4 document management processes that you can automate in the finance area
Document management automation in accounting and finance represents an enormous opportunity to improve operations and reduce costs. According to the American Productivity and Quality Center (APQC), nearly 3 out of 4 organizations have an active financial process transformation project underway
"Document management automation in accounting and finance represents an enormous opportunity to improve operations and reduce costs. According to the American Productivity and Quality Center (APQC), nearly 3 out of 4 organizations have an active financial process transformation project underway. Adopting digital tools to optimize document management generates long-term benefits for any company..
In this context, any company can start to automate these 4 financial and accounting processes in 2022:
1. Accounts payable: A high level of management efficiency is difficult to achieve when sending paper invoices. It is not uncommon for a paper invoice to remain in a person's inbox for a week, or to get lost altogether, resulting in additional employee hours spent searching for it.
However, with digital workflow, available through a document management system (DMS) such as Docuware, files move through the company as efficiently as possible. The team receives automatic alerts to correct errors or search for additional information. Instant flagging of non-standard invoices, flexible routing to the correct payers and annotations are key to automating the accounts payable process.
2. Documentation for audits: If you have a paper-based system, an audit is often an ordeal for the accounting department and the auditor. Think of the time wasted by the accounting staff sifting through paper files that may not even be stored on the premises. And that's even before the audit begins. If your paper files are incomplete or disorganized, your audit could be long and stressful.
If you eliminate cumbersome paper processes and replace them with secure digital documents, your team will be more prepared because they'll have everything they need at their fingertips. It's important to be able to see who has accessed which accounting documents, and when. This is especially key for publicly traded companies. With digitization, the team can respond quickly to auditors' requests and maintain greater control over business information.
3. Procurement and purchasing: Procurement includes supplier processes and requirements; managing supplier relationships; and ultimately ordering the goods and services needed to manufacture a product or provide a service. Procurement teams can get lost in piles of documents and incompatible paperwork, files, formats and systems. Converting paperwork from a physical to a digital format is a critical first step in improving the process.
4. Month-end close: Once the processes described above have been automated, companies should focus on incorporating these improvements into a department-wide effort to streamline the monthly close process. This frees up time for strategic thinking. The finance team can better understand the implications of the data they are reporting on, rather than just the numbers themselves.
According to the Association of International Certified Professional Accountants (AICPA), ""Speed and accuracy are a constant challenge for those involved in the month-end close process. Many organizations seek information at a rapid pace, but they also need to be able to rely on the data they are acting on"".
Get ready to make the leap
Your document management solution should easily integrate with any financial, accounting and ERP system that drives the company's financial operations. A document management decision is not just a matter of how and where electronic documents are stored; its goal is to automate business processes.
It is clear that automating processes has considerable benefits for companies, their customers and their bottom line. It is key to accelerate the digital transformation of accounting departments with DocuWare analyzed the key requirements and decision points that most companies share. These common denominators were then integrated into easy-to-implement digital workflows. This turnkey solution can be up and running in just a few days.
For more information, visit: DocuWare | Ricoh Latin America (ricoh-americalatina.com)