Purchase Invoice Processes
Hello I’m Paul Strachan, and I operate a registered office of the Auditel Network. I work with organisations of all sizes to increase their profitability, improve their efficiencies and in time help them to become more productive.
In an attempt to keep at the cutting edge of supplier engagement and to benefit our clients, I attended a meeting this week where one of our key suppliers was stating the case for automation in the purchase invoice and approval process.
How much is your purchase invoice process costing your business?
Many small businesses look at ways to improve and streamline their invoice capture and approval process, like the time it takes to complete an invoice or when they are lost or waylaid with the ensuing duplications or even double payments. There’s an impact on available credit limits and disrupted supplies if key suppliers are not paid on time.
Does this sound familiar?
That’s from the perspective of the business owners, but surprisingly, there’s a real scepticism from accounting practitioners who question the value of an automated approval process for larger businesses, that are not owner-operated. This is surprising, the business is more complex in situations where staff are authorised to purchase their requirements and start building their line of credit with suppliers.
At this point, the invoice approval process becomes increasingly important, more complex and more time-consuming. This is particularly important for small, growing organisations, for whom cash flow management is critical.
Businesses can benefit significantly from good advice
Poor processes in the Accounts Payable function increases the risk of fraud or even bankruptcy. It can be too easy for small businesses to over trade and as a consequence become unable to meet their cash requirements, from paying suppliers to meeting payroll and VAT deadlines.
Accounts payable automation delivers a number of things:
- Best practice audit compliance
- It will remove 90% of the time spent on the current capture process
- It will release resources for other valuable work to be carried out
- It maintains real time cash requirement from the moment the invoice arrives
- It aids good management of critical suppliers.
If this message rings true for you, as it did for me, then we should speak further. So let’s connect using any of the methods below.