Transitioning to a Paperless Accounts Payable Process

If you’re thinking about adopting a paperless accounts payable process, you probably have questions. “How much is it going to cost you?” “What’s it going to mean for your day-to-day workflows?” “When will you see a return on your investment?” (and more) have all probably popped into your head at some point.

At IntelliChief, we’ve helped hundreds of companies adopt automated Accounts Payable paperless workflows. If you’re considering a paperless transition, we can help—and in the meantime, we can tell you exactly what to expect from the process.

Key Takeaways

• Transitioning to a paperless accounts payable process can significantly improve invoice processing speed and reduce costs.
• Expect faster approval processes, improved accuracy, and less administrative work.
• A smooth transition involves proper change management, employee training, and ERP system integration.
• Look for a scalable, enterprise-class solution that fits your long-term business needs.

What Does the Paperless Accounts Payable Process Look Like?

Your accounts payable department has several responsibilities, but let’s use invoice processing as an example.

When you process an invoice the traditional way, your employees have to manually:

1. Collect invoices from mail, email, and fax
2. Assign invoices to processors
3. Enter information into your ERP
4. Retrieve the purchase order and/or receipt
5. Confirm prices, quantities, and terms
6. Send to a manager for approval (if needed)
7. Contact the vendor to correct errors (if needed)
8. Create a voucher and move to the payment queue

With so many different touch-points—and so many places where documents change hands—this approach is prone to delay and inefficient.

With automation, however, you can significantly speed up the process. IntelliChief’s automated invoice handling process is simple and intuitive. Start by scanning your invoice in, or letting IntelliChief automatically import it from your email or fax system. From there, our program:

1. Saves the invoice into a digital archive
2. Imports the invoice data into your ERP
3. Retrieves the purchase order and/or receipt
4. Confirms the prices, quantities, and terms
5. Routes the invoice to a manager for approval (if needed)
6. Sends a notification if any errors are found
7. Connects with your ERP to create a payment voucher
8. Schedules payment for the first available check run

By handling the most time-consuming aspects of the process, our paperless accounts payable software frees up your team to deal with other responsibilities, like exception handling and analyzing expense reports.

How Long Does Paperless Invoice Processing Take?

Automated invoice processing is much faster than traditional invoice processing. If your accounts payable is going paperless, it can significantly reduce processing time and costs. Even for companies at the top of their industry, it takes upwards of four days to manage a paper invoice. (It can also take significantly longer for companies with less efficient processes in place.)

With invoice automation software, however, this number can be instantly reduced. In some cases, invoices can even be processed automatically, without any input from an employee. This is sometimes referred to as “straight-through processing,” and it’s the gold standard for AP efficiency.

In cases where an employee needs to manually check an invoice (e.g., our software detects a duplicate change), IntelliChief puts all the information they need right at their fingertips. Employees can access purchase orders and receipts with a single click, and IntelliChief will clearly highlight the fields that require attention. This makes exception handling a breeze.

What Other Accounts Payable Functions Can Be Automated?

In Accounts Payable, paperless workflows for invoice processing are possible using IntelliChief – but that’s not all. Our paperless accounting software can also be used for:

• Remote GL coding
• Submitting purchase requisitions
• AP audit preparation

Before you go paperless, you’ll want to look at your current Accounts Payable process and figure out where your trouble points are. Is it getting approvals for non-PO invoices? Is it keeping the approvals process moving smoothly when your managers are out of the office? Evaluating your workflows before you make any major changes can help you figure out where to focus your efforts.

Another thing to keep in mind: many companies use automation software in Accounts Receivable, Order Processing, Customer Service, and other departments. If you’re looking to automate more than just Accounts Payable, you’ll need an enterprise-level solution that you can easily scale.

Key Considerations for Selecting the Right Paperless Accounts Payable Solution

When it comes to selecting a paperless accounts payable solution, not all software platforms are created equal. With accounts payable, going paperless offers significant advantages, but to ensure you make the right choice for your business, there are several key factors you should consider before implementing a solution.

• ERP Integration Compatibility: Ensure the solution integrates seamlessly with your current enterprise-class ERP systems, such as SAP, Oracle, or Infor. Integration with your ERP ensures that invoice data flows directly into your system, reducing manual entry errors.
• Scalability: As your business grows, your AP processes should scale with you. Choose a solution that can accommodate increasing invoice volumes without compromising on speed or accuracy.
• Ease of Use: Look for an intuitive, user-friendly interface that requires minimal training for your team. A system that mirrors your ERP screens will reduce the learning curve and allow your team to adapt more quickly.
• Customization and Flexibility: Your accounts payable needs may differ depending on industry, geography, or business model. Choose a solution that can be tailored to your specific requirements, from routing workflows to configuring approval hierarchies.
• Security and Compliance: A paperless accounts payable solution should offer robust security features, including encryption and audit trails, to ensure sensitive data is protected. Additionally, it should help you stay compliant with industry regulations and standards.
• Support and Training: Ensure that the vendor offers ongoing support and training resources. A successful transition to a paperless accounts payable process depends on your team’s ability to understand the system fully.

By carefully evaluating these factors, you can ensure a smooth transition to a paperless AP solution that delivers long-term benefits for your business.

Change Management and User Adoption: Key Considerations for a Successful Transition

When transitioning to a paperless accounts payable process, one of the most crucial aspects is change management. This process isn’t just about installing new software; it’s about transforming how your team works day-to-day.

Training & Support

Your employees will need adequate training to understand the new system. IntelliChief’s user-friendly interface mimics the familiar screens in your ERP system, making the transition smoother. On-site training can also be scheduled to ensure that your team is fully equipped to handle the new system.

Internal Buy-In

Getting internal stakeholders (Finance, IT, Operations) on board is essential. These departments will benefit the most from the automation, but they need to see the long-term value and the ROI. Establishing clear communication early on is key to ensuring a smooth transition and widespread adoption.

Overcoming Resistance to Change

Change often comes with resistance. Employees might be concerned about job displacement, new processes, or the unfamiliarity of the software. By communicating the benefits of a paperless accounts payable process and addressing these concerns upfront, you’ll foster a more cooperative attitude toward the change.

Strategic ROI and Cost Reduction: The Long-Term Benefits

While the initial transition to a paperless accounts payable process might seem like a significant investment, the long-term return on investment (ROI) is undeniable.

Efficiency Gains

Automated workflows eliminate manual tasks that are error-prone and time-consuming. The hours saved on invoice handling can now be redirected toward strategic activities that add more value to your business. Reduced cycle times for approvals and payments help improve cash flow management.

Cost Savings

By reducing the reliance on paper, printing, and postage, companies can see a tangible decrease in operational costs. For example, the cost of handling a paper invoice can be significantly reduced by switching to a paperless accounts payable workflow. Furthermore, automation improves accuracy, reducing costly mistakes and the need for rework.

Scalability

A paperless solution scales easily as your business grows. With the right enterprise-class ERP integration, you’ll be able to handle more transactions without adding extra headcount or resources. This scalability is crucial as your company expands, allowing you to manage growing volumes with ease.

Take the First Step Toward a Paperless Accounts Payable Process

We get it: change is never easy. But when time– and cost-saving measures are eventually implemented, most companies wonder why they waited so long.

If you’re ready to learn more about AP automation, just reach out and let us know. IntelliChief’s document management experts can help you implement a paperless Accounts Payable process that’s customized for your specific business.