A lot can go wrong in accounts payable (AP). From misplaced records to overdue payments, controllers and AP managers have their hands full making sure everything runs smoothly. In most cases, insufficient paper-based processes are to blame for such problems. Document management system (DMS) software cures these headaches and enables an error-proof accounting process that offers significant benefits to AP managers.
DMS consolidates data in a central repository, which streamlines AP departments in several ways. For one, a centralized system means less data entry. When DMS is integrated with accounting systems and other enterprise software, managers and controllers never have to sift through multiple databases to cross-reference information. Everything is in one place as soon as documents are processed into the system
Storing all documents in a single location also gives controllers complete visibility into cash flow and records that need their immediate attention. Managers can even drill down to how documents were handled so they can better understand accounting processes and identify bottlenecks.
What’s more, a centralized storage system means data is just a few keystrokes away. DMS software is loaded with intelligent indexing features that convert documents into searchable files. If an AP manager requires purchase orders or invoices from specific dates, for instance, all they need to do is enter a couple of keywords in a search bar.
Early payment discounts
Controllers and AP managers are primarily concerned with addressing outstanding invoices on time. The problem is slow and inefficient paper processes make it difficult to keep track of invoices and their deadlines. And when AP managers make late payments, your company misses out on vendor discounts and strains its relationship with suppliers.
DMS solutions make it easy to stay on top of invoices thanks to workflow automation. For example, when there is an outstanding payment that has to be approved, DMS software can be programmed to remind AP managers so your business can secure early payment discounts.
As a controller or AP manager, it’s tempting to micromanage staff members to make sure the correct procedures are followed. But this style of management can be counterproductive and has detrimental impacts on employee morale.
When DMS software is deployed, AP managers don’t need to put their staff under close scrutiny. Everything from document processing and approvals to distribution and payment can be streamlined with workflow automation. This ensures that invoices and other important records go through standard business protocols, giving managers more time to focus on big-picture projects.
Another benefit of DMS software is it allows AP managers to control how financial records are accessed throughout the company. They can apply stringent user permissions to certain files within a DMS since companies can be penalized for giving anyone unfettered access to private records. Documents are also protected by high-level encryption and threat prevention systems so controllers can protect the privacy and integrity of their data.
Companies are advised to retain financial records for at least seven years to stay on the right side of the IRS. Cloud-based DMS automates document retention and deletion schedules so you’re always compliant with industry best practices. Also, in the event of an audit, managers don’t have to spend weeks or months compiling and organizing files. DMS software logically categorizes them in folders that are quick to export and share with auditors.
The best part about DMS is how it dramatically cuts costs and increases efficiency. Processing invoices, which would normally take days to accomplish, only takes a few minutes and much less resources with a DMS system. Automated workflows even eliminate tedious manual tasks that get in the way of your managers’ daily responsibilities.
All in all, implementing a DMS system to enable an error-proof accounting process can make a huge difference to your company’s bottom line. If you want to make things easy for your AP controllers and managers, PaperSave is the way to go. It’s a feature-rich solution that can be paired with enterprise accounting systems like Sage Intacct and Dynamics 365. Schedule a free personalized demo with us today.