June 2018 - IntelliChief
If you’re considering an enterprise content management system, you probably have an idea of what it can do for your business. But have you wondered just how quickly you’ll start to see a change? Companies usually see the benefits of ECM starting on day one – and continue to enjoy them well into the future. Keep reading to discover five advantages that you can expect to achieve within a year of implementing an enterprise content management system.
(Note: for the examples below, we’re assuming implementation across Accounts Payable, Accounts Receivable, and Order Processing. The more processes you automate, the more benefits you’ll see.)
Benefit #1: Lower Processing Costs
Processing an invoice takes quite a bit of time – and therefore, quite a bit of money. For most organizations, a salaried AP employee has to collect, sort, and distribute paper invoices, bring them to the appropriate individuals for processing or approval, and key them into an ERP. These are all routine, low-value tasks, but they must be completed.
ECM software can handle most – if not all – of this process without an employee’s input. This makes the process much more affordable.
A study from the Aberdeen Group found that the most advanced companies – presumably including those that used software to automate the process – spent just $3.09 to process an invoice. In contrast, companies that had no solutions in place were spending an average of $38.77. Saving around $35 per invoice processed is no small sum – especially when you consider the impact of thousands of invoices per month.
Benefit #2: Increased Accuracy
Here too, we see how manual invoice processing can hold a company back. When AP clerks have to type out all the information on an invoice, it’s easy to key the wrong number (or address, or vendor name…you get the idea.) That invoice will eventually get identified as incorrect, and someone has to take the time to find (and resolve) the error. That’s not just inconvenient; it can prevent you from paying your invoice on time, which can, in turn, prevent you from capitalizing on early payment discounts.
Benefit #3: More Early Payment Discounts
For companies that aren’t quite sold on ECM, this is one of the benefits that stand out the most.
Many vendors offer discounts to customers who pay their invoices within a specific period of time (such as 10 or 15 days). But, companies that don’t have a streamlined process in place often struggle to meet these deadlines. Unfortunately, doing so is leaving money – and lots of it – on the table. At IntelliChief, one company that we worked with saved $5.4 million in early payment discounts in their first year using our ECM software.
Enterprise content management systems make it easy to capture these discounts. They can get invoices to the appropriate processors as soon as they’re received so that they’re not just sitting around waiting to be distributed. IntelliChief’s system can also speed up the process by:
Automatically performing the two- or three-way match
Sending a manager a notification (as well as a follow-up reminder, if necessary) if the invoice needs approval or GL coding
Scheduling prompt payment with your ERP
Learn more about how ECM benefits your bottom line through early payment discounts.
There’s a common misconception that automation will take the place of actual employees. ECM software, though, isn’t designed to replace humans – it’s designed to help them have an easier time with what they already do.
When highly trained employees (like accountants) aren’t burdened with repetitive, low-value tasks (like distributing invoices), they have more time to focus on work that actually reflects their education and experience. In turn, they tend to be more satisfied with their jobs, and less likely to leave for more rewarding opportunities.
Benefit #5: Higher Customer Satisfaction Rates
Your customers expect quick turnaround times, shipment notifications, accurate invoices, and fast responses when they contact you for support. If you’re not able to meet these expectations, you may be missing out on repeat business.
ECM benefits your customer service team by helping them better manage each of these important touchpoints. It helps you start processing orders as soon as they’re received, proactively communicate with customers when their items are on their way, and confirm that your invoices are accurate before you send them out. And, if a customer calls to ask about their order status, you’ll have all the information you need right at your fingertips. This gives your customers a much better experience.
Learn More About the Advantages of IntelliChief’s Enterprise Content Management System
More satisfied customers, more satisfied employees, and an improved bottom line – what’s not to love? At IntelliChief, we can help you discover the benefits of ECM for yourself. Our solutions engineers work hand-in-hand with all of our customers to configure IntelliChief to their particular business processes, giving IntelliChief the unique ability to be mapped to any workflow, no matter how complex or nuanced. It’s one of the major differentiators that sets IntelliChief apart from virtually every other solution on the market.
Contact us today, and we can introduce you to our time- and cost-saving enterprise content management system whenever it’s convenient for you.
https://www.intellichief.com/wp-content/uploads/2021/07/IntelliChief-Paperless-Process-Management.png 0 0 Zachary Leete https://www.intellichief.com/wp-content/uploads/2021/07/IntelliChief-Paperless-Process-Management.png Zachary Leete2018-06-20 10:27:542021-03-31 16:08:125 ECM Benefits You Can Achieve Within a Year
Best Practices for Paperless Accounting
June 6, 2018 /in Blog /by Zachary Leete
In recent years, more and more companies have transitioned to paperless accounting departments. You’ve probably heard plenty about the benefits – and the promise of improved cash flow has you intrigued. But what about the potential downfalls?
It’s much more likely that you’ll experience significant – and immediate – benefits when you move away from paper invoices and purchase orders. (Even 7/11 is in on the trend, with their Japanese convenience stores saving about 220 million pieces of paper per year!) But, as with any major organizational change, proper planning is crucial. Before you go all-in, make sure you’re following the best practices for paperless accounting:
Best Practice #1: Decide Which Accounting Functions You Want to Automate
Do you want to start small, with just one thing that has been giving you trouble? (i.e., approving non-PO invoices within Accounts Payable, or managing collections within Accounts Receivable)? Or, do you plan to overhaul your entire accounting department?
It’s important to keep in mind that if you plan to use your paperless accounting software for several purposes – either now or in the future – you’ll need a system that can accommodate that. If you choose a challenge-specific solution now but eventually decide to expand, you run the risk of having to scrap everything and start over. That’s why it’s widely considered a best practice to map how your entire process works today (and what sort of exceptions you face) so that you can solve all of your problems with one investment.
Best Practice #2: Brainstorm a List of Requirements For Your Paperless Accounting Software
Once you’ve decided the “why”, it’s time to decide on “how”. You’ll want to figure out:
What types of documents do your accountants currently use? Which ones (if not all of them) will you want to store electronically?
How long do you need to keep those documents (both for auditing purposes and for regulatory reasons)?
Will you want to have different approval permissions so that certain documents can only be accessed by certain employees?
Do you want your team to have the ability to access and approve your accounting documents on their mobile devices?
How are you going to get your documents into your paperless archive? Do your employees have the time to manually collect them and scan them in, or would you get more value from a software solution that can automatically do that for you?
As you define your requirements, you’ll need to look out for “tribal knowledge” – information that isn’t documented as part of an official procedure, but that’s common knowledge for the employees who are involved in the day-to-day work.
Best Practice #3: Get Feedback From More Than Just Your Accounting Department
While your accountants will be using the ones actually using your paperless accounting software (and it’s crucial to ask them what features would make the most difference in their day-to-day productivity), you’ll want to get input from your IT team as well. Some accounting automation programs integrate with ERPs and line-of-business systems right out of the box. Others require custom coding – and your IT team might end up being responsible for it. Let them evaluate each potential solution’s technical specifications so that you find the right one for your organization’s needs.
Best Practice #4: Speaking of ERPs…Choose a Paperless Accounting Solution That Can Make the Most of Yours
JD Edwards’ accounting modules are significantly different than SAP’s – and little quirks can make a big difference. When you choose a paperless accounting solution, it’s a good idea to find a vendor who has specific experience with your ERP.
Think of it this way: if you drive a Mercedes, you wouldn’t get it serviced at a Toyota shop. Sure, a car is a car – but you’re going to get the best service from a mechanic who understands the unique parts. The same concept holds true for accounting automation. You’re likely to have the best experience if you choose a vendor that knows your software inside and out.
Best Practice #5: Know Your Timeline
Once you realize how much a paperless accounting department can transform your organization, it’s normal to want to get started right away. But, a truly thorough implementation process – one in which your new solution is custom-configured and extensively tested before it goes live – can take time. After you officially choose a vendor, plan on four to six months to get everything properly set up. But, once you’re up and running, your accounting department won’t look back.
Interested in learning more about paperless accounting? Contact IntelliChief’s team of experts and let us know where you’re having trouble. We can help you customize an AP automation solution for your company’s specific needs.
https://www.intellichief.com/wp-content/uploads/2021/07/IntelliChief-Paperless-Process-Management.png 0 0 Zachary Leete https://www.intellichief.com/wp-content/uploads/2021/07/IntelliChief-Paperless-Process-Management.png Zachary Leete2018-06-06 08:59:582021-03-31 16:18:04Best Practices for Paperless Accounting