Moving Towards a Paperless Accounts Payable Process
Hello everyone! I’m currently handling accounts payable for my company, and I’m eager to reduce our paper usage. I took over this role from someone who had been here for 40 years, and the entire process has relied heavily on paper records. We utilize an ERP system to enter invoices and print checks, but we still maintain physical copies of everything.
In our AP department, it’s just me and one other person, and we manage around 2,700 invoices each month. About 70% of these invoices are tied to purchase orders, so we spend a lot of time matching packing lists with invoices before entering them into our ERP to process payments to vendors. I’ve managed to get most of our vendors set up for ACH payments, as we were exclusively issuing paper checks until recently. We do scan our packing lists to Google Drive, and approximately 95% of our invoices now come in via email.
I’m not necessarily looking to fully automate the process, but I would love to learn how other companies manage invoice processing with minimal printing.
I would greatly appreciate your suggestions! What paperless solutions have you implemented? Any tips on starting this transition? Thank you!
One response
Hi there! It sounds like you’re already making great strides toward a more efficient, paperless accounts payable (AP) process. Here are some suggestions that might help you further reduce paper use:
Digital Invoice Management System: Consider looking into a dedicated invoice management system that can integrate with your ERP. Solutions like Bill.com, Tipalti, or Coupa allow for digital invoicing and workflows. They can automate matching invoices to POs and approvals, and store them securely in the cloud.
Utilize Optical Character Recognition (OCR): If you are still receiving some invoices in paper form, using OCR technology can help by scanning and converting these documents into editable, digital formats. Many invoice management systems offer built-in OCR capabilities.
Streamlined Approvals: Implement a digital approval workflow for invoices. Ensure that any required approvals can be done electronically, which helps eliminate the need for printed copies and allows for faster processing.
Paperless Check Printing: If you need to print checks occasionally, look for a solution that allows secure digital signatures for creating and sending checks electronically, further reducing physical paperwork.
Invoice Archiving: Since you’re already scanning packing lists into Google Drive, consider creating a systematic approach for archiving invoices in a centralized cloud storage. This will make retrieval easy while ensuring that all your documents are in one place.
Vendor Collaboration: Encourage vendors to send invoices directly through your ERP or portal, if applicable. This can help streamline the process and reduce the volume of incoming paperwork.
Training and Change Management: If your colleague is also new to the position, ensure that both of you are trained on paperless technology and processes. Encourage them to adopt a paperless mindset and share best practices.
Regular Review and Improvement: Set regular check-ins to see how your paperless initiatives are performing. Audit your workflows to identify any remaining bottlenecks and areas for further streamlined processes.
Feedback Loop: Lastly, get feedback from your fellow team members and vendors on the transition. They might have insights or suggestions that could help refine the system even further.
Transitioning to a paperless AP process might take some time, but with incremental changes and the right tools, you’ll likely see significant improvements in efficiency and reduced paper usage. Good luck with your transition!