For A/P Efficiency, Move to Automation
The Association of Information and Image Management (AIIM) has done research that showing that, of the people who responded to the survey, 74% have business improvement campaigns that would benefit from reducing paper in business processes. But, there is a large variation in just what “reducing paper” means. About 20% just scan and archive. For them the goal is to eliminate paper after the process is done and ready to be filed.
However, organizations that want to improve efficiency as well as eliminate paper, find that getting rid paper at the earliest possible point in the process really ramps up efficiency and significantly reduces costs. Surprisingly, though companies are onboard with business improvement campaigns, desire greater process efficiency and acknowledge the need to reduce paper, nearly half have made less than 5% progress, and nearly 20% haven’t even started.
We find that budget concerns are one of the biggest reasons that organizations are reluctant to initiate changes toward paperless processes. This, even though AIIM research shows an ROI of a year or less for half of all paperless adopters, with a full two-thirds achieving ROI in 18 months or less.
For Fastest ROI, Start with Invoices or Forms
Since budget concerns drive nearly every decision, we recommend that organizations whose management is skeptical about the benefit of paperless processes start with A/P or customer-facing forms, as these are two of the most paper-intensive, data-intensive and error-prone areas in most organizations. Today’s post, as well as our next couple of posts will deal with various aspects involved in going from paper-based processes to paperless processes. Today’s focus is on the A/P Department.
A/P Processing is a great initial target for nearly every organization that wants to explore paperless, automated processes, because every organization has bills to pay. Paying invoices means approval processes -- which can take time -- but prompt payment discounts mean getting it done fast. Paper invoices can go astray, delaying approval and eliminating prompt payments. Duplicate efforts sometimes result in double payments. Hand processing creates inadvertent errors (numbers may be reversed, entries may be left out.)
- What if you could automatically classify every document and extract the data you need?
- What if you could boost efficiency with document recognition and data extraction?
- What if you could improve control with accurate classification?
We know of one company that reduced invoice processing time by over 75%, saving the organization $676,000. The product they used was Forms Magic, a document recognition technology that offers virtually unmatched accuracy and data extraction. Artificial Intelligence is the secret ingredient that sets Forms Magic apart from similar products.
With algorithms that learn from large data sets without relying on traditional programming techniques set-up goes quickly. No need to have programmers manually import large numbers of documents and program rules for each type. No problems with exceptions to the rules. By using many different data points, as the technology recognizes the document data, it develops its own patterns for identification. Forms Magic truly is automated from the get-go. That’s why we like it so much.
As part of our "Office Efficiency" series of EBooks, we offer A/P Automation, which you can access below: