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Does Your Accounts Payable System Need An Overhaul?

Companies often take finance functions for granted — until they run into problems.

An article on Business Computing World reports about 75 percent of invoices are still processed the old-fashioned way — on paper. That not only eats up time, but also hurts a business’ bottom line.

What’s the solution? The key to reducing the overhead costs of purchasing materials for field service companies lies in the integration of their software applications. Advanced systems can shorten this labor-intensive process to mere minutes in some cases, the Business Computing World article explains.

Technicians in the field and project managers should be able to raise requisitions electronically and have them converted to electronic purchasing orders with only approval workflows.

If companies are using subcontractors on a regular basis, some systems can automatically price the service based on existing pricing agreements, allowing the companies to bypass a formal purchase order.

The pricing agreement with the vendor acts as a contract, so you can generate the payables transaction automatically to match the inbound supplier invoice. This has the potential to substantially reduce the handling time and approval of supplier invoices. This makes sense because companies don’t want to invoice their customers until they know the true costs of their subcontracted work, so the sooner this information can be entered into the system, the sooner invoices can be generated.

Again, this is all about reducing overhead as you grow a service organization.

Source: Business Computing World, October 2012