Constructing the accounting technology stack is a challenge that all Controllers and Finance Managers face at one time or another. In an effort to keep all the processes they manage running smoothly, it’s important to carefully examine any new solutions to ensure they will address the key pain points their teams face.
Take, for example, the invoice approval process managed by Accounts Payable departments. In an effort to regulate this process, many organizations rely on “automation” solutions that eliminate the need for communication between people. The prevailing theory is that the more “hands off” a process is, the more efficient it will become. However, removing the ability to communicate by implementing a completely automatic workflow often creates a different set of problems. This lack of communication causes not only frustration for Accounts Payable employees, but it can impact the company’s bottom line when early payment discount deadlines are missed, or invoices are paid late. From a manager’s perspective it is more difficult to monitor cash flow in an organization when the approvals process is not optimally efficient.
For many companies, improving communication could be the solution to improving their Accounts Payable process. Controllers or managers interested in this approach should investigate Interactive invoice management solutions, which focus on improving interpersonal communications in Accounts Payable, rather than eliminating it.
General Benefits of Interactive Accounts Payable Solutions
There are several unique benefits to interactive Accounts Payable solutions that specifically resolve the communications breakdown. A few characteristics of these solutions are:
- A communication thread documented on the invoice.
- Flexibility to add new people to the conversation via email notifications.
- Artificial Intelligence components that reduce time spent coding invoices with ongoing data entry pattern recognition.
- OCR technology.
- Little to no implementation project. These light, “plug n play” solutions integrate quickly with ERPs.
Interactive Invoice Management May Not be For You If…
Although interactive invoice management technologies can help the majority of Accounts Payable teams work faster and easier, there are some scenarios it may not. Situations it will not help with include:
- Inventory matching, or scenarios in which minimal approvals are required.
- An environment in which there is already a rigid required workflow matrix.
- A payments solution is not already in place.
Selecting an Accounts Payable solution that resolves the issue of fractured communication requires an open-minded approach. Change management within the organization will revolve around removing the mindset that “automated workflows” are necessary. To resolve this frustration at the core of the Accounts Payable process, it’s critical for Finance Managers and Controllers to consider how they can empower their employees to communicate in a natural way that promotes a productive exchange of information.