Accounts payable (AP) refers to the department that handles all payments owed by a company to vendors and creditors. AP is responsible for paying invoices on time and keeping records of what is paid. In any company, these invoices and records can pile up quickly, and scanning helps accounts payable departments stay on top of their work with greater efficiency.
Every AP department has an accounts payable process to make a vendor payment. The process can differ, but typically looks like this:
- Receive a Bill – When a company makes a purchase, a bill is sent with details of the purchased items and quantities to be received.
- Review Bill – The bill is reviewed for verification. It should include the vendor name, authorization, and date of purchase. All details should match the purchase order.
- Update Your Records – Ledger accounts will be updated based on the received bill.
- Make Payment – Payments should be processed before their due date. All required documents should be prepared and verified.
In addition to this process, AP should have internal controls to prevent paying fraudulent, inaccurate, or duplicate invoices.
Issues with Accounts Payable
The AP department must be precise in order to maintain profitability for your business. As your company grows, the volume and complexity of your invoices will only increase. Paper invoices require a time-consuming and error-prone process of manually entering data. This slows down approvals, uses too much paper, and causes frustration in the department.
What is Invoice Scanning?
Invoice scanning converts paper invoices into digital files using Optical Character Recognition (OCR). OCR interprets the printed text and converts the information into searchable data. Specific fields can be extracted from each invoice and organized as needed.
Invoice scanning is the first step in digitizing your accounts payable process. Using the digital invoice format, the AP department can automate workflow from invoice receipt to approval for payment.
The Benefits of Invoice Scanning
Invoice scanning boosts efficiency with improved data extraction, better coding accuracy, and eliminating human error. It also reduces costs through saved resources and less training required for employees. Digital access is also more easily controlled, protecting privacy and maintaining compliance. Fully automated AP processes can also be scaled more easily than a manual process as your business grows.
Invoice Scanning Services
Invoice scanning can require very specific applications and is best handled by professionals. Your scanning provider will scan and verify your invoices and return them in a digital format compatible with your accounting software. Record Nations partners with certified providers that protect data privacy through each step in the scanning process.
Streamline Your Accounts Payable with Record Nations Today
Record Nations offers invoice scanning and document management services to streamline your AP department. We will scan and capture invoices quickly and accurately to save you money and time. Our experts will also help you automate your AP processes to reduce frustration and reduce manual data entry. Give us a call at (866) 385-3706 or fill out the form to get started today.