Many businesses, both large and small, have capitalised on the trend of rapid technology adoption, but an organisation's barrier to growth and predictable cash flow lies within its corporate walls: an efficient accounts payable (AP) process.
The correct transformation in AP processes can offer a seamless alternative to high processing costs, tedious data entry and misplaced invoices, allowing businesses to reap the benefits of financial agility.
Lack of process visibility
The lack of process visibility was also a potential cause for concern in achieving compliance
Espria, the pioneering managed service provider, was responsible for processing an average of 50 invoices daily—around 12,000 per year.
However, the manual process lacked the control to store these invoices in secure places, resulting in inefficient extractions, the input of the appropriate data and delayed authorisation for payments. The lack of process visibility was also a potential cause for concern in achieving compliance with certain governing bodies.
Receiving and processing invoices
With 20% of these invoices being invoiced in hardcopy and the rest digitally, adding the correct nominal code and other relevant data was strenuous. It equated to nearly 90 hours to obtain the necessary authorisations each week.
Furthermore, it became difficult to process invoices due to the differing (in situ and offsit) locations of relevant employees, creating a time-consuming and constrained workflow with a bottleneck in receiving and processing invoices. All of which risked late supplier payments, reduced credit limits and ultimately, service levels.
Implementing DocuWare
Espria has been running DocuWare for over 4 years to successfully streamline their invoice systems
Recognising the inefficiencies associated with their manual AP processes, Espria worked alongside the DocuWare team to implement a system that achieves better workflows with their invoice operations. As a managed service provider that continually tests any solutions in-house to ensure their suitability before offering them to valued customers, Espria has been running DocuWare for over four years to successfully streamline their invoice systems and create a new Document Management System for this process.
The implemented solutions focused on critical areas to tackle disorganised systems and inaccuracy, replacing the legacy AP system with an automated, streamlined service that allows invoices to go through an entire workflow with incredible speed.
Cloud-based system
With employees working both on and off-premises, a cloud-based system reduces any delays and enhances flexibility for all employees while remaining cost-efficient.
DocuWare's seamless integration with SAGE accounting software allowed for easy creation of CSV files to keep projects on time and maintain profitability with project finances.
Intelligent indexing and capabilities
Espria implemented a monitored mailbox and user scans to centralise all invoices within the system
To reduce disorganisation with invoice submission, Espria implemented a monitored mailbox and user scans to centralise all invoices within a managed system, eliminating digital chaos.
DocuWare detects invoices and related documents, applying Intelligent Indexing and prioritising any urgent invoices to achieve an organised system that is easily navigated. These capabilities also allow for the automatic extraction of required data such as invoice number, date, supplier name, value, and supplier code and the creation of invoice layouts based on new suppliers added.
Automated approvals
Approval from the relevant bodies extends the time taken to complete invoice transactions. However, the DocuWare/AP process mitigated the need for manual intervention by processing large volumes of transactions and marking each invoice as urgent or confidential as necessary.
This speed and accuracy translated to timely payments and became crucial for maintaining smooth operations and keeping suppliers happy with consistent credit levels.
Secure digital storage
Organising all necessary files within the new document management system implemented by DocuWare resulted in centralised documents that reduced filing chaos while ensuring GDPR compliance and minimising the risk of non-compliance penalties. The system also maintains detailed, auditable records that are essential during financial audits or reviews.
Batch scanning
Batch scanning was designed to streamline and automate the accounting workflow
Batch scanning was designed to streamline and automate the accounting workflow, allowing Espria to process multiple invoices in a single pass.
Scheduling payments in batches leads to better cash flow management and an improved understanding of company outgoings. This scalability also means that as business transactions grow, the Espria payment system can grow with it, handling more without a significant increase in cost or complexity.
Error mitigation
The newly implemented RAG (Red, Amber, Green) system reduced the likelihood of errors in invoices by checking for accuracy, with the capacity for manual adjustments to 'teach' DocuWare and refine the process according to the company's needs.
As well as supporting accurate account management, real-time reporting provided Espria with analytics for informed decision-making and strategic planning with consistent data accuracy for approvers to check previous invoices for variance through historical reviews.
Results
Espria was able to aggregate its AP processes, reporting and workload control into a single location
By implementing DocuWare, Espria were able to aggregate its AP processes, reporting and workload management into a single location that provided scalability, security and efficiency. It mitigated the loss of hard copy invoices while also reducing manual errors, labour and improving data integrity.
The DocuWare AP system significantly reduced paper consumption with 90% of invoices approved on the same day, saving 81 hours per month. This not only eased the burden on AP staff but also reassured them with the reduction of manual errors, allowing them to focus on more dynamic priorities, such as client relationships and timely supplier payments.
Other strategic initiatives
The new system enhances operational efficiency while supporting hybrid working, ensuring business continuity and staff satisfaction.
With less time, employees and resources needed to manually process invoices, Espria now has more space to evaluate how to use its budget. It can also empower its staff to redirect those resources to other strategic initiatives that will drive growth and profitability.
