Finance teams constantly find themselves battling things like:
- a need to reduce costs
- greater workload with the same amount of staff
- manual processes, which often lead to errors and
- disparate sources of data, making it hard to find information when they need it.
The good news is that technology can improve these issues. And that’s why finance needs to become friends with technology.
Here’s where technology can help
Automate your whole procurement process with electronic data interchange (EDI)
This can significantly improve the processes of ordering and invoicing for any finance team. So, what is it? Simply put, EDI is the exchange of business information directly between business software. Think of a purchase order being created in one company’s accounting package, and it ‘magically’ appearing in the supplier’s software.
EDI can help:
- Reduce manual processesEDI can ease a lot of pressure on finance teams that find themselves processing an increasing amount orders. You’ll no longer need to input data into multiple systems or email documents to buyers and suppliers. This leaves you more time to focus on the other tasks that might come up.
- Reduce costsEDI reduces manual processes and significantly reduces the amount of labour needed to process orders. This is especially beneficial during peak times of the year where casual assistance can be required. On top of this, EDI is all digital so you can save a lot on printing and filing.
- Reduce errors and improve data accuracyEDI also reduces the risk of errors, making the data more reliable for reporting. You could use that data to monitor suppliers’ performance around responding to orders or delivery times.
Remove manual handling of invoices with e-invoicing
Another bit of technology that can help finance teams is e-invoicing. Invoicing makes up a huge chunk of finance teams’ time. Electronic invoicing, or e-invoicing, enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning.
- Reduce manual processesE-invoicing automates a lot of the manual processes involved in invoicing. No need to input the invoice information into multiple software and attaching to an email before sending to the customer. Everything is done within your existing ERP or accounting software.
- Reduce costs
Reducing manual processes simplifies invoicing for any finance team leaving you more time to work on other tasks. It also helps reduce the need to additional staff cover during peak times. The sending and filing of these e-invoices are electronic reducing your paper use and filing costs.
- Data accuracy
Manual processing is reduced limiting the risk of errors and improving data accuracy. Fewer errors means fewer disputes with partners and the need to follow up or correct invoices.
Use the data from your automated processes for more
If you leverage technology, the likelihood is that you can now use the data at your fingertips in more in-depth, insightful ways.
- Two-, three- or four-way matching
Is your team manually checking orders before they pay invoices? This is something that can be completely automated. Two-way matching checks the quantity and price on the order and the invoice to make sure you’re paying for exactly what you ordered. Three-way matching also checks what was shipped (on a despatch advice). And the bee’s knees, four-way matching, checks what the suppliers has agreed to send from the order response.
- Invoice reconciliation
With a feed from your bank and visibility of your invoices, our technology can reconcile your invoices. Imagine the time that could save!
Now that all the raw data is at your fingertips, you can use it to report on anything. It might be DIFOT (delivered in full on time) performance, the amount of invoice discrepancies or something else. The options are only limited by your imagination.
If you’re interested learning more about how e-invoicing or EDI can help you, request a call from one of our EDI experts.