Managing expenses is a critical part of any business, however it can often be a time-consuming and cumbersome process. From approving invoices, to coding and visibility there are multiple steps involved to ensure an expense invoice is accurately recorded and accounted for. Unfortunately, even with small errors in expense management it can quickly add up and lead to financial discrepancies, budget overruns and missed opportunities for cost savings. In this blog we’ll explore eight important questions businesses should be asking to improve their expense invoice approval, coding and visibility.
1. How many manual expense invoices does your organisation receive?
Manual processing of invoices can be time-consuming and prone to errors, which can lead to delays in approval and payment, and can negatively impact the bottom line. By knowing the number of manual invoices, businesses can evaluate the effectiveness of their current invoice processing system and therefore identify opportunities to automate the process, streamline approvals, and reduce errors. As a result, this can lead to improved visibility into expenses and better financial control for the organisation.
2. How long, on average, does it take to process a manual expense invoice?
A long processing time can lead to delayed payments and frustrated employees, vendors, and suppliers. By knowing the average processing time, businesses can therefore identify bottlenecks in the process and streamline the approval process. As a result, this can lead to improved visibility into expenses, more accurate coding of expenses, and better financial control for the organisation.
3. Do you have to deal with duplicate payments of expense invoices?
When invoices are processed manually, it can be easy for errors to occur, resulting in duplicate payments. By identifying the frequency of duplicate payments, businesses can evaluate the effectiveness of their current invoice processing system and identify areas for improvement. Implementing processes to prevent duplicate payments can lead to better financial control and reduce the risk of errors and financial discrepancies.
4. Do you spend a considerable amount of time chasing for approval of manual expense invoices?
When invoices are processed manually, it can be time-consuming to track down approvers and ensure timely approval. This can lead to delayed payments, frustrated employees, and strained vendor relationships. By understanding the amount of time spent chasing for approval, businesses can identify bottlenecks in the process and implement measures to streamline the approval process. This can lead to faster approval times, improved visibility into expenses, and better financial control for the organisation.
5. Do your staff spend time and effort searching for missing or lost invoices?
When invoices are processed manually, it can be easy for invoices to be misplaced or lost. Consequently leading to delays in payment and frustrated employees. By understanding the amount of time and effort spent searching for missing invoices, businesses can identify opportunities to streamline their invoice management process. This can include implementing a centralised system for invoice management and leveraging technology to track and locate invoices. Furthermore, businesses can provide training and resources for staff to effectively manage invoices.
6. Do you miss out on early payment discounts because someone is out of the office and didn’t approve an expense invoice on time?
Early payment discounts are a valuable way for businesses to reduce expenses and improve their bottom line. However, when invoices are processed manually and approvers are out of the office or unavailable, it can lead to missed payment deadlines and missed opportunities for early payment discounts. By understanding the impact of missed payment deadlines, businesses can identify areas for improvement in their invoice processing and approval process. This can include implementing backup approvers, leveraging technology to enable remote approval, and establishing clear processes for timely invoice approval.
7. Do you already process electronic (EDI) expense invoices from suppliers and what issues do these create, if any?
Electronic invoice processing can offer benefits such as increased efficiency, accuracy, and cost savings. However, there can also be challenges and issues to be addressed. By understanding the issues associated with electronic invoice processing, businesses can identify areas for improvement in their process. This can include implementing measures to address errors and discrepancies, providing training and resources to staff to effectively manage e-invoices. As well as evaluating the effectiveness of their current electronic invoice processing system.
8. Is your general ledger complex, creating issues with staff coding invoices incorrectly?
When the general ledger is complex, it can be difficult for staff to correctly code invoices. As a result, errors and discrepancies can occur. By understanding the complexity of the general ledger and its impact on invoice coding, businesses can identify opportunities to simplify the process. As well as reducing errors. This can include providing training and resources to staff to improve their coding accuracy. In addition, businesses can evaluate the effectiveness of their current coding system, and simplify the general ledger where possible.
Sie können download these questions for free to share with your business here. Alternatively, contact us to discuss how you can implement an accounts payable solution.
About B2BE
B2BE delivers electronic supply chain solutions globally, helping organisations to better manage their supply chain processes, providing greater levels of visibility, auditability and control. We’re driven by a passion for what we do, inspired by innovation, and underpinned by a wealth of knowledge. With over 20+ years of experience, the B2BE teams operate worldwide.
For more information, visit www.b2be.com.