s data analysis, and not be involved in time-consuming paper trails.

The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping

Accounts Payable would be easy if it wasn’t for all the paper, as anyone who works in the area will tell you. Paper-based, manual accounting systems have been the bugbear of corporate AP departments for decades.

Even the most rigorously organised AP system has plenty of opportunities for problems, including lost or misplaced invoices; incorrect manual data entry; time lost sorting and filing paper, or trying to locate matching purchase orders. All of which leads to slow processing, which can impact directly on the organisation’s financial reputation with partners and suppliers. What’s more, manual AP systems make it almost impossible to meet the regulatory and compliance demands of Sarbanes Oxley, IFRS and others for complete document traceability and auditability.

All in all, it’s a recipe for a fruitless paper chase. Throwing manpower at the problem isn’t a viable solution. More people means more invoices processed – but employment and labour costs are significant for such skilled staff, which limits expansion in the AP function. On average, a full time AP employee can process around 8500 invoices per year using manual processes. Yet world-class companies can process upward of 80,000 invoices per person per year – a quantum leap in efficiency.

Flicking the switch

So how is a ten-fold boost in productivity possible? It’s simply a question of automating as many aspects of the AP function as possible. The real costs involved in AP are the man-hours involved in manual tasks, including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.

Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.

The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping

ectly on the organisation’s financial reputation with partners and suppliers. What’s more, manual AP systems make it almost impossible to meet the regulatory and compliance demands of Sarbanes Oxley, IFRS and others for complete document traceability and auditability.

All in all, it’s a recipe for a fruitless paper chase. Throwing manpower at the problem isn’t a viable solution. More people means more invoices processed – but employment and labour costs are significant for such skilled staff, which limits expansion in the AP function. On average, a full time AP employee can process around 8500 invoices per year using manual processes. Yet world-class companies can process upward of 80,000 invoices per person per year – a quantum leap in efficiency.

Flicking the switch

So how is a ten-fold boost in productivity possible? It’s simply a question of automating as many aspects of the AP function as possible. The real costs involved in AP are the man-hours involved in manual tasks, including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.

Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.

The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping

its expansion in the AP function. On average, a full time AP employee can process around 8500 invoices per year using manual processes. Yet world-class companies can process upward of 80,000 invoices per person per year – a quantum leap in efficiency.

Flicking the switch

So how is a ten-fold boost in productivity possible? It’s simply a question of automating as many aspects of the AP function as possible. The real costs involved in AP are the man-hours involved in manual tasks, including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.

Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.

The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping

including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.

Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.

The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping

s data analysis, and not be involved in time-consuming paper trails.

The ultimate aim is sometimes referred to as “lights-out accounting” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping to turn AP into a profit centre, not a cost centre.

Let’s take a close look at exactly how this can be achieved. We will use a real-life example of the AP department of a large business in the licensed trade, which undertook a phased migration from paper-based manual processing to fully automated invoice processing.

Raising a glass to automation

DrinkCo is a UK-based business that owns several well-known pub chains. As one of the largest pub operators in the UK, the company processes 600,000 invoices per year. As a Peoplesoft (now Oracle) Accounts user, DrinkCo wanted to deploy an invoice capture solution to bring key financial data directly into the Peoplesoft solution and accelerate processing.

With ROI being a key factor in the decision to deploy, DrinkCo undertook a proof-of-concept exercise with Digital Vision that demonstrated that ROI was possible within months, rather than years.

The proof-of-concept was based around an invoice capture solution from Paradatec, integrated with data extracts from the Peoplesoft system so that invoices can be matched with purchase orders and goods received notes. This demonstrated that high levels of accuracy were possible with data capture on the majority of invoices received.

Before optimisation of the capture process, data capture on general invoices was 73%. By focusing on invoices from large-volume suppliers, this was raised close to 100%. Furthermore, the process proved that the artificial intelligence system performed regardless of invoice layout, and that that the invoice capture engine’s AI rules could be adapted to handle different invoice layouts, or those from new suppliers.

On completing the proof of concept, Digital Vision gave a detailed specification to DrinkCo to integrate the Paradatec capture solution, SpeedKey validation and Contempus invoice processing with Peoplesoft Accounts, with