MES Hybrid - Document Management in Ontario - The Positive Impact on Accounts Payable

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Document Management in Ontario

• The Positive Impact on Accounts Payable

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Document Management in Ontario

• Document management in Ontario allows
  organizations to capitalize on solutions that
  eliminate unnecessary cost and add value.
• Document management impacts many departments and
  functions within a company including accounts
  payable.
• For example you can automate accounts payable so
  you process a greater number of invoices within
  shorter time periods.

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Document Management in Ontario

• By eliminating paper and simplifying the invoice
  approval process business can save money.
• The superiority of electronic processes over
  paper processes is a widely accepted concept.
• However the migration to document management
  solutions in Ontario has not been as obvious as
  you would expect.

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Document Management in Ontario

• The High Cost of Maintaining Manual Accounts
  Payable
• Each time you purchase something on credit you
  create an account payable for your business.
• Typically you owe the amount taken on credit to
  your supplier within 30 days.
• But if you pay early vendors frequently will
  give cash incentives in the form of discounts.

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Document Management in Ontario

• To get these discounts companies must process
  invoices and send payment to the vendor in as
  little as 10 days.
• Processing invoices in such a short period is
  very difficult for many accounts payable
  departments.
• Their document management in Ontario may not be
  capable of quick turn-arounds especially if its
  a manual system.

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Document Management in Ontario

• The manual steps in a paper-based system for
  document management in Ontario can cause the
  invoicing process to take upwards of 30 days.
• The accounts payable process could be further
  hindered in the following situations

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Document Management in Ontario

• Businesses typically process invoices tied to a
  purchase order.
• However its not uncommon for some invoices not
  to originate from a purchase order.
• When a purchase order has been issued accounts
  payable staff still needs to make sure the line
  items agree.
• When the paper invoice arrives it gets keyed
  into the system and is matched line-by-line
  against the purchase order.

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Document Management in Ontario

• When purchases are made without purchase orders
  the accounts payable department usually doesnt
  know the invoice exists until it shows up.
• Because no prior approval took place these
  invoices must be routed through a separate
  approval process.

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Document Management in Ontario

• When invoice discrepancies arise resolution
  involves back and forth communications among
  suppliers and internal departments before they
  can be processed through document management in
  Ontario.
• The additional processing time adds costs and
  time. In fact many companies require dedicated
  staff just to resolve invoicing disputes.

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Document Management in Ontario

• The benefits of document management for accounts
  payable are quite evident.
• By streamlining and automating the entire
  process document management eliminates the high
  overhead and delays associated with manual paper
  processing.
• Your business operates in a much more cost and
  time efficient manner.

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Document Management in Ontario

• Specific benefits for document management in
  Ontario include
• Replacing costly error-prone paper processes
  with automated records management
• Capitalizing on vendor discounts and avoiding
  late fees
• Improving vendor relationships and increasing
  favorable terms
• Resolving vendor disputes instantly with
  supporting documents easily retrieved
• Providing flexibility to submit invoices in
  various formats

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Document Management in Ontario

• Eliminating invoice delays and automating
  document routing
• Optimizing approvals payment cycles and
  reporting
• Automating invoice and check match ups
• Removing the need for additional staffing with
  volume increases
• Facilitating audits with quicker access to needed
  documents and transaction histories

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Document Management in Ontario

• Implementing document management in Ontario leads
  to higher performance levels for your business.
• When you replace a manual process with an
  electronic one you get a better managed more
  efficient and increasingly profitable business
  operation.

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About the Author

• Kevin DArcy is VP of Sales and Marketing for MES
  Hybrid Document Systems Ontarios leading
  document scanning and document management
  supplier. For more information about Document
  Management in Ontario visit http//www.mesltd.ca/
  service.htmlid10