Whatever your legal business, the new widely available document management systems can work for you.
In the dim and distant past, long before technology took hold, working in accounting and finance meant entering figures manually which, in turn, could lead to countless hours spent recalculating and tracking down errors. Thankfully such labour-intensive work is in the past and thanks to developments in technology, tasks which once took many hours for several people to carry out, now takes as little as ten minutes for a single software programme.
Although you would think that the use of accounting and finance technology is now commonplace, according to research carried out in Germany in 2010, just 5% of the 30 billion invoices processed across Europe in 2010 were handled electronically. This highlights the need for financial documents to be handled electronically as manual processing can increase the cost of processing a single invoice by as much as 20%.
However, although the significant cost differential between manual and electronic processing is a serious issue, perhaps of greater concern is the delays which can be caused by manual processing. When an invoice, for example, is processed manually 20% of the time it spends working its way through the system will be in ‘transit’, with 5% in actual processing and a staggering 75% of the time doing nothing at all. During the 75% of time that an invoice is doing nothing at all, the chances are that this idle time is caused by a system which requires a high level of managerial or supervisory input.
Anything that reduces the time that invoices and other financial documents spend being idle can only be seen as a good thing and as something which will save money and time. Clerical tasks which are simply demanding in terms of time but could be carried out electronically, can no longer be justified in a dynamic business environment.
Nowadays there’s no good reason why an invoice should remain idle for so long. Businesses have at their disposal a wide range of different options for dealing with invoices far more quickly than they are doing at present.
Using an e-invoicing system really should be seen as an urgent goal for businesses of all shapes: not only will it help to improve the management of cash flow and spending, it will also provide enhanced visibility of the entire invoicing process. E-invoicing needs the minimum of human intervention and signals an end to invoices sitting dormant for 75% of their life time and this is something that has got to be a good thing for everyone.
If you are looking for further advice and information on how to streamline your financial systems, you’ll find that there are a number of document management companies and associations based across the UK. Working with an established, reputable document management company has the potential to reduce your reliance on paperwork, streamline your systems and increase efficiency. So rather than relying on out-dated paper-based accounting systems, why not choose to automate your accounts department?