Detailed Case Study on Digitisation of Finance Documents

An Evolving Accounts Payable Department in an Indian Multinational Company

“A strategic approach to optimizing the cash management’’

Major Scope –

An Indian multinational company headquartered in Bangalore providing business consulting, information technology, and outsourcing services decided to accomplish a better cash flow system to regulate the precise and quicker processing of the transaction documents for the accounts payable/receivable processes.

Client Vision –

• Exponentially fast invoice processing and approval.
• Timely payments.
• Integrations with existing finance systems.
• Customized workflow.
• Monitor performance and productivity.
• Steer clear of late payments and loss of paper data.
• Better relationships with vendors.
• Controlled access to the payment cycle.
• Pinpoint delays.
• Payables are routed to predetermined business processes.
• Multinational functionality to build a global supplier network.
• Validate supplier invoices against contract terms and associated POs to ensure billing accuracy.
• Review all reconciliations to reduce the likelihood of overpayment or duplicate payments.

Roadmap for Digitization –

A highly trained and experienced team of Tyrus Technologies Private Limited, a Document Digitization company headquartered in Bangalore, initially studied the client’s business process and operational needs.

We created a detailed process document with its allied documents. The team could accomplish the task of developing customized software owing to an outstanding customer handling process. We put forward the concept of a centrally processed office where all the account data will get classified, digitized, and uploaded to the database to eliminate errors and disorientations. The suggestions in smoothening customer relations and rapport-building came in very handy.

Scope Identified – 

• Real-time reporting and analysis.
• Purchase team management.
• Notified payment dues.
• Multinational functionality.
• Accounting and reporting process.
• Track internal buyer practices.
• Set clear account payable metrics.
• Simplify audits.
• Optimized cash flow.
• Improved relationship with vendors.

 Key Milestones Achieved – 

• Custom-built Software: Software installed to regulate the cash flow system, accelerate invoice processing, and optimize payment timing.
• Single Collection Center: All the hard copy invoices were routed to the collection centre to get the data digitized and upload into the database management system to regulate a standardized approach and avoid manual errors and data loss.
• Automated Data Capture: Invoice information is automatically extracted from paper and electronic invoices. Duplicate invoices were automatically detected and flagged for review, saving time and preventing duplicate payments that require reconciliations.
• Automatic routing for approval: Automated routing of the invoices to departments for support based on the integrated workflow.
• Perfectly preserved audit trails: All approval and payment details were automatically stored in one central repository that authorized users can access at their convenience.
• Vendor Communication: Enabled communication with vendors and customers to automatically generate purchase orders (POs) for each new order, electronically validate and accept invoices, approve requisitions, track goods received and pay invoices on a timely basis.
• Notifications: The system was designed to alert to time-sensitive circumstances such as pending renewals and can create approval timers and set up alerts.
• Customized workflow: A determined route that invoices follow with proper authorization.

    Results – 

• Accurate payment cycle: Improvement in the delivery reception process and payment cycle due to quicker processing of documents.
• Regulates workflow: The workflow enhanced the reporting, budgeting, and auditing far more efficiently and accurately.
• Improved Business Relationships: A slow cycle time strains vendor relationships. Automated cash lays regulate the payments on time.
• Integrate with existing financial system: Seamless integration with all major economic systems, databases, and enterprise resource planning systems avoided switching back and forth between applications or re-entering data into multiple systems.
• Better Insight and Transparency: Greater visibility into the Accounts Payable process gave accountants and business leaders keen insight.
• Information security: Documents are securely stored in compliant archives that meet business regulatory requirements.
• Time-saving: It made invoice processing and approval exponentially faster.
• Reduce payment error: It virtually avoided manual mistakes like an overpayment, duplicate payments, and wrong data entry.
• Increased productivity: The AI Automated process eliminated the number of human touches per invoice, reducing the time the staff spent processing each invoice.
• Faster cycle times: It positively impacted the invoice cycle time, data capture, invoice validation, and matching.