Manufacturers have always had to deal with complicated accounting processes, but they've become even more of a challenge because the pace of doing business has picked up so drastically.
For distributors, invoicing and other accounting processes can be a real nightmare. Documents get lost in the mail relatively frequently, leading to late payments and angry clients. On top of that, having to go through piles of stored files and archives to comply with audit requests causes an uncountable number of headaches.
Automating processes can make an enormous difference
With the rise of technology innovations, suppliers expect to receive invoices, among other files, faster than ever. While these new technologies have led to challenges, they have also equipped manufacturers and distributors with the tools to respond.
A recent Apptricity blog post suggested that automating certain processes, such as enterprise resource planning (ERP) systems, can benefit manufacturers tremendously. From an accounting standpoint, this could improve a number of functions, including:
- Invoicing: With everything stored into a streamlined process, the invoicing is far simpler and requires fewer steps. In addition, lost files don't even pose an issue.
That way, when someone wants to search for a specific document – or even certain information within a file – he or she can do so instantaneously.
- Visibility: Not only will more employees have access to important information, but certain software allows suppliers to track the standing of their invoices.
- Better search functions: If someone wants to locate a specific item, automated systems typically come with improved search functions.
Sage ERP 100 offers enhanced search capabilities
Because manufacturers have such little time to spare, wasting hours searching for documents can be extremely damaging.
It might shock decision-makers to learn how much time employees spend daily, weekly and yearly simply looking for files. In response to this issue, Sage 100 ERP's recently deployed software comes with an improved search tool, which enables people to peruse master files and inventory far more easily.
"We believe that the same should be true of an accounting or ERP system," Paul Ziliak, co-founder of xkzero. "We have found studies indicating that full-time users of traditional ERP systems may spend as much as 25% of their time retrieving basic data from their systems."
In an automated ERP system, lost invoices no longer present a major disruption for manufacturers. Rather than digging through piles of documents and having to re-mail a file, they can simply search for the necessary document and resend it electronically.