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Understanding Electronic Data Capture
Electronic data capture technology is gaining traction in the enterprise space. Most modern Accounts Payable (AP) departments in large organizations have embarked on a journey to transform their AP processes with technology, and electronic data capture is an important first step.
While large AP departments are employing Internet-based and electronic data capture, many still rely on paper-based invoice processes. According to the Institute of Financial Professionals 2013 AP Automation Study, paper invoices represent more than 90 percent of the invoices processed by roughly 28 percent of enterprise respondents. And other industry research suggests two-thirds of invoices arrive from vendors on paper, even though most modern AP departments accept electronic payments.
At Direct Insite, we deliver cloud-based e-invoicing solutions that automate AP, Accounts Receivable (AR) and Payments processes, including electronic data capture. Our clients include Global 3000 companies and large organizations, such as Siemens, HP and IBM.
If you’re wondering more about electronic data capture, here is a list of frequently asked questions explained:
What is Electronic Data Capture?
Many AP departments, especially those that process high volumes of invoices, have started scanning paper invoices via electronic data capture software solutions. However, an overreliance on paper is still apparent in most AP departments, which presents the biggest challenge to efficient AP workflow and invoice management.
As organizations transform their AP processes to take advantage of huge gains in efficiency, insight and cost-optimization, scanning and electronic data capture is the first phase of an end-to-end AP automation strategy. Companies use electronic data capture to eliminate paper from invoice processing, and then utilize a supplier portal or e-invoicing solution.
Why is Electronic Data Capture Important?
By removing paper from the invoicing process, companies reduce reliance on manual business processes that cause inefficiencies and bog down AP departments. Electronic data capture represents a significant potential for cost savings, workflow acceleration, increased accuracy, and improved compliance and reporting.
How Can Electronic Data Capture Benefit my Organization?
Converting paper transactional documents to digital with electronic data capture yields several benefits. When AP departments are less paper-based, they are less prone to the pitfalls associated with handling mass quantities of paperwork and have access to searchable archives of AP history on the back end.
Aside from the apparent benefits of going paperless, such as reducing corporate environmental impact, forward-thinking organizations can glean valuable insights about operational spend, supplier relationships, corporate discounts, and business cycles and trends. Electronic data capture gives management greater visibility and control over corporate spending patterns, improves operational efficiencies and ensures compliance with sophisticated regulations.
How Do I Implement Electronic Data Capture in my Organization?
If you are interested in leveraging electronic data capture in your organization, it is important to find a strong technology partner with deep industry experience. Direct Insite provides best-in-class self-service solutions to Global 3000 vendors and suppliers. To learn more about Direct Insite’s end-to-end AP and financial supply chain automation solutions, call us at 954-510-3750.