Start small - make it big

It is usually possible to improve the existing system and start digitization at the same time.

One example is the interaction with SAP and the associated increase in efficiency, preparation for comprehensive digitization and integration with an Enterprise Information Platform.

According to a recent study conducted by IDC on behalf of SAP, two-thirds of small and midsize UK companies are using technology to improve business processes or implement digital transformation.

However, most of the companies surveyed also said they were not fully exploiting the potential of new technologies to achieve digital transformation.

The use of new technologies is justified by a wide variety of objectives, such as greater agility or better integration of mobile employees.

In many companies and institutions, accounting is considered the natural starting point for entering the digital transformation. This is especially true for the accounts payable processes in a typical SAP system.

Accounting staff workflows are still very paper-heavy. In most cases, the processes are predominantly manual, time-consuming and cause corresponding delays.

In the process, employees must process and file large volumes of paper. These processes are inconsistent, slow, and dependent on numerous approval steps.

Inquiries with suppliers cost valuable resources, which are at the expense of invoicing.

Many chief financial officers recognize high accounting operating costs and the impact on cash management. Often, approvals cannot be tracked systematically.

Employees are frustrated by processing procedures that are cumbersome and perceived as old-fashioned. In short, these processes are not deeply enough integrated into the SAP system.

The ideal solution to avoid such inefficiencies is to implement an end-to-end solution that combines the SAP solution with an Enterprise Information Platform.

Such a solution should be able to process all data sources: Images, invoices and data.

Workflows for exceptions, approvals and invoice preparation should also be implemented. And the solution should be deeply integrated with the SAP system. It thus facilitates communication and data exchange between the two systems, with the result that accurate and up-to-date information is always at hand when needed.

In this end-to-end solution, formerly manual processes are fully automated. All information is available electronically and accessible via the SAP interface.

This makes it easier to extract data and reconcile it with the SAP system. Thanks to workflows, reporting and dashboards, accounting managers spend less time processing exceptions.

Approval times are shortened drastically. Processing of exceptional cases becomes much easier and invoices can be created automatically.

The Enterprise Information Platform also integrates further input from the accounting system. For example, the software can automatically validate a purchase order in the ERP system, detect duplicate invoices, and identify quantity errors and unit price discrepancies.

Since the keywords for suppliers, supplier numbers and product descriptions are automatically matched, other possible errors are eliminated.

Other manual processes can also be automated with this accounting solution. These include, for example, the monthly creation of new suppliers or changes to bank details.

The optimization of an SAP system also includes the automation of approval processes.

Until now, too much time was spent on paper, signature lists and stamps. This is where digital features, such as reporting dashboards for accounting only, are recommended. These dashboards allow managers to see how many transactions are still waiting for approval.

Dashboards open up external access for customers. Other stakeholders could also use the portal for interactions. Invoices can be submitted through it, processing status can be tracked accurately, and documents and forms can be uploaded easily.

All functions and features contribute to the acceleration of processes in companies or institutions and support the digital transformation.

The error rate drops, invoices are not lost and input errors are avoided. In short, the accounting system saves money.

So digitization can certainly start "small" - and achieve great results right from the start.