Industry: Packaging
Background:
Ficus Pax, a leading high-precision packaging manufacturer with operations across multiple branches in India, faced significant challenges in managing their accounts payable (AP) processes. Relying on a decentralized system, manual invoice verification, and outdated accounting methods, they found themselves struggling to keep up with the growing complexity of their operations. This led to delays, inefficiencies, and higher costs. Seeking a solution to streamline their processes, Ficus Pax adopted IQInvoice, an intelligent accounts payable automation platform.
Challenges:
1. Decentralized Accounting System:
Ficus Pax operated across 11 branches in India without a centralized accounting system. Synchronizing financial data manually across branches took more than a week, leading to delayed reporting and decision-making. The lack of real-time access to consolidated financial information created inefficiencies in their accounting processes.
2. Manual Invoice and GRN Verification:
The purchase manager had to travel frequently between branches to manually verify invoices and goods received notes (GRNs). This travel not only caused delays but also added to operational costs. The manual process was time-consuming, prone to errors, and inefficient.
3. Delay in Accounting Updates:
The manual processing of invoices delayed their entry into the ERP system by 4 to 7 days. This lag created bottlenecks in GST filing and led to employees working long hours to meet regulatory deadlines. The delays also impacted cash flow management and vendor payments.
4. GST Mismatches:
Errors during the manual upload of GST data to the GSTIN portal were frequent due to mismatches in invoice details. This led to compliance risks, additional time spent on corrections, and potential penalties from regulatory bodies.
Solution:
To overcome these challenges, Ficus Pax implemented IQInvoice’s automation platform, which provided an integrated and intelligent solution for their accounts payable processes.
1. Centralized Accounting System:
IQInvoice connected all of Ficus Pax’s branches to a centralized accounting system, allowing real-time synchronization of financial data. What used to take over a week to consolidate now happens within minutes. This system enabled the finance team to access accurate, up-to-date financial information, improving their reporting and decision-making capabilities.
2. Automation of Invoice and GRN Verification:
With IQInvoice, all invoice and GRN data is now available remotely, eliminating the need for the purchase manager to travel between branches. This automation reduced travel costs and saved valuable time, allowing the purchase team to focus on core business activities. Verification and approval of invoices became seamless and efficient.
3. Real-Time Accounting and ERP Updates:
IQInvoice ensured that invoices were processed and approved on the same day, leading to timely updates in the ERP system. The automation enabled faster invoice processing, which ensured GST filings were always completed on time without the need for employees to work overtime. This improved overall efficiency and compliance.
4. GST Validation and Error-Free Filing:
IQInvoice introduced robust GST validation checks before data was uploaded to the GSTIN portal, completely eliminating errors and mismatches. This ensured smooth compliance with GST regulations, reducing the risk of penalties and freeing up resources previously spent on resolving errors.
Results:
The implementation of IQInvoice delivered significant improvements for Ficus Pax
– Increased Efficiency: The time taken to process invoices dropped from 10 days to just 2 days, allowing for faster vendor payments and improved cash flow management.
– Cost Reduction: Ficus Pax saw a 60% reduction in their processing costs due to the elimination of manual processes, travel expenses, and overtime work.
– Resource Optimization: The number of employees managing the AP process decreased from 10 to just 4, freeing up resources to focus on strategic initiatives.
– On-Time GST Filing: With automated, error-free GST validation, the company achieved timely GST filings without the need for employees to work extended hours.
Testimonial:
COO of Ficus Pax, shared her experience with IQInvoice:
_”IQInvoice has truly revolutionized our accounts payable process. Managing over 30,000 invoices once seemed like an overwhelming task. Thanks to their intelligent OCR and robotics, we’ve seamlessly transitioned to automatic invoice processing, reducing our processing time from 7 days to just 1 day. The efficiency gains have been incredible, and we’ve cut our processing costs by an impressive 70%. IQInvoice is a game-changer for our high-precision packaging operations!”
Conclusion:
By adopting IQInvoice, Ficus Pax successfully transformed their financial operations, achieving greater efficiency, cost savings, and compliance. The automation of accounts payable processes not only reduced operational delays but also positioned Ficus Pax to continue growing and thriving in the competitive packaging industry.