The Accounts Payable team in Shared Services SA has made great strides in its paperless payments initiative. Over the past year, more than 4,000 vendors have been contacted via phone, email or letter to make the transition from receiving payment via cheque to electronic funds transfer (EFT).
In July 2017, 96.3% of invoice payments were made via EFT compared with 88% the previous year. This equates to a 150,000 reduction in the number of cheques issued. There has also been a corresponding 163,000 per annum reduction in the printing and posting of remittance advices by migrating to digital distribution.
Another component of the paperless payments initiative is to increase the proportion of invoices Accounts Payable receive electronically. Approximately 84% of invoices are now sent in via email compared with 68% last year. This translates to 208,000 fewer paper invoices received annually.
The efforts undertaken during 2016-17 have resulted in:
- faster turnaround times for vendors to receive payment
- less administrative effort and cost
- a reduced carbon footprint associated with the reduction in paper use.
Accounts Payable would like to thank client agencies for their contribution to this initiative, which directly supports the Premier’s Digital by Default policy.
Over the coming months, the initiative will continue to progress, further reducing invoice payment cycle times and paper usage.
On average, Accounts Payable processes more than 2.3 million invoices on behalf of South Australian Government agencies each year.