If your accounts payable department is using document management as a way to archive and/or automate the processing of invoices, you can use the same system in human resources to automate new employee on-boarding and to make employee records instantly available – all for an incremental expense, rather than making a significant capital investment.
Similarities Between AP & HR
Just as it effectively manages invoices and correspondence, your document management system is ideally suited to manage employee records and their retention schedules, while also ensuring compliance with document retention laws, HIPAA and local requirements like CMR 17 in Massachusetts.
Specifically, CMR 17 requires secure access defined at the document level, encryption and tracking via access logs. Most of today’s leading document management applications provide this functionality, such as PaperVision (software) and ImageSilo (cloud) from Digitech Systems.
The table below provides a more in-depth comparison between how document management is used in AP and HR:
|Capability||Invoice Processing (AP)||Human Resources (HR)|
|Workflow||Invoice routing for review and approval||New employee on-boarding and form collection|
|Forms||New vendor signup||Benefits enrollment|
|Document Retention||Keep financial records for 7 years||Archive employee records from 3-30 years|
|Document Scanning||Scan incoming invoices and correspondence||Scan new employee forms and I-9s|
|Optical Character Recognition (OCR)||Straight through invoice processing||Resume search and retrieval|
|HIPAA Compliance||Secure access to invoices for employee medical services||Secures access to any document with employee health information|
Taking the Next Step
Especially when combined with workflow automation (frequently an add-on module), document management can help make information instantly accessible and automate HR processes just as it does today for your invoices. So in addition to cutting invoice processing costs and taking advantage of early payment discounts, you’ll be able to on-board new employees faster and never lose a document again.