Automated Invoice Processing
Switching to Automated Invoice Processing
Invoice processing comprises a series of steps associated with the management and handling of invoices. This process typically starts with the arrival of the invoices in the business organization, then they are transferred to the accounts payable department, classified into predefined categories, matched against purchase orders, if necessary, followed by validation, approval, and entry of the invoice data into the organization’s accounting system.
Manual invoice processing
The invoice processing steps can vary across different companies – depending on the size of the organization, the type of invoices, whether the invoices are electronic or physical, etc. In some cases, the invoice handling process exceeds fifteen different steps before the invoice can be considered completely processed, which can be inefficient and very time and resource consuming. Usually the larger the company, the more complicated the invoice processing, and certain types of organizations also typically deal with many more invoices than others.
Switching to automated invoice processing offers many advantages, including faster processing times, minimizing error rates, improved efficiency and reduced costs. Generally, the more invoices you are processing, the more you will benefit from automation. How does this work?
Automated invoice processing involves the implementation of specialized software that can automatically perform many of the tasks associated with the process. Typically, these solutions perform scanning (for paper invoices), data extraction and validation, and transfer of the processed invoice data into the accounting system.
Automating your invoice processing is an investment that will return in the long run. You will need to consider your costs per invoice and determine how much you will be able to save through automating the process. Additionally, the implementation of invoice automation software will require changes in your staff management, as well as time to adopt and get used to the new routine.