Automated Invoice Processing Software: What is it and How Does it Work?
Automated invoice processing software can be used to do everything from extracting invoice data to adding it to the records of the accounts payable system to processing the data of invoices for accounts payable. With such technology, any company can save a lot of time, effort and money on the invoicing process for their AP department.
While traditionally, companies have relied on manual ways for invoice management, newer technology brings in the scope for automation. With this, there is a lot of ways in which the company can increase the efficiency of its AP department. But before that, let us understand what automated invoice processing actually is and how it works.
What is automated invoice processing?
The process of automation has been revolutionizing every aspect of business processes, including invoicing. From its arrival to the post, invoice automation software can do everything for your accounts payable department.
This automation speeds up the entire workflow of your AP department. The work that would need hours to carry out manually can be finished in a matter of minutes when done using a computer.
Smart invoice management software can do everything from extracting relevant data from invoices to scheduling payments in a completely automated manner.
How does automated invoicing work?
Traditionally, the process of invoice management starts when the AP department of a company receives an invoice from a supplier. Here, the process of matching and approving the invoice takes place. In the case of larger payouts, approval from higher authorities is needed.
After this, the invoice data is “posted” in the company’s system for payment which ultimately allows payment. In all, this process takes about 15 separate steps. This can become an exceedingly tedious process with multiple invoices and larger orders.
When you use accounts payable automation solution in its place, you save a lot of time and effort. Once the invoice is received, it is scanned and the system extracts relevant information and feeds it into the digital accounting system. In this way, you cut down on many hours of manual data entry. The software then converts the data into a document that is text-searchable.
You can map the invoice data in the automated system so that it learns the fields which need to be captured and registered in the ERP system. This can include information like the purchase amount, supplier name, quantity, etc. This data is then sent to relevant employees for approval.
Benefits of automated invoice processing
There are multiple advantages of using automated invoicing processes. You can save up to 80% money in operational costs by automating the whole thing. Some other benefits include:
- Since the whole process is automated, there is no room for human error which means more accuracy in your data.
- The process of approval and processing of invoices is also quickened with automation.
- By saving your staff’s time, you can save more on labour costs and have them work on more important tasks.
- The whole process becomes more transparent for you as well as your vendors.
- Automated processing allows you to make early payments so you can get discounts and save on late payment fees.
- The accessibility of your invoicing data increases with digitalization so you can monitor and manage everything from anywhere, anytime.
Software solutions for automated invoice processing
Automation has revolutionized the invoice processing system completely. With major cost and labour savings, the technology has restructured the work of AP departments across the world.
But there are many different types of invoice processing applications. Here are some of the most common software solutions that you can consider for automated invoice processing:
- Unified Console – A unified console is an all in one solution that puts everything at your fingertips. You can manage all the vendors, buyers, suppliers, finances, etc. from one single dashboard.
- Customization – You can also get solutions tailor-made for your business that include everything you need.
- Relationship management – With invoice processing software, all the stakeholders can access all information regarding invoice management conveniently.
- Monitoring and reporting – Features of machine learning do an excellent job of providing insightful reports from your data which can be easily monitored.
If you think automated invoice processing is for you, contact our team today.