Every Company Should Opt For Automate Invoice Processing: The Top 5 Reasons
Invoice plays an important role in every business and companies around the globe. Every day chunk of invoices are generating. As the process of purchasing materials and goods are updated and streamlined, this volume will enhance day by day. A plethora of studies has claimed that the volume of invoices generated is likely to quadruple over the next decade. That’s why companies are adopting invoice automation software solutions that will automate invoice processing and will help the companies to manage their cash flow in a better way.
The benefits of automated invoice processing are unfathomable. But many companies are still hesitating to take this change into automatization. In this article, we are going to portray the top five reasons why companies should utilize invoice processing software to gain a competitive advantage.
This Saves a Lot Of Time
If you generate an invoice manually, then it takes a lot of time and the process involves like this,
- The supplier generates an invoice for the work they have done
- Then, the supplier needs to send the invoice to the purchaser
- The invoice is printed and is ready to dispatch for approval
- The invoice data is manually entered into the purchaser’s ERP system
- The invoice data is sent to the approver for review
- The invoice is approved
Now, if there is any inconsistency or issue with the invoice, both purchaser and the supplier need to work together to solve the issue for approval. But if you opt for automated invoice processing, the process looks like.
- The invoice is generated and submitted digitally via an invoicing platform to the purchaser.
- The invoicing platform automatically captures data from the invoice.
- Through the correct approval routing procedure, the platform inevitably processes the invoice.
- After approval, the payment is dispatched to the supplier
Several researchers have also claimed that it takes companies an average of 16.6 days to process an invoice manually, but on the other hand, it takes only 3.6 days or less with invoice automation.
Cost-saving Is Expected
Since you are opting for automating invoice processing, hence, you can reduce the amount of time it takes to process invoices. Now, you can look thoroughly at your cash flow and make better decisions. Invoice automation also saves your money in multifarious ways.
- Now, you need lesser labour to complete your AP process
- Reducing paper-based works, including printing, mailing, and physical storage
- Extirpating the late and duplicate payments
Several studies have also claimed that businesses that use automated invoice processing, need to pay an average of $2.94 per invoice. On the other hand, this cost may go up to $15.96 per invoice for companies with no automation.
Gain a Deeper Look Into Your Cash Flow Management
With invoice automation software, you can look at a deeper picture of your company where it stands in terms of cash flow management. Now, you have an idea of your total available cash flow and also how it is affected and distributed throughout the year. With this cash flow, you can do your business in a better way.
- Invest in innovation
- Hire and train employees for various roles
- Expand your product/service offerings
- Reinvest in other departments that need improvements
If you generate invoices manually, human errors will be inevitable. According to Billentis, 20% – 30% of all invoices “have to be treated as exceptions in one form or another,” and inaccurate invoices are responsible for 16% of late payments in the United States and 15% in Western Europe. With automated invoice processing software, you can enhance the accuracy of each invoice, your consistency across invoices, and the entire process control. Now, your accounts and finance employees will focus more on other tasks. This will improve the overall efficiency of the employee.
Reduce Stress With Automated Compliance
Invoices play a pivotal role in your finance and tax compliance. During the audit process, your auditor needs to know what things you purchased in what quantities and all other details. This ensures that you are not hiding anything for your business. But paper-based invoices are easy to lose or damage and this can hinder your compliance requirements. On the other hand, invoice processing automation helps you to automate compliance by providing all information to the auditors through a digital portal. According to the World Bank, invoice automation strengthens your tax compliance and legal security needs and at the same time, it reduces related costs by nearly 40 per cent.
HubBroker offers invoice automated software solution PDF2XML that collects computer-generated PDF files sent by customers or suppliers and converted into a unique format and are then imported directly into your ERP system.
To know more about HubBroker and its services, please visit the official website of the company.