Key Benefits Of Using Invoice Processing Automation For A Real-Time Solution
Only 31% of organizations have automated their Invoice operations, according to a study done in 2020 by Ardent Partners, and 28% had only mild automation. On the other side, 40% of enterprises lacked any form of automation. Therefore, businesses still have a way to go before realizing the full potential of invoice processing automation.
Greater efficiency and precision, as well as all the cost savings that go along with them, are some of the benefits of invoice processing automation. Companies that are slow to adapt risk falling behind since “a digital transformation is no longer an option. It is a must-have.”
Let’s check out why!
What is invoice processing automation?
The process of invoice processing automation involves enabling a software tool to read and analyze incoming invoices. It also stores the analysed data in an accounts payable system, compares it to purchase orders and receipts generated in relation to the invoice, processes the invoice, and releases funds to the appropriate parties.
When you automate invoice processing, it speeds up the processes compared to manual processing because it handles all standard accounting procedures. These include matching prices, placing purchase orders, and entering data into an ERP system to complete payments. According to research, automation can increase productivity by 73%.
Benefits of invoice processing automation
1. Shorter processing time
The shortened processing time is one of the main benefits of invoice processing automation software. In comparison to the manual method, the automated option uses less time-consuming procedures for processing invoices.
2. Decreases costing
The cost of processing invoices is reduced through invoice processing automation. Thanks to automation, a single invoice can be processed for as little as $1. To boost profitability, the company can minimize operating expenses as costs fall off dramatically. Additionally, as the invoicing is timely documented, the likelihood of a late payment fee decreases.
3. Better visibility of invoices
Regardless of the number of invoices generated, it becomes easier for you to track invoices with the invoice processing automation system. You may quickly verify your bills for inconsistencies and incorrect data, then make the necessary corrections for accurate billing.
4. Helps stick to compliance standards
Invoice processing automation simplifies auditing your company and ensures it complies with compliance standards. Tracking invoices and comparing them to purchase histories is made simpler by automation for both your organization and the auditor. Additionally, automation dramatically lowers the risk of misfiled invoices, lost or missing invoices, and human mistakes.
5. Minimizes error
Invoice processing automation reduces the likelihood of lost bills, human mistake in calculating invoice amounts, and invoice misfiling. After all, human error is inevitable. Automation, on the other hand, avoids these potential hazards of manual invoicing and makes the entire process more efficient and accurate. As a result, your accounts and finance teams spend less time verifying data and more time analyzing it.
6. Improvement of supplier relations
Many invoices go unpaid, which delays payment and hampers your organization’s name. And it can further jeopardize your relationship with the suppliers. When you integrate invoice processing automation software, you can make payments on time, and you can be notified whenever you fail to do so.
7. Easy customization
Software for automated invoicing is adaptable and can be tailored to your company’s specific invoicing requirements. You can grant numerous accesses to the various staff members in your accounts department, allowing them to access the invoices as necessary for drafting, auditing, or payments. In addition, you can personalize the workflows based on your organization’s unique needs.
What features should you be looking for in invoice processing automation software?
Here are some key features to look for when you decide to implement automation software.
- It should help you integrate an automated OCR engine to extract text from text-based PDF files and scanned invoices.
- Advanced picture pre-processing should provide higher data extraction accuracy (deskewing, noise reduction, and contrast correction).
- Should transform multipage tabular data from PDF bank statements into excel or JSON for later processing.
- To extract data in the correct format, it must help apply filters for dates, numbers, and other regular expressions.
- Should have pre-sets for processing invoices and extracting header data (number, date, totals, and tax amounts).
- Help send emails with attachments automatically to an email account and extract text data and attachments from emails.
- Should provide built-in APIs and webhooks to transfer extracted data to any other program.
- Importing a document, processing it, extracting all of its data fields, and sending the information to other apps must take less than a minute.
- You should be able to drag and drop files from your local disc to your computer to upload them in groups. It should help cloud connectors or API to have your papers imported automatically.
- It must aid in transforming PDF to file formats for CSV, Excel, JSON, and XML so that you can download extracted data in the desired format for any date range.
