Invoice Processing Automation 101: Know What It Is And How It Benefits Your Organization

An invoice processing automation solution assists organizations in streamlining their accounts payable operations by automating procedures like data extraction from invoices, data validation, and data entry into a database for further processing and analysis. When done manually, it is time-consuming and error-prone. However, invoice processing automation enhances data quality, accuracy, and processing turnaround times for invoices.

The automated invoice processing system aids in streamlining the accounts payable procedures. It simultaneously updates the data in your enterprise resource planning (ERP) system to preserve the records digitally. Not only this, the errors are reduced as compared to when humans perform the task. 

Throughout this article, we cover how invoice processing automation helps your organization. 

Let’s start with their benefits first.

Benefits of an invoice processing automation solution

1. It provides a unified platform

Invoice processing automation solution seeks to simplify the process of processing invoices by placing all the features at your fingertips via a single platform. It enables users to quickly access and control all necessary functionalities, like recurring billing, single-time invoicing, subscription management, and more.

Businesses acknowledge that human data entry is time-consuming and inefficient and actively seek ways to improve it. Automated data input accomplishes that by slashing the time needed to process the bills by ten times what it would take to process them manually.

2. It reduces error and enhances security

Due to factors including fatigue, copy-pasting mistakes, and lack of concentration, manual processing of invoices is prone to errors. Additionally, one of the main problems with invoice processing is data discrepancies. Security issues regarding data fraud are also made possible by a lack of active supervision.

An invoice processing automation solution can help ensure that the data is correct and error-free. The automated system compares the data from the supplier’s invoice with the company’s records to decrease the likelihood of fraud.

3. It helps trace invoice records

The invoices are typically kept in files or folders that are untraceable and inaccessible if necessary after the payment has been completed. On the other hand, automated invoice processing solutions systematically use an Electronic Document Management System (EDMS) to store the data in a specified central digital database.

In addition to creating an audit trail, such storage also makes it simple to retrieve the invoices in an emergency. Additionally, it makes it very simple to trace all the paperwork, reducing the possibility of lost or missing bills.

4. It helps with monitoring invoices

It is a challenging task to maintain manual invoice records due to their extensive and illogical organization. However, when invoice processing automation is done, the processed invoices are transparently kept in a centralized database that is simple to access. This makes it possible to track spending in real-time and readily report any discrepancies.

5. 5. It helps with early payments and enhanced supplier ties

Employers can quickly meet deadlines by streamlining the process and enabling invoice processing automation. Most suppliers offer early payment discounts, so the benefits can be obtained by making sure that payments are made on time. Furthermore, on-time payments satisfy the suppliers, and software for accounts payable typically includes a platform that enables suppliers to receive real-time information on the status of their bills. 

6. It helps automated invoice routing

Depending on the size and kind of payment, a manual invoice that has been processed is sent to various parties for approval. However, a lack of a clear channel might cause additional delays and, in some circumstances, even the loss of invoices.

Users can quickly set up the appropriate procedure to ensure the invoice gets to the correct approvers through the invoice processing automation software. Users are reminded of pending invoice approvals via personalized alerts, guaranteeing that the same are approved promptly.

How can an invoice processing automation system help?

• Invoice processing presets

Numerous invoice processing automation programs have presets that may be used immediately and without training to process invoices and extract header information.

• Integrate with API

You can integrate your invoice processing automation system with already existing software with API.

• Fast processing

Importing a document, processing it, extracting all of its data fields, and sending the information to other apps takes less than a minute.

• Upload in batches

Drag and drop files from your local disc to your computer to upload them in groups. You can also use our cloud connectors or API to import your papers automatically.

• Download the data easily

An invoice processing automation system converts PDF files into CSV, Excel, JSON, and XML formats. You can download extracted data in the desired format for any date range.

In conclusion, the goal of an invoice processing automation system is to remove the complexity and high expenses associated with conventional AP procedures. Everyone benefits from that, not just the financial teams.