Automated invoice processing is the process of extracting data from invoices and storing the all data into the ERP System to process the payment in just a few clicks.
This is a complete article on Automated invoice processing.
Here, you will know about,
- What is Automated invoice processing
- Benefits of Automation in Invoice Processing
- How Does it Work?
- Docextractor for Automated Invoice Processing
- And, lots more
So, Let’s get started.
What is Automated invoice processing?
An automated invoice processing system helps businesses to automate the account payable process and the payment of supplier invoices. This Automated Invoice Processing Software is extract data from the bill and simultaneously stores and updates data into your ERP or accounts payable system, which it can allow and execute payment within a minute. Some are the best practice of Automated invoice processing includes Data entry, Transferring digital payments, Streamlining workflows, Price Checking, Managing orders, and many more.
In the Traditional Method, the Accountant of the company or small business, need to enter invoice data timely, create paper invoices, match orders, and many more hand task. It is old school method that takes lots of time,
To solve this issue, automation of the AP process has come. Automated Invoice Processing is the next level of Invoice Data Processing. The accountant’s department of the company or business can simplify time-consuming systems with AI and ML. Nowadays, invoice processing in the digital method is one of the best business growth practices to do.
Why is automated invoice processing necessary?
To manually process a single invoice and clear the payment to the receipt owner, takes 20 to 30 days. And, while there are many Invoices, it takes many times and effort to process them. As a result, it is a huge loss of company time and resources:
- According to one study, the threat of fraud and misuse of resources by employees in most organizations with over 74% being the target of payment scams in 2020.
- In addition, Manual invoice processing runs a high risk of errors, Payment cutting, and double payments.
Both and many more factors result in delayed invoice processing and it not only making a bad relationship between supplier and buyer and also creates a bad reputation for the company. This is why you need to implement Automated Invoice Processing Software in your Business so that the entire process is accurate and error-free.
How Does Automated Invoice Processing Work?
In a Traditional and old-school method, When the accounting department of the company receives a supplier’s invoice, that time Invoice Document Management Process Starts. Then, they matched and approved it Generally, if the payment amount is in big digits, it takes more time to get approval.
From there, it must be entered into the system where it is “posted” for payment. Then the payment is issued. There are various steps to process the invoice, depending on the company. Sometimes, it consumes much time when there are multiple invoices.
In New Digital Automated Invoice Processing Method, it is scanned, extract, and save into the ERP system. Automatic Invoice Capturing saves lots of time than manual entry.
Invoice automation software extract and next convert the data into a text document and save it into the Accountant system which remembers which fields to capture and register in the ERP system. These are the Data that software can collect purchase amount, supplier name, quantity, Date, and many more.
Benefits of Automated Invoice Processing
Implementing Automated Invoice Processing Software in your Business can boost the workflow of the Account Department which also makes a good relationship between the company and the client. The benefits are:
- Reduces duplicate invoices and payments.
- Speeds up the approval process and reduces processing time.
- This software saves the extra manpower cost so that they can work on more business-critical tasks.
- It Reduces the Error rate with Less Manual Data entry.
- Employees are relieved of tedious tasks and vendors have a more transparent process.
- It processes the payment in full security without making late payments and gives early-payment discounts.
Why You Should Use Automated Invoice Processing Software?
1. Unified Console
Accounts Payable Automation aims to streamline invoice processing, and it does so by putting all features at your fingertips through a unified platform. Top Platforms like Docextractor are typically operated from a single dashboard that provides management capabilities for buyers, sellers, invoices, payments, financial data, etc
- One time invoice
- Recurring billing
- Membership Management
- Metered, volume, and tiered charging models
- Real-time updates of payments
2. Minimize the Error
Manual invoice Processing has faced many errors and mistakes due to factors like lack of concentration. According to a Payable Insights Report, more than 23% of surveyed companies have data inconsistencies and pain points in invoice processing. So, it is important to understand the matter and resolve it by using Docextractor.
3. Customization and Monitoring of the Segment
Automation software will enable the customer to create custom workflows with their appropriate invoice. It reduces disputes and exceptions and smooths the overall process.
In addition, you can easily monitor expenses and know what, when, and where is being spent on the software. It improves the transparency of invoice automation. Run insightful reports in real-time to enable faster business decisions.
4. Make a Good Supplier Relationship
Business is run with Relationships. By automating the workflows, the entire process is easier for employers to meet deadlines. It has been a boon to relationship management in every job role and industry. Invoice processing software gives suppliers clear data on Payments, orders, invoices, and real-time updates. In this way, there are no conflicts between the company and its suppliers, and their relationship is maintained in good spirits.
Why Docextractor for Automated Invoice Processing?
Dcextractor is an AI and ML-based OCR Software that helps businesses around the world automate manual extraction. Our Automation software constructs invoice processing and Data Extracting in a hassle-free process.
The automated invoice processing solution of Docextractor are;
- It has an inbuilt template and the option of customizing the template, format, layout, and, invoice style.
- It provides unmatched 90% plus data extraction accuracy for every key and value.
- It speeds up the workflow of the Accounts Team of the company.
To sum up, there are many benefits of Automated Invoice Processing over using Manual Data Entry. This helps to speed up the workflow of the Accounting department. The faster an accounting department adopts this digital process, the easier it will be to focus on growth. I hope you have got in-depth information on Automated Invoice Processing from this article.