As cloud-based services are growing robust and widespread, invoice processing automation has presented many businesses with new ways to cut costs. Nowadays, many companies are moving towards the invoice automation process.
However, it is a method of using automation software to extract invoice data, populate the information and process invoice data for accounts payable. It is one of the effective ways to automate your invoice processing that will save time and money for a company’s AP department.
The tools used for invoice automation are available as SAAS subscriptions that can ease or eliminate data entry.
Moreover, it will also help you manage and control expenses through improved visibility. Below, we will show how invoice processing automation can save you money.
What is invoice processing automation?
Before we get on how invoice automation will save you money, we want to show the exact meaning of this term and how it works.
Invoice automation processing is the process that involves using automation software to extract invoice data, populate the information and process invoice data for automated accounts.
It includes automation of;
- Data entry
- Matching price
- Transferring digital payments
- Streamline workflows
- Managing purchase offers
How does it work?
The responsibility of invoice automation depends on the accounts payable. Previously, the traditional method of collecting invoices was a time-consuming system that included entering invoice data, creating paper invoices and matching purchase orders.
It was one of the bloated processes that perpetuated an inefficient environment. That is the only reason the invoice processing needs some automation, and automation is the next level of manual invoice processing.
With the help of artificial intelligence and machine learning, a payable department can streamline the time-consuming system. While automation process, when the invoice arrives, it is scanned and fed into the digital accounting system
It is going to cut hours of manual data entry. Then the invoice automation software will convert the data into a text-searchable document. Now, you can extract and map the invoice data in the automated management system. Lastly, the invoice data is forwarded to the appropriate parties for renewal and approval.
5 Ways Invoice Processing Automation can save you money
In this section, we will show you different ways how automated invoice processing can help your business to save money and time.
1.Reduce manual processing of paper invoices
An automated invoice service can help you eliminate inefficient, wasteful paper handling and front-end data entry without forcing your suppliers to change their current processes. Your invoice can be faxed, emailed or submitted electronically, depending on the service.
By using scanning services, you can even turn your previous paper invoice into electronic images. That’s something fantastic!
2.Lower processing costs through increased efficiency
If you want to approve your invoices, you have to go through many more pressing duties. In this case, invoice processing automation comes into action, and it can help you quickly review and approve invoices or accounts payable using a web browser, mobile app or email.
3.Capture cost savings through increased compliance
Invoice automation will also help you analyze expenses to identify and eliminate errors such as overpayments and duplicates. Suppose you are running a company that deals in multiple currencies and languages. In that case, this detailed data analysis will be helpful for you by facilitating compliance with international taxes like GST, VAT, FBT, PST and HST.
4.Reduce late payments and capture early payment discounts
Invoice automation will provide your invoice managers with greater expense visibility, making it possible to manage spending more effectively. Moreover, it will also help them to identify opportunities for savings and capture early-payment discounts.
5.Offer an affordable subscription-based system
The cloud-based invoice management software is often known as the subscription model for a low annual and monthly fee. Therefore, there is no need to purchase the software outright or have expensive systems customized for your business.
So here are some ways invoice processing automation can help your business to save money. But you need to remember that every situation is different, and each company has its distinct needs. Read more about this service before integrating it in your business. So have you ever used an automated invoice service for your business? If yes, how did it save your organization money? Feel free to share your reviews in the comment section.