Invoice processing and cash flow management are the lifeblood of any organization. At the same time, it has been widely recognized that manual, paper-based invoice processing has inherent problems that affect companies in critical ways, undermining the productivity and impeding the flow of information.
Electronic invoice processing streamlines your end-to-end operations by enabling you to capture invoices from anywhere, extract data without human intervention, and gain real-time visibility into your financial processes at all times. Therefore, automating your company's accounts payable functions can provide significant value. It turns labor-intensive and traditionally expensive processes into more efficient ones that ultimately reduces costs.
12 Ways in Which Invoice Automation Adds Value
Surprisingly, even today a large number of companies continue to use paper-based invoicing which is both expensive and increasingly unreliable. However, companies which choose to implement invoice processing automation can realize many benefits, few of which are listed below:
Exceptional Time Savings
Using business process automation to manage accounts payable activities reduces the time needed to process an invoice. Implementing an automation system will save a significant amount of time in terms of searching for an invoice or hunting it down in the approvals process.
Automation helps in reducing processing time which decreases financial risk and the attention one needs to give to low-value tasks. With increased visibility, your business is able to closely monitor billing discrepancies and payment terms while avoiding late fees and taking advantage of supplier discounts.
Improved Supplier Relations
Having a good relationship with your suppliers can be a boon for your company. Faster invoice processing results in more on-time payments which can help in improving relations between organizations and their suppliers.
Departments which implement electronic invoicing reduce their compliance risk as compared to paper-based systems, due to significantly better traceability, absence of lost or misfiled invoices, and ease of invoice retrieval during audits.
Capturing invoices electronically and uploading them to a web-based repository allows the users to access the files from anywhere in the world for processing through offshore operations.
Organizations can extend their initial investment by rolling out the same document capture technology to other business areas, such as employee records management, claims processing, order processing, or case management.
Fewer Manual Errors
Keeping track of invoices and if they have been paid in the wrong amount by using paper-based invoicing can become hectic. If the entire purchase-to-paid process is automated it can be ensured that the right product was ordered, the right price was quoted, and that the right invoice was paid at the right time.
Improved Cash Flow
Visibility and greater control over payables helps improve the accuracy of reports while improving the overall cash flow of the business. Automated processes help to streamline workflows that shorten the payment cycle through accurate invoicing and electronic payment reminders.
By automating the accounts payable process you will never mistakenly pay a bill twice, overpay an invoice, or make late payments incurring interest charges or fees. The system will alert you of duplicates, overpayments, and remind you of all the pending due dates.
Using an automated invoice system you can customize the accounts payable workflow process to suit your company's needs. You can route invoices above a prescribed amount to those with proper authorization, create and maintain approval timers, balance staff workloads, and cross-check and validate payables as and when required, amongst performing other important tasks.
Automated invoice systems allow as many people as necessary to collaborate on any particular payable in real-time. No matter where they are, individuals with an interest or stake in an invoice can simultaneously access it to confirm or dispute charges, seek clarification, or explain discrepancies.
E-invoicing systems are extremely helpful when it is time for an audit. The electronic audit trails inherent in invoice software make tracking an invoice from receipt to payment a very easy task. Accounts payable fraud detection also becomes easy with an automated system.
Popular Invoice Automation Software
Using invoice automation software comes with a host of advantages such as increased visibility, reduced costs per invoice, ability to control the approval cycle, and optimized invoice capture with minimal investment and disruption. Some of the popular invoice automation software used by most companies includes:
Leverage the Benefits of Automating Invoice Processing with Flatworld Solutions
At FWS, our invoice processors employ high-end invoice scanning technology along with the latest invoice processing software, to achieve maximum accuracy within a short turnaround time. By outsourcing your invoice processing requirements to us, you can free yourself from the tiresome process of hiring and training in-house invoice processors. By partnering with us you can be assured of complete confidentiality of your information with our efficient data security measures.
Leverage the benefits of automatic invoice processing by outsourcing your requirements to us. Get in touch with us or talk to one of our accounting experts, we will be more than happy to serve you.