Each day, you receive thousands of invoices, and entering the data into the various systems takes a lot of time and effort. However, compared to colleagues who process invoices manually, those who have opted for invoice automation can execute in less than one-fifth. Therefore, adopting tools that can easily absorb invoice data from many channels is now necessary if you want to efficiently manage your end-to-end AP automation.
It is
manageable to process invoices manually when a business is just starting out.
However, spreadsheets and other manual techniques are just impractical when you
begin to scale. In addition, manual processes can result in problems like
unpaid invoices, payment delays, and even fraud, which can harm your business
and supplier relationships.
How do you
get from your current situation to successful automated invoicing processing?
Fortunately,
this task can be completed in some incremental steps and usually without
significantly altering your existing processes.
This blog
will discuss automated invoice processing and how it can help you handle your
invoices more effectively. We'll also go over how to use the ap automation
from Skyscend to establish an invoice automation process.
What is the automation of invoices?
By
automatically paying supplier invoices, automated invoice processing
software helps companies streamline their accounts payable procedures. Payments
can be completed in a matter of minutes by retrieving invoice data as it enters
a system and automatically transferring it to your accounts payable or ERP
system.
Your
workflow will be more efficient thanks to invoice automation, and your
accounts payable team will be more responsive. Simply put, automating your
billing process is the process of configuring it to work automatically. With
technology, businesses of all sizes may save time by meeting their invoice
processing needs, from creation to payment validation.
How does automated invoicing operate?
When the
accounting department receives an invoice from a supplier, the usual technique
of managing invoice documents gets underway. It has been matched and approved
at this point. Usually, additional clearance is required if the invoice's total
represents a significant payout.
Then it
needs to be "posted" for payment in the system, where it must be
recorded. Depending on the business, the manual invoicing procedure often
involves as many as 15 phases. This takes a lot of time, especially if you
process several invoices.
Automated invoice processing gets right to the point. The
invoice is scanned when it comes in and feeds into the computerized accounting
system. Hours of manual data entry are eliminated using this kind of data
collection, also known as invoice capture. The invoice automation program will
subsequently transform the data into a text-searchable document.
Advantages of automated invoice processing
Best-in-class
businesses utilize automated invoice processing to strengthen spending control
and savings, enhance user experiences, boost productivity and efficiency, and
guarantee company continuity. A few of the benefits of invoice automation
are given below:
·
First, enhance supplier cooperation
for quicker hiring and error rectification.
·
Accelerate invoices' processing,
validation, and approval to boost efficiency while lowering operating costs.
·
Third, minimize or remove manual
errors and paper procedures.
·
Finally, improve and streamline the
matching of receipt reports, purchase orders, and invoices.
·
Improved identification of the
details of the matching method, including how the invoices were created and the
supplier invoices matched.
·
Access to invoices quickly and
efficiently improves payment management and Ap efficiency.
How Automated Invoice Processing Enhances invoices
management?
Adopting an
automated invoice processing solution can now support future business growth,
even if your organization only handles a few monthly bills. The invoicing
process can be streamlined while maintaining accuracy with the help of
Skyscend's ap automation software.
1.
Minimize Manual work
Inputting
data on authorized invoices into an ERP system is a typical step in the AP
approval process. This not only takes a lot of time but also raises the
possibility of mistakes like double entries and incorrect calculations. The
significant problems with a manual AP process, according to 51% of businesses,
are manual data entry and ineffective procedures.
2.
Automate the matching of invoices
Fraud
involving accounts payable is increasing. Approximately 75% of businesses were
the victims of billing fraud and other financial scams in 2020. AP fraud can be
avoided with the aid of invoice matching. It entails comparing incoming bills
to the appropriate purchase.
3.
Organize Your Records Centrally
You can
consolidate your documents with an electronic document management system
(EDMS), making it easy to find the required files. In addition, you may keep
authorized bills in systems like MS SharePoint, M-Files, DocuWare, Google
Drive, DocuShare, and more using Skyscend's automatic invoicing.
4.
Monitoring Performance
You may cut
processing expenses and benefit from early payment reductions with a more
effective invoice approval procedure. For example, vendors frequently give
discounts of 2/10 net 30. These invoices have a 30-day payment deadline, but if
you pay them in full within ten days, you'll save 2%.
5.
Send invoices to the appropriate
reviewers
After
reviewing an invoice and resolving any issues, the AP department must send it
to management for approval. Manually distributing documents, however, may
result in additional delays or even lost bills. Because of this, 40% of
businesses cite manual invoice routing as their most problematic aspect of
processing invoices.
Automate invoices processing right away
Every firm
needs accounts payable to work correctly; you must make your payment
obligations on time to keep your vendor relationships strong. Unfortunately,
due to manual invoice processing's inefficiency and error-proneness, your
business risks misplacing invoices, missing payments, and even payment fraud.
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