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How to build an Automated Invoice Processing workflow

ap automation

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.

Skyscend's electronic invoicing platform lets you do away with paper and time-consuming manual procedures while cutting costs and errors associated with processing. Complete accounts payable process flow automation is possible thanks to Skyscend’s simple ERP system integration. In addition, access to Ap automation with enhanced security, support for digital signatures, audit trails, and other features is available for a reasonable price
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