Organizations strive to be successful and stay ahead of the competition today. Implementing the latest technologies and practices helps keep the organization up to date with best practices. Understanding the meaning, scope, and importance of automated invoice processes is essential. This article will help to learn more about the importance, benefits, and scope of automated invoicing.
Here software technologies get used for processing invoices and scheduling the same for payment at a particular time and date. Software-aided invoice processing with minimal involvement of paper checks and people is the core of automated invoicing. The automated invoice process is as follows:
In the steps mentioned above of invoice processing, software technology is relevant from the very beginning. It converts invoice and payment data into digital files (online corporate documents) that are easily searchable. Software technology significantly reduces the involvement of manual labor and time in invoice processing.
Automated invoicing is vital because of the following benefits:
As a finance professional, you should focus on two types of automated invoicing, namely, invoice capture and optical character recognition (OCR).
One of the most significant advantages of implementing invoice automation software for AP processes is the considerable boost in the profitability of a business. As mentioned earlier, implementing automated AP processes is like an investment with profitable returns because the costs related to paper, labor, envelopes, stamps, and postage get cut. According to Kofax, invoice automation can reduce costs by 81% and increase efficiency by 73%.
Implementation of AP automation software for invoice processing significantly boosts productivity. Productivity increases because the processing time gets reduced substantially. The probability of costly manual errors gets minimized because of the minimal involvement of manual labor. Another time-saving benefit of automated invoicing is the ease with which invoices can be searched and identified. They get converted into online digital files that get incorporated into the corporate database of a company.
Software code and machine learning (a particular type of artificial intelligence) are the two key technologies used in automated invoicing. Software code provides the relevant instructions required to run the automated system efficiently. Machine learning identifies the approvers for invoices and detects patterns in invoice data and payment data.
Manual AP processes are one of the most significant barriers to productive and efficient finance departments. Automated invoicing is worth considering if you want to boost the profitability as well as productivity of your company.
See the benefits of automated invoice management:
Better overview. Less accounting work. More time for your ideas.