Automating Invoice Processing Workflows

It is time you experience the digitalized and automated accounts payable approach to minimize manual labor, reduce errors, and achieve better insights on company expenses and profits.

The way forward is a robust invoice system to import data from various systems, process it through your accounting systems, automate invoice processing workflow, approval workflows where possible, and send it to third-party systems. 

In this article, we explain automated invoice processing so you can get a clearer understanding of how it works and the benefits of automation.

Automated invoice processing helps to seamlessly integrate data from various invoices of your company and transfers it to your accounting systems or a secure folder as per your need with a few clicks.

Payment processing for the accounts department of any firm is exhaustive and chaotic, like managing paper invoices, PDFs, emails, etc. Manual data update of the invoice into the system results in a tally difference, missing documents, and time loss.

The three steps involved in invoice processing are as follows:

• Scanning the physical invoice
• Decoding the invoice data according to compliance
• Entering invoice details into your accounting system

Invoice processing software gets done through rule-based OCR (Optical Character Recognition) and Intelligent OCR software. The automated OCR software logically extracts the required information from the scans, approves according to business rules, and compliance and maps it to a purchase order.

Later these details feed to an accounting system or a financial system for payment processing. However, the rule-based system is inefficient to scale up to a high volume of financial transactions amid multiple sources, formats, and devices. That is where an integrated and automated invoicing software application can help. You can automate your invoice processing workflow for automatic inputs.

Why is automation necessary?

Automated invoice software works on processes like 3-way checks on purchase orders, invoices received according to purchase order, and receipts produced against invoice. Each of these generated documents has a unique number that maps to each other.

The functions of the invoice process depend on the accounts payable processes followed by a firm.  Automation eliminates inefficient manual systems with artificial intelligence and machine learning technologies.

AP automation does the menial activities of the accounts department and utilizes a system to complete the tasks. The automation system matches the price, purchase order, or data entry, and a logical approach handles the rest of the functions. In comparison to the manual method, automated invoices flow through a faster workflow.

Automated invoice processing surfaced as a practical innovation and a terrific tool to save time and cost. Automated invoice management has reorganized the accounts department and made it an essential software. 

The computerized invoice automation system runs on a single platform and allows vendors, buyers, invoicing, and payments to efficiently manage the workflow. The workflow is prepared to work on accounts payable processes.

• Importing Invoices – import documents from 10,000+ online portals, email inboxes, and other sources.
• All data can be fed into your accounting system digitally and automatically.
• Customized review and approval workflow processes for invoices based on your operations.
• Pay outstanding invoices and complete the payment cycle.
• Many other exciting features abound, like Bank integration, mapping invoices to transactions, and scanning paper Invoices with a mobile app that scans paper invoices and extracts required data.

Increasing use of Artificial Intelligence

Automated invoice management with machine learning and artificial intelligence is making waves. Artificial technology does the major work of recording, verifying, and similar potential processes in automation solutions. In automated invoice processing, artificial intelligence learns the functions like judgment, approving specific invoices, assigning ledger codes, accelerating the processes than manual efforts. AP automation workflow gets leveraged by invoice automation.

Benefits of Digital Invoicing:

Organizations gain a lot from processing invoices. For example, some of the advantages of using GetMyInvoices are as follows:

• Faster processing of invoices
• Avoid missing invoices and payments.
• Gain payment discounts for early payments.
• Avoid late payments with proper scheduling and improve working capital.
• Get your preparatory accounting in a correct and completed state.

Conclusion

When the accounts section adopts digital processes, it will be comfortable to focus on growth. An excellent automated invoice management software will use all the available features to run an organization smoothly, generate revenue, improve cash flow and get actionable insights.