How do you process invoices? You have an accounts payable division that collects these invoices via a pdf or paper and then takes the time to manually sift through the details, verify them and release the payments. This might work if you have a few invoices to process every month. But what if you have a large number of payment requests from vendors, expense reimbursements from employees, supply bills, among other invoices? Think of the time your Accounts Payable division spends towards carrying out this tumultuous task manually. Errors, delays and wasted time and effort are a given. There’s no denying that even today tried-and-true manual methods of invoicing are still prevalent across organization, but it’s also impossible to deny that in an increasingly evolving world, it’s necessary to overhaul these primitive methods and embrace the new. This is where automation shows promise.
Automated invoice processing can eliminate inefficient manual processes that slow down payment releases, reduce processing errors, and provides employees who’re otherwise burdened with the paperwork the freedom to focus on other tasks.
How does automated invoice processing work?
Invoice processing automation has evolved past basic Optical Character Recognition tech, into so much more. Today, there are a number of options that automate the entire purchase-to-pay cycle, right from scanning to extracting the data to filing the invoice data. Be it on paper or electronic format, the right software can intelligently extract important information, validate it as per the pre-defined set of rules, and make the entire process hassle-free. With the right system, you can trade in lost invoices, late payments, and a lack of visibility into manual processes. Vuram has an intelligent invoice processing solution that revamps your legacy invoice processes with automated invoice capture, validation, and approvals.
Here are some of the benefits you get by opting for an automated invoice processing system:
#1 Process invoices faster
Without an automation tool for invoice processing, it may take up to 2 weeks to process invoices, validating the numbers, and getting the requisite approvals. An automated system can reduce the time considerably by setting up a streamlined workflow for the process.
#2 Reducing errors
Manual processes are prone to errors due to the data entry involved and the multiple layers of communication between different departments. Lost invoices, miscalculations, and process errors can happen at any time, especially when there are a large number of items to process. With an automated system, you can weed out errors and bring in increased accuracy.
#3 Avoid delays and late fees
When there are multiple invoices from suppliers and vendors to deal with, there are bound to be many hits and misses with a manual process. Sometimes, vendor agreements have late fees and penalties added, which will further add to your costs. An automated invoice processing system can help you circumvent these penalties help you process invoices faster.
#4 Maximizes visibility
Sifting through stacks of paper and manual filing make it impossible to get a comprehensive view of the entire process. Lack of transparency can lead to unaddressed issues including inefficient processes, under-reported expenses, incomplete accruals, among others. Automation brings in increased visibility throughout the process chain that gives you all the information necessary to address issues as they arise.
#5 Improve vendor relationships
Your relationships with external vendors and suppliers are highly crucial for business. Late payments or incorrect processing of invoices can often result in strained relationships, which can have a negative impact on your business. An automated system can help foster positive relationships by ensuring on-time payments and eliminating the back and forth calls and hassle that vendors are usually put through.
#6 Monitoring and reporting
With the increased transparency that automation brings in, your business can easily monitor expenses, understand where the money is spent and when. Most invoice processing tools are equipped with extensive reporting and analytics capabilities that provide a visual representation of the data in real-time that helps you make appropriate business decisions.
#7 Frees your resources
The mind-numbing manual work associated with invoice processing can leave your Accounts Payable division with little time to do anything else. With an automated invoice processing tool in place, you can speed things up, and free your resources from the repetitive, manual work, enabling them to take up more important tasks.
#8 Quick ROI and savings
Think of the time you save in processing each invoice. And how about the reduced number of resources you now use for the job? Added to that, you’re no longer paying up late fees or penalties. The cumulative effect of implementing automation in your invoice processing department generates quick ROI and also amounts to massive savings in the long run.
#9 Customizing your processes
Enhance your invoice processing by customizing the processes for your enterprise’s specific needs. For instance, if you receive invoices through multiple channels – emails, post, or fax, you can configure the tool to accrue data from all these sources or if you have a multi-step approval process, you can set up the automated workflow as desired. This gives you the control and the freedom to scale as needed.
#10 Gaining the competitive edge
Despite the tremendous advantages associated with switching over to automation, several organizations are still stuck with the ‘same old’ manual processes. Change although necessary, sometimes proves difficult for many, and thus embracing automation early on will give you a competitive edge, in terms of time savings, error reduction, among other aspects.
So, are you ready to revamp your invoice process with automation? Get started with Vuram. For more information, write to us at email@example.com.