The very mention of the word “invoice” and its connotations are enough to make almost anyone shudder in 2017. But do they need to come with the headaches and sleepless nights many associate with processing and paying them? The simple answer…no.
The vast majority of businesses (of all sizes) currently sit ahead of the curve having adopted sophisticated software to ensure they hit maximum productivity and opportunity for success. However many have yet to uncover the benefits of introducing invoice automation processing software.
So, What is Invoice Automation Processing?
Invoice automation processing is a form of AP that pays inbound invoices by way of scanning, interpreting and filing the data provided. The only downside is that invoices for accounts payable still need to be scanned into the system – so a manual element still exists.
Additionally, the various fields on an invoice can also be scanned into the software, so that it becomes accustomed to capturing and registering specific fields.
Should I get an AP Invoice Processing Software?
Automating your invoicing processes streamlines your day-to-day business operations.
This, in turn, saves you both valuable time and money, as well as a number of other benefits which will now be explored in greater depth.
What are the Benefits?
Previously, manually processing an invoice could take around 10-40 days. This expanse of time is extremely costly for an organisation – regardless of size.
A recent study by The Aberdeen Group notes that an AP user can process about 20 invoices per day, which is a phenomenal saving in time and subsequently money and labour. This can also mean an end to those dreaded late payment fines for missed payment deadlines.
Having this extra time can then lead to more scope for increasing your business’s productivity. Additionally, this means that this reduces your number of staff needed for this mundane process, allocating your accounts employees to more valuable tasks that will move the business forward, rather than being bogged down with menial day-to-day tasks.
Reduces Human Error
In a time where Artificial Intelligence is all the rage, businesses are being actively encouraged to automate day-to-day processes through the use of innovative technology. This is particularly poignant with monotonous tasks such as invoice processing.
Only one entry is needed for AP software to pay an invoice, as opposed to the various steps normally required to be input manually. Decreasing the number of manual sends decreases your chance for human error - thereby improving communication with clients and conveying an air of reliability and quality assurance.
No More Losses
Where would you rather have your money? In accounts payable or in the bank? It’s a no-brainer isn’t it? AP will firstly save your business money by taking advantage of prepayment discounts. 2/10 net 30 for instance is a discount for payment within 10 days. These discounts are a benefit for AP software users, which are not available when processing manually.
Access to your accounts also becomes significantly easier too - the elimination of paperwork reduces the amount of time you’d be spending sifting through files. This also helps you keep better track of all your payments, as you’ll be less likely to lose or accidentally discard any important invoices. This type of data also includes:
• Vendor data
• Payment details
• Workflow status
• The audit trail
• Line item information
• Tax data
AP software also significantly reduces the need for paper, which means that you are doing your bit for the environment and showing that you are eco-conscious. It really is a win-win situation. In terms of saving money, it’s perhaps unsurprising that a recent Gartner report found that typical invoice processing paper costs in the UK can be up to £25 per invoice and in some cases, as high as £50, so this can be a massive saving if your company have a long list of invoices to pay each month.
With invoice automation processing, there’s less chance for your company to be a target of fraud.
Strong AP technology can detect suspicious data from both ends, whether it’s coming from suppliers or outgoing from within your business. It acts as a very specific type of antivirus software in a time where rapid technological advancement means cyber terrorism is on the up and more complex than ever.
Furthermore, paper copies of invoices containing sensitive data can easily fall into the wrong hands. AP software completely reduces the risk of this damaging situation becoming a reality.
Not impressed by the ancient, crackly on-hold music most organisations subject you to when waiting to be put through to the illusive “right department”? Well neither do your customers.
Placing clients on-hold while you try to find an invoice in a busy filing cabinet, or in a mountain of paperwork, doesn’t give off the best impression of your business. Using an AP software will allow you to bring up an invoice at the touch of a button, with real-time service and accountability.
In A Nutshell
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