Automated Invoice Processing Software: Invoice Management Automation

Automated Invoice Processing System: Your Guide

Accounts Payable (AP) was among the first departments to adopt digital document management to streamline the payments process. In this Guide, we look at how invoice automation improves invoice processing.

For more than twenty-five years Document Logistix has helped Accounts Payable teams with accountinig systems to capture information in multiple formats, paper and digital, and index it for the Accounts workflows. Our business software is the winner of the prestigious Robotic Process Automation Product of the Year award. Here we discuss next steps: automated invoice processing software.

AP workflow consists of multiple checkpoints such as ledger entry, queries, invoice approvals, expense approvals, payment scheduling, records keeping and archiving. At each point in the process payment may need to be checked against supplementary information, such as a valid Purchase Order, all of which can be implemented and automated according to your company’s schedules, rules and procedures.

By using Document Logistix automated document processing software and imaging solutions, organisations are assured of greater control of documents and business processes, as well as enhanced visibility and regulatory compliance.

What is an Automated Invoice Processing System?

An automated invoice processing system is accounting software that provides a technology-driven approach that streamlines the handling of invoices using artificial intelligence (AI), optical character recognition (OCR) and machine learning.

Invoice automation eliminates the need for manual data entry by automatically extracting invoice data and key details such as vendor names, invoice numbers, dates, payment details and payment amounts. The system can also verify contract terms prior to payment approval.

The automated invoice processing software then validates the invoice data and related information, matches it with purchase orders, routes it for approval and later verifies bank transactions. The system provides a complete audit trail  of activity to satisfy strict quality control measures and external audits.

You have options to activate electronic signatures (e-signatures).

Automation reduces errors, enhances efficiency and speeds up payment cycles. Businesses benefit from improved accuracy, compliance and cost savings, as automation minimises human intervention and prevents bottlenecks in the Accounts Payable workflow.

Automated digital invoice processing: Benefits for the Accounts team and the business

The return on investment for companies that are upgrading to electronic document management or installing new systems can be measured easily in simple efficiencies. Automated invoice processing delivers benefits and savings.

Finance teams using an electronic system save on historically time-consuming data entry, eliminate the potential for lost documents, overcome delays in authorisation of invoices, gain highly efficient filing systems, and eliminate the need for expensive, non-secure physical storage space. AP staff using invoice software can concentrate solely on their core duties and become far more productive.

Businesses whose AP team and Finance department use electronic document processing enjoy greater information security, are better able to meet governance and compliance requirements, while on a daily basis management has access to up-to-the-minute reporting that typically takes days to achieve without a digital business system. Ultimately, reliable, streamlined accounting improves supplier relations and customer satisfaction levels.

Whether you are looking to reduce the costs associated with invoice processing (see facts and figures at the bottom of this page) or to gain additional business benefits, talk to Document Logistix about the best ways to achieve your goals in the Accounts Payable department.

Managing large Accounting document volumes

Any size of business benefits from Accounts Payable electronic document and information management.

Document Logistix core Accounts Payable solutions help large companies to manage the complexities of high document volumes in a multi-faceted business. For example, in the case of logistics, procurement, manufacturing and supply chain businesses, Accounts Payable has to manage large numbers of support documentation, such as GRNs, PoDs, origination and quality documents.

Document Logistix also provides smart entry level systems for smaller businesses that help to automate daily, monthly and annual Accounting tasks.

Automated events and escalation in the AP workflow

Managers can pre-set how important matters are escalated in the event of a Payable issue, in order to avoid process bottlenecks and delays. An automated alert can be set for any Payables situation that needs detection or that could affect the smooth running of the business. Automated digital invoice processing software includes workflow checkpoints.

AI and ML enhance document capture and classification

Artificial intelligence and machine learning enhance invoice automation and processing by enabling accurate data extraction, data validation, anomaly detection, fraud detection and duplicate invoice prevention.

Machine learning improves accuracy over time and reduces errors and fraud. AI-driven workflows enable faster approvals, seamless reconciliation and better compliance.

AI and ML advancements boost efficiency, cut costs and optimise cash flow management in finance operations.

Secure access from any location

Document Manager is entirely permissions-based so that staff in the AP team only have access to their areas of operation, according to set access levels.

Document Manager is centrally controlled and accessible from multiple locations, including in the field and from mobile devices, which is a valuable time-saver for staff working remotely or at customer sites.

Efficient and error-free AP processes

For Accounts Payable teams, electronic document management is a great efficiency tool that allows everyone in the process to access information and focus on Accounting, rather than waste time hunting for information.

The addition of a defined AP workflow and automated AP components reduces the potential for human error and keeps the company’s Accounts running smoothly.

Invoice automation eliminates late payments and ensures accurate, faster payments.

With Document Logistix, you have options for cloud-based invoice processing, on-premises installation and SaaS pricing.

Reporting, audits and Accounting compliance

Organisations require regular management reports from the Accounts department.

With an electronic system, reports can be generated simply at regular intervals or on demand. Reports can be distributed electronically immediately or posted to a secure online portal or customer portal.

The fact that Accounts records are stored and maintained electronically, together with a full record of what files were accessed when and by whom, makes it far easier to satisfy audit requirements and compliance becomes relatively straightforward.

What should your invoice processing cost be?

According to research and analysis group, Gartner, typically the cost of processing an invoice in the UK ranges from £4 to £25, and in some cases is as high as £50, per individual invoice.

Around one third of companies are not able to determine the amount of their invoice processing cost, according to a 2021 survey, yet findings suggest that the cost of invoice processing using procedures without automation tools can be up to 20 times higher than invoice processes that are automated.

Many businesses are losing money either because of high processing costs or because of slow payment and collection processes that have an impact on client and supplier relations.

Moving to paper-less systems for Accounts Payable processes achieves rapid and substantial benefits in cost savings as well as management benefits such as improved cash management simpler matching and approval.

Reduce invoice processing costs to 50 pence per invoice

When AP and AR functions are automated, you gain:

• Improved efficiency in invoice management (document imaging, data extraction, electronic approval workflows)
• Reduction in external/internal enquiries (PO matching, electronic workflows)
• Improved reconciliation and ledger management (automated document matching, cash flow forecasting).
  
  

Document Logistix AP solution reduces the time taken to input invoice data by 80-90%. Our document archiving solution makes filing and retrieval time virtually instant. Authorisation is a simple automated process.

Taking into account the costs associated with data entry, manual matching, printing, filing and archiving, we typically see a reduction of the cost of invoice processing to about 50 pence per invoice, after Document Manager is implemented.

For more on AP document processing or to join us on one of our regular webinars  contact Document Logistix

See Document Manager invoice automation software in action in commercial operations and the public sector.  Select the image below >

Best Practices: Automated Invoice Processing