Automated invoice processing software provides the perfect way to streamline the accounts payable (AP) process by removing paper and manual processes and replacing them with efficient, digital alternatives.
The software accurately captures data from incoming invoices, pushes this data into an integrated finance package, efficiently manages approvals and stores it all securely in a centralised system.
The Problems with Traditional Accounts Payable Processes
Traditional AP processes rely on manually matching invoices against purchase orders and delivery notes. Finance staff key this information into a finance package along with providing extra information such as nominal codes, chasing approvals and physically filing the documents away.
"This is all an extremely time-consuming, error prone, inefficient and expensive way of handling important business documents and data."
Said Ruban Rajasooriyar, DocTech's Managing Director.
Automating the invoice process enables organisations to automatically capture, sort, index and store invoices received in any format and kick start an approval process. Approval workflows are designed based on business rules ensuring only accurate data can enter the finance system. Automated invoice processing solves many of the problems organisations face with their accounts payable process, enhancing staff morale, and providing key staff with more time for meaningful tasks.
How Automated Invoice Processing Works
Automated invoice processing works by automatically storing incoming invoices in a document management solution and then pushing the captured data into a Finance or ERP package.
Invoices enter the system through scanned paper or automatically via an email. The important information is then captured, extracted, indexed, and stored.
Machine learning can be applied which remembers where to find the most valuable information on a document as it's processed. As more and more invoices are put through the system, it learns further and any manual corrections that must be made are learnt too, continually increasing in speed and accuracy.
This indexed data sits at the heart of the solution, enabling users to easily find the digital document they're looking for. Documents can be accessed in a matter of clicks by an authorised user from any device and anywhere.
The digital invoice can now move through the accounts payable process, kick starting a pre-configured workflow that follows pre-defined business rules.
The captured invoice information is automatically pushed into a Finance or ERP system, eliminating double entries and with no manual intervention required.
Invoices can be automatically approved by the system based on value or PO match, or routed to a member of staff for approval.
The Benefits of a Streamlined Accounts Payable Process
Invoice processing software can dramatically reduce errors and quickly highlight exceptions, streamlining accounts payable processes and creating greater efficiency for Finance departments. The benefits include:
It provides a simple way to automatically capture data from incoming invoices, converting this data into searchable text which can be automatically sent to your ERP or Finance software.
Accurate data capture is essential for businesses to ensure the correct information flows through all business processes, removing problems that can cause issues further down the line.
Documents are sent via a workflow for transparent and faster approvals based on individual business rules. The system can trigger email reminders if a document isn't approved after a set period, and when employees are on holiday, a task can be sent to the next in line, avoiding process bottlenecks.
A digital platform stores all invoices, purchase orders and delivery notes in a centralised system. This means no lost paper and no lengthy searches across multiple digital locations. The time saved enables staff to get on with strategic activities opposed to mundane data entry, reducing the stress and anxiety of month end.
- Improved Supplier Relationships
Automated accounts payable software enables organisations to put processes in place where only approved suppliers can be part of the purchasing process. Automatically validating that it has come from an approved supplier means an invoice can be processed with no wasted time or risk.
Supply chains are consolidated, and suppliers can be paid quicker enabling companies to benefit from early repayment discounts. Having a good relationship with suppliers can also provide advantages over competitors.
Customisable workflows can be built to ensure documents are routed directly to the approver based on price, cost centre or a person's role in the organisation. Employees can be notified with a task in the system and/or an email.
Rules put in place are based on specific organisational processes and the workflows can manage exceptions, out of office responses and escalations.
Organisations taking advantage of automated invoice processing and machine learning capabilities to streamline accounts payable processes are striding ahead of the competition.
If you're printing invoices, outsourcing manual data entry, struggling to extract data from documents or re-keying information between systems or screens, get in touch with us at DocTech to make a positive and lasting change – info@doctech.co.uk or 0161 647 7040.