Delays in payments can put a damper on a company's reputation and can create a number of negative ripple effects. Inability to purchase goods, delayed production and unhappy customers are just some of the potential problems. Fortunately, you can avoid all of this by implementing an efficient process for punctual invoice payment.
Automating your accounts payable is the key to solving many of the problems associated with a manual payment process. Let's take a closer look at what automation entails:
Traditional invoice processing is often a long and monotonous process with multiple steps, including the transfer of invoice data between different systems. This can involve manual data entry or sending the invoice to an inbox for approval. In addition, invoices need to be matched in the ERP system for payment and bookkeeping, which increases the risk of errors. By automating these steps and establishing a digital workflow, the process is significantly simplified. Incoming invoices are handled automatically, if you can, reducing the need for manual handling to a minimum. This frees up time for your employees to focus on more valuable tasks, ensuring a streamlined and error-free process.
By automating invoice handling, manual data entry becomes history. eInvoices are sent directly to the system, while PDF invoices are automatically retrieved from the inbox, read, interpreted and integrated into the same workflow as the eInvoices. Suppliers can also easily connect to a portal to create and send invoices directly to you.
Automated invoice management systems store your invoices securely in the cloud, so you can access your data anywhere, anytime.
With a focus on an intuitive user experience, the automation system is easy to learn and use for all users.
For the convenience of approvers, an automated invoice management system often offers a mobile client. This allows users to approve invoices on the go. The user receives notifications via email and can open the mobile client directly from the link in the email, making the system easily accessible wherever they are.
As your business grows, the system grows with you. Whether it's processing 20,000 or 1,000,000 invoices a year, the system handles the task without proportionally increasing operating costs.
In addition to setting up rules, AI is used to recognize and retrieve invoices from inboxes. AI also creates new rules and suggestions based on previous handling of similar invoices from specific suppliers. This allows repetitive invoices with the same amount and company to be approved automatically, unless irregularities are detected. In such cases, the invoice will be sent for manual processing and approval.
When an invoice is received, it can be automatically matched with the purchase order. This makes it easy to track commitments from purchase-to-payment.
An invoice can be received in several ways. Typically, it is received by eInvoicing or by automatically retrieving and interpreting PDFs from inboxes, which are then sent into the invoice flow.
The invoice flow follows set rules and uses AI to suggest new rules when it detects patterns in the content and approval of invoices. The flow sends the right invoice to the right person for approval.
The correct approver receives notification that there are invoices to approve and approves the invoice with the correct coding, sending it back to the system for further processing and payment.
Integration with your accounting system is required to retrieve supplier information and coding dimensions used for correct cost entry. This integration also provides access to supplier terms and accounting dimensions. Once an invoice is assigned and approved, it is transferred to the accounting system for posting and payment.
Digital archives of everything that happens in your invoice management system are securely stored in the cloud and easily accessible for audits. When you need a report with insights into your accounting obligations, it's immediately available so you can spot trends and bottlenecks.
Automation is the key to an efficient and modern accounting department. By automating your accounts payable process, you can scale your operations, reduce costs and free up time for your staff to focus on more strategic tasks. In an age where data is crucial, automation also gives you data-driven insights into your invoice cycle. This gives you better control over your finances and helps you make smarter decisions for your business. Can you afford not to automate?
Do you want to learn more about how artificial intelligence can make invoice management easier? Check out this episode of Sofa Talks where we give you an insight into the power of AI to automate invoice processing. We also explore and clear up 7 common myths about AI-based invoice processing.