Automated invoice processing will save your organization time and money.
This guide explains what invoice automation is and what it does. Then it provides all the information you need to know to get world class invoice automation for your organization.
Automated Invoice Processing: What It Is and What It Does
Automated invoice processing refers to the use of technology to streamline the process of handling, processing, and paying invoices. This process involves using software to capture, extract, and validate invoice data, as well as automate invoice routing, approval workflows, and payment processing.
Manual invoice processing can be time-consuming and prone to errors. However, with automated invoice processing, businesses can significantly reduce the time and resources required to handle invoices while improving accuracy and reducing the risk of errors.
Automated invoice processing typically involves the following steps:
- Data Capture:
The invoice data is captured either by scanning paper invoices or extracting data from digital invoices. This process involves the use of optical character recognition (OCR) technology, which can accurately extract data from both structured and unstructured invoice formats. World class AP automation also includes the options for Verified Data Capture where your data gets human review for near-100% accuracy.
- 3-Way Matching:
Once the data is captured, it is validated to ensure that it is accurate and complete. This process involves comparing the data with the purchase order and receipt data to verify that the invoice matches the goods or services received. Automating invoice header matching is easy. But matching line-item data requires advanced AI.
- Invoice routing:
After the data is validated, the invoice is automatically routed to the appropriate person or department for review and approval. This process involves setting up approval workflows based on predefined rules, such as the invoice amount, vendor, or department.
- Approval workflows:
The approval workflows are designed to streamline the invoice approval process by automating the review and approval of invoices. Approvers receive notifications when invoices are ready for their review, and they can approve or reject invoices with just a few clicks. Managers and approvers love invoice approval software!
- Payment processing:
Once the invoice is approved, the payment is processed automatically, and the payment information is recorded in the accounting system. This process involves integrating the automated invoice processing software with the accounting system to ensure that payment information is recorded accurately.
Automated invoice processing can provide several benefits to businesses, including:
- Increased efficiency:
Automated invoice processing can significantly reduce the time and resources required to handle invoices, freeing up staff to focus on other tasks.
- Improved accuracy:
Automated invoice processing reduces the risk of errors associated with manual data entry and processing, resulting in more accurate data and fewer payment errors.
- Better visibility and control:
Automated invoice processing provides real-time visibility into the invoice process, allowing businesses to track invoice status, identify bottlenecks, and improve overall control over the process.
- Cost savings:
Automated invoice processing can reduce the cost of processing invoices by lowering the need for manual labor and decreasing the risk of payment errors.
How to Find World Class Automated Invoice Automation
Automated invoice processing is a critical part of accounts payable (AP) automation, and CoreIntegrator offers all-in-one AP automation solutions that can streamline your invoice handling process. So let’s walk through the steps of implementing an automated invoice processing system.
- Evaluate your current invoice processing system.
Before you start implementing an automated system, you need to assess your current process to identify areas that need improvement. Take note of the time and resources spent on manual processing, such as data entry, approval, and payment processing.
- Identify an AP automation software.
CoreIntegrator offers full AP automation solution that includes automated invoice processing, approval workflows, payment processing, and reporting capabilities. These end-to-end solutions will simplify your AP process and improve efficiency.
- Prepare your data.
To implement an automated system, you need to have a digital copy of all your invoices. If you have paper invoices, you will need to scan and convert them to digital format. CoreIntegrator AP automation solutions offer advanced optical character recognition (OCR) technology that can accurately capture data from both paper and digital invoices.
- Train your staff.
CoreIntegrator AP automation solutions are user-friendly and intuitive, but you still need to train your staff to use it effectively. This includes training on how to upload invoices, review and approve them, and handle any exceptions.
- Set up approval workflows.
CoreIntegrator AP automation solutions come with pre-built approval workflows that you can customize to fit your business needs. You can set up rules for invoice approval based on factors such as the amount, vendor, or department.
- Test the system.
Before you start using the CoreIntegrator AP automation solution, you need to test it to ensure that it is working correctly. Test the data capture, approval workflows, and integration with your accounting system.
- Go live.
Once you have tested the system and made any necessary adjustments, you can go live. Working closely with you in a hyper-care environment, we start with a small batch of invoices and gradually increase the volume as you gain confidence in the system.
- Monitor and optimize.
After implementing the CoreIntegrator AP automation solution, monitor its performance to identify any areas that need improvement. The solution offers robust reporting and analytics capabilities that can help you identify bottlenecks and optimize the system for better efficiency.
In conclusion, CoreIntegrator AP automation solutions offer an all-in-one solution that streamlines your invoice handling process and improves your AP efficiency. By following these steps, you can implement an automated system that will help you process invoices more efficiently and accurately.
And, by doing so, you will save your organization time and money! So why not request a free, no obligation demo today!?