As per the Coupa report, 64% of companies which implemented AP automation processes witnessed improved efficiency in their business process. Invoice Automation Process is a system which streamlines the accounts payable process to process the invoices. With an invoice automation process, you can reduce the time taken by the manual procession of invoices, thereby reducing the margin of error.
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Why is Invoice Automation Process Necessary?
The following are some of the reasons why invoice automation process is important for your business
- Essentially manual invoice processing generally has a higher percentage of errors as well as double payments.
- The threat of fraud, as well as the misappropriation of resources, has also been reduced.
Both elements lead to delayed invoice processing, strained supplier relationships, and lower company productivity.
In order to guarantee that the entire process is precise, effective, and error-free, it becomes necessary to replace manual operations with an automated invoice processing system.
How does Automated Invoicing Work?
Essentially manual invoice processing begins when the accounts department receives an invoice from a supplier regarding a certain amount of goods. Thereafter the accounts department match the invoice.
Once the invoice is tallied, the payment details get updated and thereafter, when approved, the payment is made to the supplier. However, the approval process depends from organization to organization.
Invoice Automated Processing tries to build on this workflow by eliminating repeated manual tasks. The following are some of the ways how the automated invoicing work.
- Essentially when the invoice arrives, it is automatically scanned by the system and then fed to the digital accounting system.
- Thereafter the data is recorded into the digital database, and the invoice is then converted to a text-searchable document mapped by an automated management system.
- The data that is recorded and stored includes details of the name of the supplier, amount of purchase, and details of the goods supplied, thereby providing a detailed record of the invoice.
- If the details do not pass the data check, then the manual review is done.
Benefits of Automated Invoice Processing
There are several benefits of automated invoice processing. These include the following
Essentially the main purpose of invoice automation process is to streamline invoice processing, and this is done by putting up all features in a unified platform. With proper invoice automation, there are real-time updates of payments, single-time invoicing, recurring billing and real-time updates of payments.
Reduction in Manual Entry
Essentially with the adoption of invoice automation process, manual input of invoices is reduced, thereby also improving efficiency.
Reduced Margin of Error and Security
Due to factors including fatigue and lack of concentration, manual processing of bills is prone to mistakes. As per the Level Research Report, it was stated that almost 25% of the companies found discrepancies in manual invoice processing. Automated invoice processing ensures that the data which is entered is accurate and free from any kind of errors. Moreover, every automated solution matches the data that is extracted from the invoice of the supplier and thereby reduces the chances of fraud. This makes the invoice entry process much smoother and also reduces the margin of errors.
The invoices are typically kept in files or folders that are untraceable and difficult to access if necessary after the payment has been completed. Automated invoice processing solutions, on the other hand, use an Electronic Document Management System to systematically store the data in a specified central digital database.
In addition to creating an audit trail, such storage also makes it simple to retrieve the invoices in an emergency. Additionally, it makes it very simple to trace all the paperwork, lowering the possibility of any lost or missing bills.
Since you now understand most of the benefits of invoice automation process, it becomes important that you choose a technology provider for it.
Why Should You Choose KlearStack for Your Accounts Payable Automation?
At KlearStack, we provide one of the best accounts payable automation solutions, which can increase the productivity of your business by 200%, reduce the set-up costs by 80%, reduce the cash outflow by 60%, and reduce the turnaround time by 5x.
At KlearStack, we utilize AI-based solutions with the help of deep learning and OCR to extract and improve accuracy. We process thousands of documents like invoices, and receipts without any human error and reduced costs. By adopting our automated invoice processing system, you can cut back on your operations costs by 70%.
The following are the benefits of using KlearStack AI
- Reducing the use of paper as well as manual errors.
- Streamlining and improving the process of the invoice as well as reconciliation.
- Compliance with the regulatory requirements in a better way.
- Speeding up the process of boarding, reconciliations as well as error detection.
Thus, streamline your invoices by adopting the best invoice automation process solution from KlearStack AI and reduce your cost of operations and improve your efficiency. Contact our experts to schedule a demo with us.