In today’s digital world, businesses are striving to achieve complete paperless invoice processing automation to streamline their accounts payable (AP) operations. Manual invoice processing is a tedious and time-consuming task that can result in errors and delays, leading to inefficient AP workflows. By embracing paperless invoice processing, businesses can achieve greater efficiency, accuracy, and cost savings.
So, what is paperless invoice processing, and how can KlearStack help businesses achieve complete automation? Let’s dive in.
What is Paperless Invoice Processing?
Paperless invoice processing refers to the automation of the invoice processing workflow through digitization, data extraction, and workflow automation. In other words, it is the complete elimination of paper invoices and manual data entry, allowing businesses to process invoices electronically.
With paperless invoice processing, businesses can capture invoice data, validate it against purchase orders and receipts, and route it for approval, all without manual intervention. This leads to faster processing times, reduced errors, and greater visibility into the invoice processing workflow.
5 Steps to Paperless Invoice Automation
Paperless invoice processing is the way of the future, and it can help your business operate more efficiently, save time, and reduce costs. Here are the five steps to achieve complete paperless invoice processing automation:
1.Digitize Your Invoices:
The first step towards paperless invoice processing is to digitize your invoices. This can be done through scanning paper invoices or receiving electronic invoices directly into your accounting software. The goal is to have all invoices in digital format so they can be easily processed and stored.
Once the invoices are digitized, advanced Optical Character Recognition (OCR) technology can be used to extract the relevant data from the invoice. This includes information such as the invoice number, supplier name, date, and line item details. OCR software can save a significant amount of time by automating data entry.
3.Automated Invoice Matching:
The next step is to match the invoice to the purchase order and receipt of goods or services. This can be done through automated invoice matching software that compares the data extracted from the invoice to the purchase order and receipt data. Any discrepancies can be flagged for review and resolution.
Once the invoice has been matched and validated, it is ready for approval. An automated approval workflow can be set up to route the invoice to the appropriate approver(s) based on predefined business rules. The approver(s) can then review and approve the invoice electronically.
Once the invoice has been approved, payment can be processed through electronic payment methods such as ACH or wire transfer. An automated payment processing system can be set up to ensure that payments are made on time and in accordance with payment terms.
How Does KlearStack Achieve Complete Paperless Invoice Processing Automation?
KlearStack’s Intelligent Document processing platform provides an end-to-end solution for paperless invoice processing automation. Here’s how it works:
Data Capture and Extraction:
KlearStack’s AI-powered OCR technology captures and extracts invoice data from both structured and unstructured documents, including PDFs, images, and scanned documents.
The extracted data is validated against purchase orders and receipts to ensure accuracy and completeness.
KlearStack’s workflow automation engine routes the validated data to the appropriate stakeholders for approval, eliminating the need for manual intervention.
KlearStack integrates with leading ERPs, such as SAP, QuickBooks,Tally and many more, ensuring seamless data transfer and eliminating the need for manual data entry.
KlearStack’s dashboard provides real-time visibility into the invoice processing workflow, enabling businesses to track invoice status, identify bottlenecks, and take corrective actions.
Benefits of Paperless Invoice Processing with KlearStack
By implementing paperless invoice processing with KlearStack, businesses can achieve the following benefits:
- Increased Efficiency: Paperless invoice processing eliminates manual data entry, reducing processing times and improving productivity.
- Improved Accuracy: The AI-powered OCR technology and data validation ensure greater accuracy and completeness of invoice data.
- Cost Savings: By automating invoice processing tasks, businesses can reduce labor costs and improve overall efficiency.
- Enhanced Compliance: KlearStack’s platform helps businesses comply with regulatory requirements by ensuring accuracy and completeness of invoice data.
- Real-Time Visibility: KlearStack’s dashboard provides real-time visibility into the invoice processing workflow, enabling businesses to track progress and identify bottlenecks.
Here are some statistics that highlight the importance of paperless invoice processing:
- According to a report by Ardent Partners, manual invoice processing costs organizations an average of $15 to $20 per invoice, whereas the cost of processing an invoice with automation drops to $2 to $4 per invoice. The same report by Ardent Partners states that paper invoices account for 70% of all invoices received by organizations.
- A survey conducted by Billentis found that paperless invoicing can reduce invoice processing costs by up to 90%.
- According to a study by PwC, 80% of businesses still rely on paper-based processes, which can lead to inefficiencies and errors. The same PwC study found that automating invoice processing can result in a 50-80% reduction in processing costs.
These statistics highlight the potential cost savings and efficiency gains that can be achieved through paperless invoice processing and automation. By implementing a solution like KlearStack’s end-to-end accounts payable automation platform, businesses can streamline their invoice processing workflows and reduce costs associated with manual processing.
Paperless invoice processing is the future of AP automation, and KlearStack’s Intelligent Document Automation platform provides an end-to-end solution for complete accounts payable automation. By embracing paperless invoice processing, businesses can achieve greater efficiency, accuracy, and cost savings, while also enhancing compliance and visibility into the invoice processing workflow.
If you want to learn more how KlearStack can help achieve your organization complete paperless invoice processing automation, schedule a demo with your experts today!