How Automated Invoice Processing Improves Your Bottom Line

Invoices overwhelm accounts payable teams. Whatever the size, the pressure of invoices can build up in an organization. Manual processes introduce errors, consume time, and lead to loss of profits.

Believe it or not, but research by Accounts Payable Automation Trends 2024 shows that 52% of AP teams spend more than 10 hours every week processing invoices, and 60% still manually add invoices into their accounting software.

Automated invoice processing is changing this. It is an advanced processing system that uses technologies like Optical Character Recognition (OCR), Artificial Intelligence (AI), and ML to capture, extract, and approve invoices without the limitations of manual processing. It can extract data from diverse sources, match them with purchase orders, and route them to approvals and payments — all done automatically.

It complements humans in increasing their efficiency. Plus, it produces error-free and compliant resolutions that promote vendor trust and satisfaction.

Today, let’s understand the implications of manual invoicing and how an automated invoicing system can streamline invoicing workflow.

The Hidden Cost of Manual Invoicing

Manual invoicing is a revenue eroder. Apart from the copious time and resources it demands, manual invoicing also introduces errors, overlooks details, and impacts vendor trust. Overall, manual invoice processing may ruin your company’s reputation over time.

Here are some ways it can prove detrimental:

1. Time wastage: Manual invoicing can take days at a stretch, with files bouncing off tables with no accountability. According to Ardent’s research, non-automated setups may take up to 17.4 days to process and invoice.

2. Spiking costs: The average cost of manually processing invoices is much higher. This is in addition to the cost of errors, staff time, and overheads, which can overwhelm the organization.

3. Missed opportunities: Delays in manual invoicing often pile up. This leads to discounts missed and accumulated penalties that hurt profits.

4. Errors: Manual operations introduce errors even with the strongest controls. Without systematic record keeping, fraud and duplicates may creep in.

5. Lack of visibility: Manual processes are in equal parts unorganized and unscientific. Without any coordinated workflow, it is difficult to pinpoint where cash is owed or what is driving up costs.

The errors, costs, and inefficiencies drive up processing costs and harm vendor relationships.

Why do automated invoicing solutions matter?

Today, errors, misses, and long turnarounds aren’t just nuisances. They are strategic roadblocks to financial success. In fact, an Ardent Partners’ AP Metrics Report states that 56% of AP teams blame manual data entry for the inefficiencies in processing. With automated workflows, you can expect error-free operations that capitalize on advanced technologies to deliver consistent profits, year on year.

Automated invoice processing changes an error-ridden system into a single and intelligent invoicing workflow. This automated invoicing solution offers end-to-end invoice management and delivery. It follows all compliance protocols and best practices throughout. The result? True alignment with your business goals.

Benchmark: Manual vs Automated (Industry Metrics)

Automating invoice processing promotes transparency across all parties involved.

Global Accounting Corp (GAC) offers invoice processing services for your business. We helped a US-based medical staffing company that was struggling to manage an astronomical number of time cards to achieve fast invoice resolutions. We intervened with our invoice handling systems that utilize advanced technologies to smooth the workflow with automated operations. Over two years, deliveries became timely, remittances were standardized, and savings increased multifold.

This is not a one-off success. We, at GAC, have proven time and again that the benefits of automated invoice processing are tangible and boost the bottom line if implemented well. This, in turn, translates to achieving your business goals in a calculated way without driving up overhead costs.

Inside the Automated Invoice Workflow

With the right partner to orchestrate operations, an automated invoicing system can change the way your company handles its financial planning. It can effectively convert a system that is riddled with errors and bleeding costs into a lean, smart unit that is in sync with your business goals.

So how does this actually work? Let’s walk through our six-stage automated invoice workflow to see where the magic happens.

1. Capture and receipt: Automated systems easily capture invoices in all formats — email, supplier portals, or scans. These are then resolved into a single data center that becomes the touchpoint for all future operations.

2. Extraction: The automated invoice processing system leverages OCR, AI, and ML to extract various formats of data — numbers, customer data, IDs, and various other fields accurately.

3. Validation: Performs 3-way matching from invoices. Any mismatch is forwarded for human intervention.

4. Approvals: Automated workflows manage approvals expertly, routing them to the correct approvers, thus preventing unwanted delays.

5. Payment scheduling and delivery: Once approved, invoices are matched with ERP systems. Payment methods are applied, and early discounts are taken into account.

6. Archiving, reporting & analytics: Invoices are stored safely. All data is visible on dashboards that display cycle times, exception rates, vendor spending, and roadblocks.

GAC is an ISO 27001-accredited, GDPR-compliant organization. It brings certified automation, expert oversight, and proven methodologies to the table. Therefore, we are your perfect partner in achieving the benefits of automated invoicing solutions, which culminate in improving the overall business structure and achieving your goals consistently. With a scalable, AI and ML-led model, we focus on simplifying your invoicing workflow for hassle-free approvals.

The Benefits of Invoice Automation

Whether it is marine automated invoice processing or applied elsewhere in food or healthcare, automation lifts entire organizations from chaos and transports them to financial clarity. The overall health of the organization improves, and it delivers consistent profits in line with business and marketing goals.

Here are some of the strategic and financial benefits of an automated invoicing system:

• Higher margins: Automation in invoicing operations translates to speed in the process and efficiency in managing, routing, and approving invoices. This improves the bottom line and leads to tangible profits from lean operations. The Hackett Group reports that the top-performing AP teams consume 80% lower cost per invoice.
• Higher productivity: Automation gives time for AP professionals to focus on strategic tasks. This leads to greater productivity as a unit.
• Improved vendor relationships: Automated invoicing solutions offer 100% transparency in operations, with a central dashboard offering leaders full visibility of invoice status. This solidifies vendor trust and leads to long-term bonds.
• Data-driven insights: The dashboard on consolidated AP systems provides data on cycle times, discounts, cost liabilities, and so on.
• Complete compliance: Automated invoice handling follows all standard compliance and reduces the risk of monetary losses through vital errors.

Choose Tangible Profits with GAC

Switch from manual to automated invoice processing today. This single change can translate to real profits, smoother operations, and a stronger value chain network.  

At GAC, we leverage AI/ML technologies to create an exacting automated invoice processing system. Our solution cuts through the maze of invoices to create a single workflow of capture, approval, and archiving.

With GAC, your business can restore its financial health and deliver consistent profits in sync with your business goals. Contact us today.

FAQs

1. What types of invoices can be automated?
Automation can accommodate diverse formats of invoices, i.e., PDFs, scans, and handwritten. At GAC, we capture invoice data effectively and route it to appropriate approvers in a single, intelligent workflow.

2. How does the software handle different invoice formats and layouts?
Modern automation software uses AI/ML technologies to detect data from diverse formats. We, at GAC, use advanced technologies to identify and extract data from diverse fields and formats. Completely paperless.

3. What is the ROI of implementing invoice automation?
ROI is realized between 6-12 months, as automated invoice processing can lower invoice processing costs dramatically. At GAC, our AP invoicing solutions are trained to run error-free, lean operations towards the realization of the company’s objectives.

4. Does automation increase productivity for the accounts payable team?
Yes, absolutely. Automation saves time and resources by cutting repetitive manual tasks like data entry, document routing, and approval chasing that take a lot of AP staff time. At GAC, we make sure that our processes are lean and smart, which increases productivity throughout the value chain.

5. How do we get started with invoice automation?
First, assess your business workflow and identify a tailor-made solution for your pain points. We provide comprehensive AP solutions to restructure your workflow, which translates to leaner processes and improved bottom lines — this ultimately feeds into the company’s overall vision.