Automated invoice processing has long been recognised for its ability to improve productivity and efficiency in the Account Payable (AP) department, but its impact goes far deeper than simply transforming the way that business enterprise processes are completed.
In this article, we’ll explore how automated invoicing processing is transforming the way that business manage their finances.
Taking Advantage Of Early Payment Discounts
Suppliers appreciate the prompt settlement of their invoices, as it enables them to control their cashflow and saves time and money chasing non-paying customers. Often, they will offer attractive discounts to customers who pay quickly, but slow manual invoice processing can make it harder for businesses like yours to achieve quick turnarounds.
Unlike manual processing, automated systems can process invoices in a fraction of the time, enabling businesses to take advantage of early payment discounts. By paying invoices promptly, your business will reduce its costs and strengthen its relationships with suppliers, giving you access to the most favourable terms.
Improve The Accuracy Of Decision-making
Effective financial management depends on accuracy, so simple errors in data entry, which are more likely in manual invoice processing, can be critical. Incorrectly keyed data, for example, may go unnoticed until an exception is flagged, leading to an inaccurate picture of the financial standing of the company and causing time-consuming searches to find and correct the mistake.
Automated invoice processing utilises cutting-edge technology to capture invoice data with incredible precision. This ensures that invoices are accurately matched with purchase orders and delivery notes, thereby eliminating exceptions and improving settlement times. Also, automated invoice processing software offers advanced analytical capabilities which provide valuable insights into spending patterns, supplier performance, and opportunities for cost savings. By harnessing this data, businesses can refine their monetisation strategies and optimise their spending.
Automated invoicing processing doesn’t just save time, it also reduces operational costs. Manual processing requires a team of staff to input invoice data, which is a time-consuming and meticulous process as it’s crucial to avoid mistakes where possible. Staff are likely to become fatigued or distracted after a period, causing productivity to slump.
In contrast, automated solutions enable businesses to reduce the labour costs associated with manual data entry and invoice handling. With technology taking care of time-consuming and repetitive tasks, AP staff can focus on value-added or strategic responsibilities to shape a more efficient department that strives to improve payment times and minimise errors.
As businesses grow, the volume of invoices can significantly increase. For AP staff trying to manage a tsunami of paperwork, this is an almost impossible task without additional help, so invoice settlement times and accuracy are likely to suffer without considerable investment in extra labour.
Automated systems can seamlessly handle any increase in invoice volume without the need for additional resources. Scalability ensures that businesses maintain efficiency and accuracy in their invoicing processes even as they expand.
Find Out More
If you would like to find out more about how our automated invoice management solutions can shape your business’s monetisation strategies, please book a live demo and a chance to chat to our expert team.
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