Main Reasons Why Companies Should Consider Implementing The Automated Invoice Processing

Companies today have to deal with a lot of technical issues on a daily basis. One of those issues is, of course, accounts payable invoice processing. It doesn’t matter which industry we are talking about, invoice processing is a part of the day-to-day operations in most offices. Until recently, all of the offices processed the invoices by manually entering the data.

As you can imagine, this left a lot of room for human errors and those errors occurred almost every day. Today, however, some of the companies are deciding to transition from the manual method to automated invoice processing. If you are a business owner and you are on the fence when it comes to this change, here are some of the benefits of AP Automation that might convince you to try this method.

How Does AP Automation Work?

The method of automated invoice processing is a new concept in most industries and businesses. However, people who are ready to move past scepticism and doubts will reap the many benefits this method brings to the table. But, there’s one question that needs to be answered - how does it work? Let’s find out together.

The main goal of automated invoice processing is to allow the seamless extracting of data from invoices entering your system and pushing it into the ERP. This way the processing of payment can be done in just a few clicks.

This is made possible by the shift from technological solutions based on traditional paper invoicing to more advanced technologies. What does this mean exactly? Here’s a simple explanation of how this method works.

Considering the fact that most invoices are being delivered in a hard copy format, some companies are introducing automation solutions known as the optical character recognition (OCR) tools. Those tools have the purpose of “reading” information and performing the invoice capture.

Now, even though this sounds pretty automated and like the intelligent robots are doing all the work, this is still a hands-off process. However, this method of doing things significantly reduces manual entry errors that people who are using the old school method make on a regular basis. To put it plainly, this makes the worker’s job much easier.

The most important aspect of this change is this - instead of capturing the data by writing it down on a piece of paper, ap invoice processing allows the easy import of data that can later be easily analyzed without the need for human interaction. This is essentially the translation of physical information into digital and the need for human involvement is drastically reduced. However, there are workers who are monitoring this process, just in case.

The Main Benefits

Now, since we saw how this electronic invoice processing works, it’s time to talk about some of its main benefits.

Reduced Number Of Misplaced Invoices

One of the main issues with the old school manual way of processing invoices is the fact that it causes a lot of misplaced invoices. This, of course, can cause plenty of related issues, like delays and lost money. Regardless of the industry and line of work, this can be fatal for the company. This is exactly where automated invoice processing comes in. By reducing the need for human intervention, this method drastically reduces the number of misplaced invoices. This makes the workers more productive by allowing them to do their work instead of fixing the issues.

Reduced Costs

The reduced number of mistakes and better productivity are not the only two benefits of this new method. There is also a financial aspect business owners have to consider when deciding whether or not to implement automated invoice processing into their day-to-day routine. The good thing is that AP automation can reduce the costs significantly. How? Well, companies that are using this method have to pay a lot fewer workers than other companies. This gives them an option to invest that money into something else. From a financial point of view, AP automation is definitely a viable option.

Reduced Stress In The Office

As we said, the main issue with the manual invoice processing is the big number of errors. Those errors are responsible for delays and this can hurt the company’s reputation. However, other than those mentioned issues, there’s one more that can occur in the office and that’s stress. When there are plenty of misplaced invoices, employees have to work overtime to make up for those mistakes and this can cause a lot of stress. As you know, working in a stressful environment kills productivity.

Fortunately, the automation of invoice processing can reduce the number of misplaced invoices, thus reducing the level of stress in the office. This is one of the main reasons why so many business owners are considering implementing this new method.

Better Communication With Clients From Other Countries

A lot of companies, regardless of their line of work, have to do business with clients from other countries. Not only this, but most companies have their own workers who live abroad and this means that there are a lot of invoices that have to be processed every single month. In other words, there is simply no room for error. However, the companies that work with clients from other countries usually have to deal with language barriers. Those barriers can cause a lot of issues when it comes to the invoice processing.

Fortunately, automated invoice processing can eliminate those barriers by reducing the need for human intervention. Transfering and capturing data by using this new method is rather easy and it eradicates the errors that can cost a company its money and reputation.

Conclusion

It doesn’t matter what line of work you are in, as a business owner, you have the obligation to streamline the processes in your office and allow workers to be more productive. This, of course, can be a very complicated task. This is especially true when it comes to something delicate and sensitive like processing invoices.

A lot of well-respected companies are still using the old school method of processing invoices manually, but this is proving to be an outdated way of doing things. Writing things down on a piece of paper has its benefits, but this method is simply prone to mistakes and those mistakes can’t be allowed, especially when it comes to the company’s finances.

Plenty of business owners have been sceptical regarding the automated invoice processing method, but it’s now safe to say that this is the right way of doing things. This method brings a lot of benefits to the table and some of them are reduced the number of misplaced invoices, reduced costs, and reduced stress in the office.

This definitely seems like a thing that can help the workers in your company to be more productive. Sure, anyone who might be interested in this method will have to invest in the proper equipment and this means there will be initial costs. However, this kind of investment can bring a lot of financial benefits in the long run. This is exactly why it’s definitely worth the time and money.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes