An invoice from a vendor arrives in the day’s mail and sets off a complex process. First, the invoice envelope must be sorted and opened, the return envelopes and ads tucked inside discarded. From there, your company may scan the invoice or key in data and begin validating individual items. By the time the document reaches an approver for payment verification, it’s no mystery why processing paper invoices is often expensive, inaccurate and inefficient.
These three common invoice management problems can significantly impact your company’s bottom line. Tedious paper-shuffling and data entry soak up time your employees could be spending on other, more important tasks. As errors and inaccuracies pile up, they can result in losses due to late or duplicate payments and wreak havoc with your cash flow. And let’s not forget that manual processing makes it more difficult for decision-makers to use invoice data in analysis and reports.
Here’s a three-part solution for addressing these common invoice management issues.
- Outsource data capture to reduce the cost of manual invoice processing. A processing service can gather and scan all paper invoices from your vendors, quickly delivering electronic invoices to the correct individuals for approval. This automated process reduces costs, expedites payment approval, and saves employees’ time for more important tasks.
- Use electronic accounts payable tools to reduce data errors. In addition to increasing overall efficiency, electronic invoice processing, automated routing and compliance rules make errors easier to spot and resolve.
- Connect invoice data to analytics software for a competitive edge. By integrating vendor invoice data with your company’s accounting reporting software, managers can apply analytics and reporting tools to better predict future expenses, uncover inconsistencies, and identify opportunities for savings.
Processing paper invoices is often expensive, inaccurate and inefficient — that’s just a fact. But your company can reduce or eliminate these problems by adopting an automated electronic invoice management system.
What solutions has your business found to address invoice management issues? Let us know by posting in the comments section.