In a large organization, the invoicing process may consist of several steps. They may include
SummaryAutomatic invoice processing and its benefitsReceiving and creating digital invoicesUsing AI-powered OCR technology to analyze invoicesAutomatic invoice approvalAutomatic payments and follow-up remindersThe conventional processing system is plagued with many problems that not only cause delays but also prevent your business from growing. Whether you send invoices to your customers or receive them from suppliers and vendors, an inefficient invoicing process can cause you huge cash flow problems and also destroy your relationships with your business partners. Automating your invoicing processes can solve these problems in one fell swoop.
Fortunately, automatic invoice processing can get you done in 10-15 minutes that would otherwise take 10-15 days. With good OCR technologies, business process automation tools, and some changes in work culture, you can automate your invoice processing in just a few days and help your business grow unhindered. Below are some invoice processing automation options and ways they can help you grow your business.
Embrace digital invoice generation. If you receive invoices from suppliers and other business partners, ask them to send you digital invoices instead of paper invoices. Even if they don't use invoicing software to generate digital invoices ask them to send your scanned copies of their paper invoices, then back home, you can use advanced AI-powered OCR technology to extract crucial information.
Among your work processes, you can switch to BPA tools that allow you to generate invoices automatically without your employees having to enter the data manually. You can use barcode scanners if you sell physical products; these barcode scanners can automatically enter data into your billing system. If you sell services, your automation process can automatically track the schedule and calculate billing amounts.
Incorporating automation into this stage of invoice generation minimizes, or rather completely eliminates human error. Compliance checks can be integrated into the billing system using artificial intelligence and machine learning.
Once the invoices are received, your OCR technology can go through them, extract the relevant values and put them into your computer system. Once you have the data with you, the sky is the limit. You can create other documents digitally. You can analyze the data and validate it with your warehouse or store. You can attach triggers to various data points to automatically push invoices to the right departments.
Even within your organization, if scanning is not yet 100%, paper invoices can be scanned and then processed by your OCR technology.
Going through hundreds of invoices, even thousands of invoices, is very time consuming, whether those invoices are on paper or in digital files. Data from the various departments involved can be validated against each other with a mix of hardware and software and most invoices can be approved automatically.
For example, if a shipment has been received by one of your warehouses and has been accepted, the shipment details can be downloaded or scanned and saved to the system. When the invoice is received, the shipment number mentioned on the invoice can be matched with the shipment number received and approved in your warehouse and, therefore, the invoice can be immediately approved.
Your goodwill can increase significantly if you release payments for bills on time or even before time. If your invoices can be automatically approved, even payments can be sent automatically. Once the invoice is approved, it can automatically initiate a payment process.
On the other end of the spectrum, serialized reminders can be sent to clients and clients with whom your payments are pending. Late payments can cause cash flow problems. Sometimes these cash flow problems become so serious that they can even cost you dearly. If you have not yet received payments from your customers and clients, follow-up invoices can be sent to ensure that you receive payments.
Here's how you can grow your business with automated invoice processing:
