No more tackling invoices one-by-one, giving accounting teams precious time to focus on other more pressing or strategic responsibilities. So when multiple supplier invoices are sent to the AP department, they are immediately uploaded into the online automation software for scanning and data capture. Matching accounts receivable against accounts payable Managing purchase orders and supplier invoicesĮxtracting data and entering it into ERP systems This speeds up the procure-to-pay process.ĪP automation is commonly used to streamline the following tasks: As mentioned earlier, without a centralized digital platform to document the progress of all invoices and expenses, duplicate and late payments are unfortunately common struggles for many businesses.Ĭompared with traditional accounting systems, accounts payable software solutions use workflow automation to cut down the number of steps and increase accuracy. If the supplier’s invoice bills an exceptionally large amount, then multiple rounds of approval may be required from the company.Īfter approval is granted, the invoice is marked for payment in the books. The invoice is matched to its according purchase order and sent onto the next touchpoint for approval, usually a budget manager. Traditionally, manual invoice processing starts when a supplier invoice is delivered to the accounting team, either physically or electronically. How does automated invoice processing work? Which in turn helps the company scale.ĭepending on which invoice management software you use, your finance teams can benefit from increased visibility and control over the entire AP process. The purpose of automation solutions is to let teams work faster, reduce oversight, and increase accuracy. These platforms will automatically extract invoice information, then populate this data into your AP systems, eliminating error-prone manual data entry. The real game-changer for the accounts payable system is automated data extraction and invoice matching. There are several AP automation tools on the market, their basic premise being the ability to submit and approve purchase orders and invoices digitally, rather than physically handling and depositing them. In this post, we break down exactly what automated invoice processing is and how it works, the key benefits it brings to finance teams, as well as Spendesk's new invoice feature.Īccounts payable automation uses digital tools or processes to eliminate the manual aspects of accounts payable by automating them with software instead. By eliminating slow, repetitive processes that waste countless hours each month, finance teams save time and money, while simplifying cross-team collaboration and driving company growth. So it's no surprise that a growing number of finance teams are turning to process automation to solve these struggles. However, even the most organized paperless AP systems can still result in double handling, duplicate payments, and delayed reimbursements––risking supplier relationships and frustrating employees. Processing paper and electronic invoices by hand requires the involvement of multiple stakeholders, including the supplier’s point of contact, budget managers, and financial controllers.ĪP departments still handle too many responsibilities manually, from purchase orders and supplier invoicing, to approvals and accounting. Invoice processing is traditionally one of the most time-consuming tasks for accounts payable and finance teams, at companies of all sizes.
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