Invoice processing is a crucial task for any business that wants to maintain good cash flow, avoid late fees, and build trust with suppliers and customers. However, manual invoice processing can be slow, error-prone, and costly. How can you speed up invoice processing and improve your efficiency and accuracy? Here are some effective ways to consider.
One of the main sources of delay and mistakes in invoice processing is manual data entry. You can save time and reduce errors by using software that can automatically capture and extract invoice data from various formats, such as paper, email, PDF, or image. This way, you can eliminate the need for scanning, printing, or typing invoices, and ensure that the data is consistent and accurate.
Automate whenever possible. You can automate various parts of the invoicing process to streamline workflows and save yourself both time and money: Create recurring invoices. Schedule future invoices. Set email reminders for when invoices are due.
Another step that can slow down invoice processing is checking and verifying the invoice data against your records and contracts. This can involve multiple people and departments, and create bottlenecks and disputes. You can speed up this process by using software that can automatically validate the invoice data against your predefined rules and criteria, such as purchase orders, delivery notes, pricing agreements, or tax codes. This way, you can flag any discrepancies or errors, and resolve them quickly and easily.
First, Invoice should be processed & verified (2 way / 3 way matched) correctly, so it will pick up by the system automatically as well as link with the supporting docs like PO / GRN etc. if all these process correctly then it will be pick up in the payment batch within time or on it's maturity date and get released.
Once the invoice data is validated, you need to get approval from the relevant stakeholders before you can pay the invoice. This can also be a time-consuming and cumbersome process, especially if you have to deal with multiple approvers, complex workflows, or paper-based documents. You can streamline this process by using software that can automate the invoice approval workflow, and send notifications and reminders to the approvers via email or mobile app. This way, you can reduce the manual intervention, track the status of each invoice, and ensure compliance and accountability.
Another factor that can affect the speed of invoice processing is the integration of your invoice systems with your other business systems, such as accounting, ERP, or CRM. If your systems are not well integrated, you may have to manually transfer or reconcile data between them, which can lead to duplication, inconsistency, or errors. You can improve this situation by using software that can seamlessly integrate your invoice systems with your other systems, and enable data synchronization and exchange. This way, you can avoid data silos, enhance visibility and reporting, and optimize your cash flow and budgeting.
Finally, one of the best ways to speed up invoice processing is to monitor and measure your invoice performance regularly, and identify any areas for improvement. You can use software that can provide you with dashboards and analytics that can show you key metrics and indicators, such as invoice volume, cycle time, error rate, payment status, or cash flow. This way, you can track and evaluate your invoice processing efficiency and accuracy, and implement any changes or adjustments that can help you achieve your goals and standards.
Booking supplier invoices is old fashioned now. Automate and design a process and give access to all your vendors where they can do all the data entry and it comes for your authorization only where you can approve or reject??