A Load Off Your Mind (and Your Desk): Why Invoice Processing Is A Godsend For Busy People
If you work in an accounts payable department then automated invoice processing can reduce your workload significantly. Even if you don't work in accounts payable, but are a manager who routinely signs off invoices, then an automated system can still help. With no more paper invoices floating about it is easier to manage the entire invoicing procedure and not have to worry about things going missing in the internal post and going unpaid.
Invoice processing software works in a very simple and straightforward way - if you haven't come across this type of electronic application before then here is how it works.
What is Invoice Processing?
Invoice processing can come in two forms. Your invoicing can be outsourced to a company who will take care of invoicing on your company’s behalf, or you can invest in invoice processing software yourself. Invoice processing software provides an integrated way of dealing with invoices from reception through payment and then passing onto a ledger. It involves various stages during which the invoice is changed into a data format readable by the software, validated, matched to purchase orders, approved and then stored for future recall. There are also exceptional handling measures built into the software so that any queries can be dealt with efficiently and effectively.
How does it work?
Invoices come in varying formats depending on the supplier. They can come in paper form or in electronic form. If an invoice is received in paper form then the accounts payable clerk is able to scan in the document into invoice processing software.
If received in an electronic form the software can detach the invoice documentation from an email. It is then changed into a format readable by the software. The software then validates the invoice against existing supplier and procurement databases. If the suppliers don't appear in this database it will be pulled up for manual verification. Next the software matches the invoice against purchase orders. The electronic invoices are then forwarded on for approval and then onto ledgers for recording. Finally the invoices are stored so that they can be viewed in the future should the need arise, creating a clear and definite audit trail. All of this is electronic and done over a network, often in emails.
Why is it good?
It should be apparent why invoice processing is invaluable to a company. Firstly the whole process is automated so that it is a faster and cleaner method than the normal paper-based methods. Less staff are needed to work through incoming invoices; there is no time wasted sending invoices back and forth in the internal or external post; documentation is less likely to get lost; there is a clear audit trail and everything is carefully stored in electronic formats. Subsidiary benefits are that physical space, for storing and filing, is no longer needed. Also it is more environmentally friendly as there is less paper involved. If you can encourage your suppliers to send their invoices in electronic formats then the process is speeded up still further and there is less wastage.
There are many companies on the market today offering extremely good outsourced services as well as software and support. With the benefits being so high, and the saving so great can you really afford not to consider the possibilities offered by electronic image processing?
Visit Image Integrators for invoice processing software. Permission granted to re-distribute this article granted as long as a link to our website remains.
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