The invoicing process has long been a strain on businesses of every size. The cost of managing invoices has been estimated to be about £15 per invoice. Scheduling and tracking down payments take time and can be a drain on your accounts receivable department and valuable human resources. That’s why so many companies have chosen to implement innovative invoice management software to streamline processes via automated solutions. 

As businesses scale operations, so do the number of invoices they have to send and process, and as those increase the manual processes that once worked well start to break down.  An invoice received by a vendor has to be checked by the contact person and the finance department. If there are issues, then it’s usually sent back to the vendor by email to be addressed, which introduces delays.  And the data from these invoices is often manually entered or copied into spreadsheets or accounting software, which can introduce errors, especially as the volume of invoices goes up.

Invoice management software automates several processes, helping both senders and receivers.  First, it scans all invoices received and extracts the relevant information needed to process the invoice. The data is then automatically entered into the business's accounting software via integration.  Reviewers can check the invoice for issues, and the system will automatically request changes from the vendor if needed as part of an automated approval process.  A vendor using invoice management software can generate invoices easier, and with fewer errors.

There are numerous benefits for both businesses and vendors in any industry when it comes to implementing an invoice management system.

Some of the top ones include: 

Fewer errors and delays

Automated processes eliminate the need for manual data entry that can introduce errors. Reducing errors prevents the back-and-forth delays that can slow down invoice processing and payment.  

Lower costs 

Implementing invoice management solutions is cost-effective and can create drastic cost savings depending on the processes you choose to implement. For example, since it virtually eliminates labour and storage costs, in addition to the necessity of retrieving lost or misplaced invoices, companies can save a significant amount on each invoice they process, in some cases by up to 75%.

Accessibility

For enterprises preparing for an audit or that need to share invoicing information across all levels of their organisation, or with vendors or other stakeholders, invoice management software makes information much easier to access. This can be especially useful when companies need to perform an audit or close assessment of their processes. 

Fraud detection

Invoice fraud is a huge issue, accounting for almost 55% of all fraud in the UK.  Added oversight provided by automation minimises the chance of processing fraudulent invoices, catching them and flagging them in advance, and forwarding them to the proper parties for resolution. 

Increased compliance and accountability 

Every business in every industry has compliance regulations to follow when it comes to invoicing, and automated solutions and invoice management systems can ensure that your enterprise follows all necessary industry regulations and best practices. If you are doing business in EU countries, you’ll need to comply with regulations in those regions.  

Additionally, if there’s ever an issue or something goes wrong on the client or vendor end, that issue can be quickly resolved and it’s much easier to address who’s accountable for the situation. 

Improved vendor relationships

By offering improved, streamlined payment methods your vendors will quickly take notice because invoice management solutions improve the business-to-business (B2B) invoicing process from all ends. It makes it easier for vendors to track invoices, initiate recurring payments, and get paid quicker.

Invoicing software not only assists with receiving invoices, but creating them and managing outgoing processes as well. 

Creating professional invoices

Invoicing software enables your enterprise to create professional invoices based on industry standards that follow all necessary guidelines and regulations and are clear, concise, and easy for vendors and staff to digest and track. 

Customising templates for business needs

Every industry and business is different, therefore it’s not surprising that often there will be a need for developing customised templates for different invoicing needs. For example, invoices for clients and vendors dealing with specific products, B2B services, fees or added additional payments, etc. New invoicing software has many templates for different processes that can be customised to fit your organisation's needs. 

Automating the invoicing process

An invoice management system simplifies automation. It can easily integrate into your existing software platforms. It can also integrate with other SaaS services such as ERP systems, CRM solutions, and logistics tracking.

By integrating these systems, and automating workflows the business can invoice for completed work faster, ideally, also getting payment faster as well.  

In addition to managing invoices, invoice software can also help set up online payment workflows. 

Streamlining the payment process with online payments

Processing invoices manually can take over two weeks, but automated systems process invoices immediately upon receipt.

Simplifying digital payments and receipts with online invoicing software

Invoicing software aims to simplify digital payments and receipts for everyone involved, making them easier and more straightforward. Automated software speeds up invoice processing and provides tracking solutions to streamline the process.

Reducing human error with automation in payments and receipts

By using invoice management software, you can increase the accuracy of your invoicing processes. It utilises scanning and capturing technology to automatically gather invoice data and input it into your system. This helps humans prevent errors.

Preventing late payments with automated reminders and payment tracking

Since all your invoicing procedures will likely be automated, there’s no need for manually scheduling payments or tracking down late ones. This means that you are more likely to get paid on time because clients and customers will be notified when a payment is coming due, and receive automated reminders if a payment is behind. 

Streamlining accounts payable teams with accounting software

Accounts payable departments often spend hours tracking down the payment history of customers and company payments to vendors, trying to identify accounting errors, and more. Unfortunately, this is a drain not only on human resources departments but accounts receivable and cash flow as well. But automated invoicing software can solve that by providing a user accessible repository of online payment history. 

It’s easy to see from the points above that invoice management software streamlines the invoicing process, and provides numerous advantages and benefits for companies of every type and size. You can reduce costs and focus important resources elsewhere and work on scaling your enterprise and keeping all stakeholders happy with your invoicing processes.