Does your company receive hundreds or thousands of emailed invoices that need to be keyed into your accounting system manually? If so, you could be losing a lot of money through invoice processing.

A 2012 AP automation survey report revealed that on average, companies spend around $25 processing one invoice through a paper based system. 

Manual management of invoices is a costly business. It is also plagued with human errors and lower operational efficiency.

Many companies are now adopting automated invoice process management techniques in a bid to simplify the invoicing process and minimize costs. 

With invoice automation, you'll not only be able to process invoices quickly and with accuracy, but also eliminate errors and chances of losing invoices.

Here are the advantages of automating the invoicing system. 

1. Cost Saving

Cost saving is perhaps the most obvious benefit associated with automating the invoicing system. Manual costs can range anywhere from $8 to $60 per invoice. 

Why the difference?

Apart from the usual storage and labor costs, there are other hidden costs that many users don't take into account. These costs are in relation to manual routing, multiple handling, classification, as well as filing and misfiling.

In fact, locating lost and misplaced invoices can push the cost up to $100.

Invoice system automation not only minimizes costs but also helps to solve most of the invoice related problems. Companies that have switched from manual to automated invoice processing have managed to save costs by up to 20%.

2. Time Saving

According to a recent survey by the Aberdeen Group, automation can take down invoice processing time from 20.8 to 3.8 days. Employing a system that saves time can propel a company forward in many ways.

Such a system ensures that vendors are always paid on time, and customer deadlines are met. 

With an automated invoice process management system, all members of the AP department can be able to follow the invoice with ease.

An automated system also eliminates the need to send invoices via email for approval, a process that is time-consuming. In fact, every employee in the AP department with system access can view and print invoices easily.

3. Reduce Physical Storage

There is nothing inspirational about having a file cabinet in your office. It not only takes up valuable space but also encourages paperwork. 

Reducing the amount of paperwork in your office can help to cut costs in two ways: saving on office supplies and reducing the storage and handling costs.

By going digital, files will never be defaced or misplaced and can also be accessed with ease. It also helps to reduce physical storage since all invoices are stored electronically. 

4. Invoice Processing Reduces Error Rates

Manual processes involve a lot of human intervention and are thus associated with a lot of errors. Such errors can range from input errors and duplicate payments to missing information and delayed payments.

Human errors cost businesses time and money. In the worst-case scenario, they can have huge implications on governance and corporate image. 

Invoice automation minimizes error rates and significantly reduces costs associated with errors.

5. Faster Approval

We live in a digital world where everything is done online - from buying to payments and deliveries. As such, delays in payment can make you lose valuable goods to your competitors. 

However, with an automated invoicing system, delayed payments can be avoided owing to the faster approval on the move.

Managers can approve purchase orders no matter where there are, and from any device - be it from a smartphone, desktop, or a tablet.

Wrapping Up

Setting up an invoice processing system can help boost your company's productivity in many ways. 

Besides the cost related benefits, an automated invoice system can help you to free up employees for other tasks. It can also help you build better relationships with vendors.

Contact us for more information on Invoice Management Systems. We specialize in providing software based solutions geared to enhancing the productivity of employees and overall profitability of the company.