![]() ![]() i) You can avail of a discount on earlier payments. By switching to automated invoicing, your business can make timely or even early payment to suppliers. Enhanced supplier relationsĪs manual invoicing takes time, many invoices remain unaccounted for resulting in payment delay. However, machines do not err and automation removes these possible pitfalls of manual invoicing and makes the whole process smoother and accurate. When invoicing is automated, the probability of lost invoices, manual error in accounting the invoice amount, and misfiling of invoices decreases. Moreover, through automation, the risk of lost or missing invoices, misfiled invoices, and human error reduces significantly. Automation makes it easier for your business and the auditor to track invoices and match them against purchase history. Ease of sticking to compliance normsĪuditing your business and ensuring that it follows the compliance norms become easier with automated invoicing. You can easily check your invoices for any discrepancies, and wrong entries, and take the corrective measures required for correct invoicing. It becomes easier for you to track invoices through the automated invoicing system regardless of the number of invoices generated. Moreover, as the invoicing is captured timely, the possibility of a late fee on payments reduces. Through automation, the cost to process a single invoice comes down to as low as USD 1.Īs the costs reduce exponentially, the business can cut its operating costs to improve its profitability. Lower cost per invoiceĪutomated invoicing also cuts down the cost of invoice processing. ![]() In a survey conducted by Paystream Advisors among accounting and finance professionals, the following main benefits of automated invoicing were recorded:-įrom a 5-step process to a 3-step one, automated invoicing definitely saves time. The solution - Automated invoice processingĪutomated invoice processing is the best way to reduce the average cost to process an invoice and also to make the invoicing system effective. ![]() These costs, multiplied by the huge number of invoices generated by a business in a month result in a considerable business expense. The time and effort involved in invoice processing incur a considerable opportunity cost as the same time and effort could have been directed to more productive avenues that would have boosted the revenue of the business. Lastly, you cannot ignore the opportunity cost involved with manual processing. This requires auditing, and auditing involves additional expense. The invoices should also be checked to ensure that there are no errors. If the cost of paper is not enough, there is the storage cost too which is incurred in storing all the physical invoices. A large quantity of paper is used for recording invoices, and this involves a considerable cost. In manual invoice processing, another major cost is the cost of physical paper on which the invoice is created. The company has to employ individuals to go through the invoices, check them, and record to complete the invoicing process. The primary cost involved in manual data entry is the labor cost of manually recording and checking the invoices. Some of the primary costs incurred in manual invoice processing include the following:- 1. As per a report by Sterling Commerce, the cost of invoice processing through the manual mode ranges between USD 12 and USD 30 per invoice while for some firms it can also go up to USD 40 per invoice. Let's have a look at both of them, one by one:- Manual invoice processing and the cost associated with itĪs per the image above, manual invoicing is a multi-step process that requires considerable man-hours and processing costs. The Accounts Payable team can process invoices in 2 ways- manual and automated. It starts when your business makes a purchase resulting in the creation of an invoice and ends when the invoice is paid and its details are recorded in your ledger. What is Invoice Processing? The process of receiving a supplier invoice, matching it against the purchase order, and entering its data into an ERP system or general ledger is Invoice Processing. In this article, we discuss what are missing out on if you're still processing invoices manually and how can change it with an automated accounts payable solution. ![]() For smaller businesses that process a few hundred invoices a month, automation may be a far fetched idea but for businesses processing thousands of invoices in a month, automation is the preferred mode of processing invoices. For business trying to adopt automated data extraction solution for invoice processing in their system, the question of cost vs benefits of an automated solution tops the list. ![]()
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