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Running a business means that you have expenses and numerous vendors that need payment. Processing invoices from these vendors using manual techniques can be a major drain on time, financial resources, and people. To truly achieve efficiency in your business, it’s a great idea to invest in automatic invoice processing. Besides taking less time, we’ll discuss the other benefits an automated invoice approval workflow holds.
The Process
Anyone who works in Accounts Payable will tell you that managing invoices is not a two-step process. There are a few aspects involved in the payment of invoices. This includes receiving and capturing the invoice. You then have to match it with a purchase order and receiving reports. From here, it goes for approval, where it can also be rejected or amendments requested. Once it’s authorized, it goes to finance for payment routing, and after it’s been paid, you have to archive it for tax and auditing purposes.
This process involves plenty of paperwork, which takes time and can be draining to employee morale. It also leaves plenty of space for employees to make mistakes. Many people in AP state that approvals take too long and it becomes their burden to deal with unhappy service providers.
Automation Makes it Easier
Automated invoice approval workflow can streamline the process and make the payment to vendors much faster. Instead of using dedicated staff, or even teams, on-premise or SaaS software can streamline and accelerate the process of invoice approval.
Integration with ERP
Invoice approval software can help with invoice data extraction when you receive the invoice and integrate it with the business’s ERP system.
Faster Workflow
Accounts payable approval software will make the workflow faster by at least 50%. That means you can use your resources on other tasks. You can also get faster approvals on payments with automated reminders. Invoices are uploaded directly to the system, which means managers can easily access and approve payments. Administrators set rules for invoices to go to different users, which means the invoices go directly to the relevant manager or workflow.
Faster Payments
This faster approval process workflow means that payments are made quicker. It can help give you access to early-payment discounts and build a better relationship with your vendors, which could in turn lead to better deals in the future.
Better Financial Management
Automation also offers you real-time visibility of all your payments, which gives you the details of all your vendor payments in easily accessible and understandable formats. This provides you with vital information about your business cash flow and liquidity to help you make better strategic decisions.
Elimination of Mistakes
An automated invoice approval workflow will eliminate mistakes made by people, which will also save the business time and money. Another benefit is better management of your cash flow. With accounts payable approval software, you have better control over budgets, which allows you to control spending according to business rules, with visibility on both ends.
How Does Automation Work?
Invoice approval software leverages the technology of business rules to automate matching invoices to purchase orders or goods receipts. The system can also flag any exceptions and route these to an approver. The approver gets images of the invoices, purchase orders, and any internal messages.
You can choose what level of automation you want in your business, from simply capturing invoices, to managing the entire process on your behalf. The company behind the automation can help you integrate the software with your business, and to customize it to your unique needs. Most companies offer support as part of the package, which means that you can always get assistance when needed.
Conclusion
Making use of automated invoice approval workflow holds many benefits. This includes better use of your staff, who no longer have to focus on paperwork. The business will save money with the elimination of mistakes on invoice payments, and with quicker payments. You can take advantage of early payment discounts and build strong relationships with vendors.
Ensure that you reap the benefits of an automated invoice approval workflow and see what an impact it makes on your business.
