There are several invoice processing solutions available that can help eliminate invoice errors and streamline the accounts payable process. However, it is important to note that not all invoicing solutions are built in the same way. For instance, some invoicing tools may have integration issues with other applications, while others may have limited customization options or lack the functionality to manage complex invoices.
Invoice processing is made up of several steps carried out by different teams within an organization. The creation of an invoice is the first step in invoice processing. The invoice can be approved or rejected by the assigned approver. If the invoice is rejected, it is returned to the resource for revision. If the invoice is approved, it is sent for second approval. If the second approver rejects the invoice, it is sent back to the vendor for further rectification. Finally, the approved invoice is submitted for processing and vendor payment. After the payment process is completed, the invoice can then be archived.
Traditional invoice processing can be tedious, particularly for companies with large vendor ecosystems. Manually entering invoice information from a paper invoice into a database is not only time consuming but also prone to human error. This manual process can cause delays in invoice approvals, which could erode customers’ trust and affect relationships with suppliers.
As a cloud-based invoice processing solution, AvidXchange has helped many mid-market businesses automate their accounts payable and invoice processes. AvidXchange seamlessly integrates with more than 225 widely used business accounting software platforms, as well as existing accounting or enterprise resource systems. For AP teams that might be dealing with complex accounts payable processes, AvidXchange can help streamline the core aspects of the procure-to-pay cycle, such as purchase orders, invoice management, and billing management.
How to Choose Invoice Processing Solutions
When choosing between multiple invoice processing solutions, it is necessary to have a clear understanding of your goals for onboarding a new solution, as well as firm grasp of how you currently process your accounts payable. For example, the best invoice processing solutions can automate the entire invoice-to-pay reconciliation and includes dashboards so you can monitor payment status, analyze AP key performance indicators, and identify bottlenecks so you can increase your productivity. Ideally, the right invoice processing solution should have a good user interface and easily integrate with your existing financial tools.
AvidInvoice can automate the whole accounts payable process, from receiving invoices to paying vendors and customers, while allowing businesses to keep their current banking relationships and workflows. Customers may view their payment and approval status at any time using AvidInvoice. Suppliers can also choose their payment methods, such as AvidPay, virtual card, or physical check, with this solution. With AP automation software such as AvidXchange, you can view the status of your payments and invoices as well as their various stages of approval.
How to Automate Invoice Processing
There are numerous advantages of automated invoice processing. Invoice automation benefits companies by freeing AP teams from having to perform routine tasks so that they can focus on more strategic activities such as preventing fraudulent payments and managing spend to drive business growth.
Automated invoice processing solutions can help you automate manual invoice processing and minimize time-consuming paperwork. Invoice data can be captured from email, paper, and electronic invoices and converted into searchable and editable text using automated invoice processing software. According to the Endava 2021 Payables Insight Report, 58% of respondents reported entering invoice information into their accounting system through software while 33% still do so manually. Important information on invoices includes the invoice number, the supplier’s name and address, and pricing details. The extracted information is verified, organized, and stored in enterprise resource planning (ERP) or accounting systems.
AvidXchange’s accounts payable invoice scanning software utilizes optical character recognition, or OCR, to convert handwritten or printed text into a machine-readable format. By utilizing OCR technology, AvidXchange converts invoices into electronic formats and automatically enter data into the platform for invoice processing. Users can receive, track, and approve invoices from any location using any connected device. AvidXchange’s cloud-based platform provides teams with more visibility into the accounts payable process by storing data in a secure server that can then be viewed on a single dashboard.
For invoice generation, vendors can send out invoice information directly to AvidXchange, and AvidXchange can perform invoice processing on your behalf. AvidXchange offers standard invoice templates that can be customized. With AvidXchange, you can utilize a digitized version of your old invoice template so you can keep using the same format that your teams are accustomed to.
What is AP Invoice Automation?
AP invoice automation involves the use of software tools for invoice payment automation as well as the entire invoice-to-pay reconciliation. AP automation can also help you develop your business by eliminating manual tasks in invoice processing.
AP automation can help improve transparency and visibility in your AP workflows by allowing you to predict where things are in the AP process and by making important data visible throughout the entire organization. This transparency can help you better manage your financial flow. Additionally, being able to visualize your AP processes from beginning to end allows you to analyze data patterns to track your business progress and how it may evolve over time.
By reducing paper-based operations and speeding up the invoice approval process, AP automation software can help you operate more efficiently. An invoice automation workflow can save you time, allow you to take advantage of early payment incentives, and help you avoid late payment penalties.
An automated account reconciliation solution could help reduce fraud by reducing manual invoicing errors and preventing duplicate billing. AvidXchange offers two-way matching, which compares a vendor’s invoice to the purchase order, as well as a three-way match, which ensures that the purchase order, invoice, and sales receipt are the same. This three-way matching can better protect the integrity of your AP processes as compared to two-way matching.
Automated Invoice Processing Oracle
AP teams in many organizations may be dealing with huge volumes of paper-based invoices from various sources, and invoice processing can be time-consuming and labor-intensive. In a manual process, invoices may be misplaced or lost in the mail, and there is a higher risk of invoice errors with human data entry. Oracle AP automation can be used to automate manual AP procedures, allowing AP teams to focus on higher-value activities to enhance business competitiveness.
AvidInvoice, AvidXchange’s automated invoice management software, can integrate with Oracle products such as JD Edwards and PeopleSoft to make invoice processing easier, faster, and more secure. AvidXchange can help improve your Oracle accounts payable process flow and Oracle payables invoice approval workflow.
JD Edwards and PeopleSoft users can process invoices and make electronic payments in a simpler, faster, and more secure way thanks to AvidXchange’s integration with Oracle products. AvidXchange’s payment solutions for JD Edwards and PeopleSoft include an innovative rebate program. In addition, by eliminating the need to use paper through AP automation, you may significantly reduce the hefty cost of invoice and payments processing and the time spent on manual AP tasks. AvidXchange’s integration with Oracle invoice processing solutions can enable you to transform the way your company settles its payment commitments.
Best Invoice Processing Software
When deciding on what invoicing software to use for your business, it would be helpful to examine various invoice processing software solutions to know their features and benefits and how they can help you optimize your AP workflows.
For example, the best invoice app should have customization options to fit into your current workflow. A simple invoice software with robust functionalities and a user-friendly interface such as AvidXchange would be particularly helpful for users with limited invoicing and billing experience.