The typical accounts payable cycle involves several different steps an invoice must pass through, such as data capture and approval. An electronic invoice processing system could help expedite this process and as a result provide a seamless, efficient way to get invoices through the processing pipeline. Digitizing your payment process could also help reduce the amount of paperwork that your accounts payable team must manage and process. Many middle-market companies today may find that they prefer using an online invoice system rather than having to manage and process so many invoices manually, which can take time and resources away from other pressing business matters.
Invoice processing systems could also be more secure than more traditional methods of managing accounts payable. Having invoice payment information accessible via a centralized, online platform could reduce the risks that may be associated with sending out paper payments and invoices. An invoice processing system that allows businesses to streamline the accounts payable system could also allow AP teams to access the information they need from any location, so long as they have an internet connection and a functioning device.
Overall, billing and invoice processing may be significantly streamlined by using a good invoice processing system. That said, many accounts payable team managers may still wonder, how exactly does it work, and where does AvidXchange enter the picture to help your business optimize its payment processes? AvidXchange could help simplify the process of receiving, tracking, and approving invoices via a single digital platform, while in turn ensuring that suppliers can be paid on time.
Billing and Invoice Process
Although the billing and invoicing process can prove challenging for many middle-market businesses, certain software may be able to remove some of the guesswork associated with various types of payments and invoices. In addition, some companies may opt to use a billing process flow chart that outlines the specific procedures to be followed in order to make the process run as smoothly as possible. Having a detailed set of billing process steps to refer to can make things easier, whether you are using a manual or an electronic processing system. The billing process in accounting can be made especially easy this way, and those in charge of managing payments appreciate having access to a complementary software system that aids them in their existing operations.
You can streamline the entire accounts payable process by using automated software, after which approved invoices can move straight to bill payment processing. AvidXchange offers billing processing software that could allow middle-market companies to streamline invoice processing. More specifically, this software could allow users to automate fast and secure B2B bill payments backed by AvidXchange’s robust supplier network. This network contains around 700,000 suppliers.
AvidXchange’s software could also enable users to create custom workflows with 24/7 visibility into bill payment status and approvals. This could ensure that your accounts payable team can keep their current systems and software in place while still reaping the benefits of an efficient invoice processing system. Middle-market businesses could also reduce bill payment processing costs by eliminating check printing, envelopes, postage, and time spent following up on uncashed checks.
Invoice Processing Procedure
The standard operating procedure for invoice processing typically follows a certain invoice processing cycle in which an invoice is received, scanned, filtered through the appropriate channels, and sent to an administrator for approval. However, accounts payable teams can possibly speed up the invoice processing procedure with an automated system.
There are a number of benefits associated with automating your invoice processing procedures. First, following these accounts payable process steps with automation can improve visibility into your invoices. In fact, automating accounts payable can provide 24/7, remote access to your payment data. This is especially useful for companies with a largely remote or hybrid workforce. That way, your accounts payable team can view the statuses of invoices at any time. Second, this type of technology allows for more efficient processing overall, reducing or potentially eliminating reliance on large volumes of paperwork and processing paper invoices.
Automating your billing procedures also helps cut costs. Managing excessive amounts of paperwork, physically getting invoices to an approver, filing the invoices, and then searching for them for auditing can be costly and time consuming. Automating these procedures, on the other hand, could allow your company to reduce the volume of paperwork your business must handle. It could also provide opportunities to earn rebates from paying suppliers electronically rather than by check, which could potentially save your business money.
Automated Invoice Processing
One of the best ways to make the most out of your automated invoice processing software is to integrate with third-party applications. By doing so, you can better streamline your payment processes, taking advantage of external tools that may not be accessible within your organization. The best automated invoice processing software is one that can easily adapt to various platforms and evolve alongside their users’ needs. This is one of the main reasons why invoice automation software benefits from third-party integrations.
AvidXchange currently offers over 210 software integrations to users. It has partnered with SAP Concur Invoice to deliver user-friendly, flexible payment automation solutions built to help businesses eliminate risk-prone, inefficient payment processes and pay bills more easily. This SAP automated invoice processing system is great for all businesses. AvidXchange has also integrated with Oracle JD Edwards. The automated invoice processing Oracle integration helps users incorporate easier, faster, and more secure ways to process invoices and make electronic payments. AvidXchange’s integration with Oracle PeopleSoft brings yet another great automated invoice processing software to the table. AvidXchange offers PeopleSoft users payment solutions that help them discover how to transform their payment departments into profit centers through a rebate program.
Invoice Management Process
The invoice management process does not necessarily have to be a time-consuming affair. In the modern business world, middle-market companies can benefit from adopting digital invoice processes. An invoice management system can run more efficiently if it is converted to electronic form, and there are a number of different features you can take advantage of with this type of software as opposed to a more traditional system for billing processing.
It can also be helpful to implement invoicing policy and procedures with your payment operations. This can make it easier for your teams and vendors to understand different billing features, how invoice processing works within your organization, and how to keep things moving according to schedule. Vendor invoice management can be handled exceptionally well with an automated system, but it is important to have a thorough understanding of your company’s existing policies and procedures to determine where and how this technology might fit best into your workflow.
Vendor Invoice Processing Checklist
Invoice processing software can help enforce the internal controls of your accounts payable department. At the beginning of the invoice checking process you can automate invoice matching to check if information from the invoice matches your purchase order. This is just one example of what software can track during invoice processing to limit human errors and catch more mistakes automatically. Creating a vendor invoice processing checklist can also help simplify vendor invoice processing. It can help you ensure that you aren’t skipping over any information and keep your processes aligned with whatever plan or defined steps you set prior to implementation.
Likewise, an invoice verification checklist might be useful for keeping track of the invoices that have been verified and those that still need to go through the approval process. To do this, accounts payable teams may draw up an invoice audit checklist to keep processes running smoothly when it comes time to conduct audits on your billing and invoicing systems. You might also devise an accounts payable checklist template to better organize your methods for paying your vendors.
Invoice Processing System Architecture
AvidXchange could help streamline the entire accounts payable process by allowing users to seamlessly follow their outlined invoice processing steps and move them straight into the bill payments process. Whichever invoice processing system architecture you are currently using, an automation platform may be able to meet your needs and expedite the process.
You can use an invoice processing flowchart to create an invoice approval policy or any other critical elements that go into designing an adequate AP system. Although it can be tricky to get started, having an invoice processing system can ultimately improve your payment processes in a number of different areas. Fortunately, AvidXchange could help middle-market companies manage invoice processing so that suppliers can be paid on time. Accounts payable teams can also check the statuses of invoices at any time via the digital, cloud-based platform.
