Companies can seek solutions that promote business growth possibly with the help of online invoice payment processing software. Such systems could help them track, receive, and approve invoices via one centralized, cloud-based system. Moreover, online invoice payment processing could ensure that invoices are scanned and coded before being sent to the proper channels for approval. From there, payments to suppliers could be authorized.
The best invoice payment solutions allow businesses and accounts payable teams to reap the potential benefits of streamlining the AP process. Some possible perks may include time and money saved from a decrease in paperwork, reduction of overhead costs, elimination of workflow redundancies, and avoidance of mistakes that affect a company’s bottom line.
AvidXchange could help by offering an invoice processing software designed to help increase accounts payable efficiency and cut company costs. No matter how many suppliers a company must pay on time, online invoice payment processing with AvidXchange could help them be paid promptly and according to their preferences. AvidXchange is backed by a network of suppliers consisting of over 700,000 suppliers, which could allow for suppliers to be paid as they requested.
How Long Does It Take To Process an Invoice?
An AP clerk on average can manually process five invoices per hour translating to 12 minutes per invoice, according to Coreintegrator. Using invoice automation, this clerk could process up to 30 invoices per hour (2 minutes per invoice) – six times faster. We cover the topic in more detail in a blog article about invoices processing software.
Businesses need to know how long it takes an invoice to go from indexing to approval. However, determining this information without using technology can be challenging. AvidAnalytics, an embedded BI solution includes an Approval Metrics dashboard that quantifies the average number of business days it takes for an invoice to be entered or approved.
How Much Does It Cost to Process an Invoice?
It costs businesses approximately $22 to manage the process manually starting with the receipt of the invoice until the payment gets made, notes Aberdeen Research. Using an AP automation process, that cost drops to approximately $10.
Businesses typically spend up to 70 percent less time using AP automation instead of manual processes, Goldman Sachs reports. These companies speed up invoice approvals from approximately 10 days to three days.
How do You Process an Invoice for Payment?
Online invoice payment processing can be a faster way for a business to grow while saving valuable time and money. By switching to a paperless invoice processing system, companies can possibly increase their security, reduce manual tasks, and use their time where it is needed most. There are five major steps involved in invoice processing:
- capturing the invoice data into an electronic editable text format using Optical Character Recognition technology;
- checking to ensure the invoice amount, vendor and date match the purchase order and receipt data;
- resolving discrepancies between invoice, purchase order and receipt amounts or vendor names;
- forwarding the invoice for approvals
- posting the invoice to the accounting system and ERP; and
- paying the invoice.
Online Invoice Payments
The best online invoice payment processing software can lighten the schedules of the employees in an accounts payable department. They could then focus on how to save their company money instead of simply managing how it is spent. As of now, some accounts payable departments may spend a large portion of their workday on manual invoice tasks like inputting invoice data into the system.
Innovative invoice processing can possibly save a business time and money. AvidXchange can provide companies with a practical invoice payment method example in the way they handle online invoice payment processing. AvidXchange allows users the option to track an invoice payment pending via one dashboard that can be accessed anywhere at any time with a device with a working internet connection. As a result, users can track the entire invoice procedure from a received invoice to a paid invoice, meaning users can monitor the payment process from start to finish. The dashboard shows when an invoice has been approved so an accounts payable team can promptly send their payment to a supplier in a variety of payment methods.
By automating invoice processing on the AvidXchange platform, invoices can be coded, assigned for review to the right people, then electronically sent for approval to the designated person before the payment is sent to the suppliers. This can ensure a company’s bills are paid on time with a potentially reduced risk of payment penalties. Online invoice payments can allow an accounts payable team to be free of invoice redundancies and data-entry duties so they can focus on how to financially grow their business.
Invoice Pay Company
For accounts payable teams that deal with a number of invoices, they may not have much time to spare on menial, manual tasks. In an effort to ease their workload, they may seek out an invoice pay company that can guide them through every step of the process. Some of the best accounts payable automation software could potentially save employees time that they would have otherwise spent on manual accounts payable tasks. Accounts payable process improvement begins with specialized automation tools that help eliminate data entry and manual invoice processing.
Online invoice payment processing begins when invoices are scanned into the system. Artificial intelligence (AI) automatically codes the invoices per the accounts payable department’s preferences. After the invoices are coded, they are delivered to the person responsible for approvals.
A scanned invoice provides data that the platform will use to send a particular invoice to a certain person, as well as identify vendors. This feature can expedite invoice processing by automatically pushing the invoice to the next person in the chain and gathering payment preferences.
Mastering how to pay an invoice accurately and promptly can take considerable effort. Online invoice payment processing gives businesses the tools to accomplish their accounts payable duties. These tools can be essential for middle-market companies to sustain their revenue.
Not all suppliers desire to be paid in the same manner. Some prefer physical checks, while others prefer electronic payments. AvidXchange can work with a network of over 700,000 suppliers to help provide numerous invoice payment options so that companies can adhere to their suppliers’ preferences.
How to Pay an Invoice Online
Knowing how to pay an invoice online can potentially expedite the process, which is why companies may seek out an invoices app. If an accounts payable team knows what to expect, they can use that knowledge to further streamline their workflow.
AvidXchange’s software allows users to customize their approval process. They can set the internal controls to mirror their company’s current approval process or create an entirely new set of protocols based on the accessibility that AvidXchange offers.
Users decide who approves what type of invoice, how long they have to complete each approval, and what happens once the approval is given. AvidXchange’s online invoice payment processing includes notifications that can be adjusted based on an accounts payable team’s needs. Companies can also customize the system to meet the specific current workflow of their accounts payable team.
With the right software, paying invoices accurately and on time could be a more manageable process. Accounts payable staff do not have to manually oversee the process when they use online payment software.
Billing and Invoicing Process
When accounts payable procedures are delayed, it may keep suppliers from being paid on time. This could happen when accounts payable teams must rely on traditional methods of invoice payment processing. AvidXchange’s automated billing and invoice solution could assist in streamlining the process in this regard and help ensure that suppliers are paid according to their specifications. AvidXchange is backed by a supplier network of over 700,000. This network could ensure that suppliers could be paid via the method they desire, be it direct deposit, card, or check.
Online invoice payment processing could also allow for invoices to be scanned and coded according to the preferences of the team. Once that task is completed and all the necessary information is available, the invoice could be presented to the person tasked with approving invoices. Once the invoice is approved, payments to suppliers can be completed.
AvidXchange provides an invoice template that can help accounts payable teams set the parameters for their invoice workflow. They can customize the template to fit their company’s accounts payable needs. Because of the cloud-based platform, accounts payable team members can view the statuses of current invoices when they see fit, so long as they have a device with access to a stable internet connection.