Specifically, there are five main steps that make up this cycle. First, there is the purchase requisition. In purchase requisition, the company recognizes a need for specific supplies in order to continue doing business. It is also in this stage that the company will choose its preferred supplier for this purchase. The second step is the purchase order or PO. In this stage, the company creates a purchase order describing exactly what the buying company agrees to pay for. This purchase order is then sent to the vendor. Once the vendor receives the PO, they will often reply with an order confirmation so that the buying organization knows that their order has been received and is being fulfilled.
Once the order is delivered, you, as the buying company, must send a delivery confirmation to the supplier. Finally, the supplier will send your business an invoice requesting payment for the listed goods. Depending on the amount of the invoice and the practices in your industry, you may apply two-way matching to validate the invoice. What is two-way matching? It’s a practice of verifying an invoice’s details by comparing the goods being paid for on the invoice with the goods requested in the original purchase order.
Once the invoice has been matched, it will then have to be coded into the business’s system of record and sent to the appropriate team members for approval. Finally, the invoice is paid, and money is sent to the supplier. Then, the cycle begins all over again.
As you can see, managing invoices is a crucial element of the P2P cycle and a core part of your business’s ability to scale up. The problem is that most companies continue to rely on traditional, paper-based systems that can create so many inefficiencies. There is a better way. It’s called online invoicing software. Cloud-based invoice software can help you automate the invoice processing workflow resulting in impressive cost savings, more incredible speed, and happier employees. Invoicing apps like AvidInvoice from AvidXchange create a single source of truth for your entire accounts payable team. Plus, because the billing software is cloud-based, you can get 100% visibility from anywhere and at any time.
The problem is simple. Most accounts payable teams are overwhelmed with tedious, repetitive paperwork. Special initiatives, sales, and projects can be entirely derailed by the delays and errors stemming from your organization’s reliance on manual invoice processing. The situation is untenable. Vendor invoice management systems are critical to ensuring that your business is flexible and successful. How does invoicing software work? It all starts with the humble invoice. Most of these will arrive at your organization in paper form or possibly PDF. The invoice is first scanned into the system or uploaded as the case may be. Then, the software automatically extracts all the relevant data and completes the processing. Once the files are in the system, hundreds of invoices can be processed in bulk with just a few clicks, saving you and your team hours of time and a great deal of money.
The best invoice management software platforms are not just robots for processing invoices. They also provide an easy way to access records of past invoices with a simple search. That means no more searching around for records when audit time comes around. With an end-to-end automation solution like AvidXchange, you can get rid of those piles of paperwork on your team’s desks and free up more time for working on higher-value tasks instead of basic administrative duties.
Best Invoice App
So, what is the best invoice app? The answer is: it depends. Different applications are going to provide different levels of functionality and will be at various price points. It’s not as simple as just finding any invoicing app download and going for it. We recommend reading more than one invoice app review to see if others have found the tool useful. Certain features are crucial. For instance, if your team has specific approval processes and workflows, you don’t want to have to disregard those with a new system. Fortunately, with AvidInvoice from AvidXchange, you can use our custom workflows feature to maintain the same processes that your team is accustomed to.
One of the other things to look out for is how well the invoice app integrates with your current accounting system. Invoice processing systems do not replace your accounting system as your primary system of record. That’s why you need to make sure both systems integrate seamlessly. Fortunately, AvidXchange has already created 225 integrations between our AP automation software and the most popular accounting systems.
One of the best invoice apps for middle-market companies may well be AvidInvoice from AvidXchange. Avidxchange has the experience you can trust. Our solution processed around 62.5 million transactions and over $180 billion in 2021 alone. We’ve been in this industry for over 20 years and know exactly what your business needs to make your accounts payable processes more efficient and affordable.
Invoice Billing Software
One of the critical issues with manual invoice processing is its impact on your accounts payable team. When you put an entire group of employees on basic, manual tasks, you are not taking full advantage of the creativity and ingenuity that human intelligence can bring to your business. Furthermore, the tedious nature of paper-based processes can take a negative toll on the morale of your team members.
At first, this demotivation can lead to other errors and mistakes. Eventually, it can lead to you losing valuable employees which only creates more headaches for your business. The way to avoid these issues is to rely on invoice billing software. If you’re curious about what options are available for this kind of solution, you can search for a list of invoice billing software platforms. These lists are fairly prevalent and often include invoice billing software reviews that can be helpful.
Invoice billing software can help you pay invoices faster, meaning that your suppliers will get their money sooner than they had hoped. This can lead to stronger relationships between you and your suppliers who will appreciate your new timely payments. Furthermore, some suppliers will even offer discounts to organizations that can rapidly pay invoices instead of the normal 1-2 week delay that often occurs.
Invoice Management Software
Well-built invoice management software works with you and not against you. By making it easier for your employees to process invoices, an invoice management system can free up more time for your team members to focus on higher-value tasks, leading to more rapid business growth. Despite the high-profile hacks you may hear about in the news, data tells us that e-payment methods are actually far safer than paper-based processing. Practically, this makes sense. It’s far harder to figure out how to hack a secured computer system than it is to simply write a name on a check.
AvidXchange features a secure invoice management login so that you can ensure that only authorized users are allowed access to your accounts payable. This creates an additional layer of security so that you can process invoices with peace of mind.
Invoice Software Download
One of the key things to be aware of when it comes to an invoice software download is whether or not the solution utilizes OCR technology. OCR technology stands for optical character recognition and allows computer systems to “read” documents much as we do as humans. The problem is that most documents are not stored in formats where the data is structured. Unstructured formats like paper documents or PDF scans need to be scanned and the actual data extracted. That’s where OCR technology comes in. Extracting the data from the documents can then be structured and stored in a computerized format. The best invoice billing software relies on machine learning (AI) technology to rapidly digitize invoices so that they can be processed and stored within a central system. The advantage that AI brings is that invoices don’t have to conform to a rigid invoice template in order for the data to be processed accurately. This gives you more flexibility.
Best Invoice Software
When searching for the best invoice software, looking at a top 10 invoicing software list can be helpful. However, some of these lists may be paid for by a particular company, so be aware of bias. AvidInvoice from AvidXchange is a great example of invoice software that allows you to take advantage of the opportunities of automation without losing the benefits of control. With custom workflows and other features that enable you to maintain clear organization, AvidInvoice also lets you search among invoices with just a few clicks. Automated invoice processing software like this can allow you and your organization to move to a completely paperless workflow, where costs associated with managing paper are long forgotten. This is the future of accounts payable.