Automated invoice processing: 5 elements a good solution meets
Manual operations are becoming increasingly out of date. The average financial administration is now aware that automated invoice processing saves an awful lot of time. And if you use a good solution, you reduce monotonous, repetitive work to the absolute minimum. But what elements should a solution actually include to digitally process received invoices? What can you expect from an implementation process? And how do you benefit from this type of software in daily practice?
The evolution of financial accounting: from paper invoices to digital invoice processing
‘Old-fashioned’ paper: áf it’s still present in the finance department, you’re probably trying to get rid of it. Most organizations strive to be a paperless office. This is understandable, because manual invoice processing involves quite a few actions: after receiving the invoice, you select the creditor, type in all the details, split up the invoice and create an entry. And then you still don’t have a digital (pdf) version. If you need to look up the invoice later, this will cost you a lot of searching. If you work with digital invoices, your way of working is a lot less cumbersome. A total solution for automatic invoice processing puts an end to paper invoices and takes over time-consuming manual tasks. So it’s high time to look into the definition of a good solution.
1. Smart OCR software
“OCR” stands for “optical character recognition. If you want to know more about this, read our blog post “What is OCR?The short explanation is as follows: smart OCR software has a high level of intelligence. A smart OCR program interprets invoices as a human would and has a self-learning capability: it observes how you as a user handle the suggested values and then automatically adapts itself. In addition, you are part of the user community from the beginning. The system shares the knowledge it gains within this community, making it ever smarter. And as a user, of course, you benefit from this knowledge.
2. Uniform processing of all invoice formats
Nowadays, you receive an enormously diverse flow of documents. It is convenient if all (digital) invoices are automatically read and arrive in your system in a uniform way: from e-invoice to PDF invoice. And you actually want to process all those documents in the same way. In short, the format and channel of entry should not be an issue. So choose a total solution that allows you to process all incoming invoices efficiently, quickly and unambiguously.
3. Recognition of other documents.
Digitization has taken off. Therefore, it is important to choose a solution that does more than digital invoice processing. Looking to the future, it is useful that OCR software can recognize all kinds of documents. Think of order confirmations, orders and declarations. In short, see if the solution of your choice can handle document processing in the broader sense of the word.
4. Digital workflow
Approving a single purchase invoice is often an entire process. In many companies, several employees are involved. You can mail an invoice around or – worse – pass a paper version past several desks. But this way you create a lot of work for yourself. In addition, the process slows down considerably. If you opt for a total solution that includes a digital workflow system, the process is automatic and simple. The system ensures that invoices go through a digital path to the correct approvers. If you use advanced workflow software, you can use built-in functions to indicate that invoices in a certain category (such as fuel bills) should always be sent automatically to specific colleagues. They will be notified when an invoice is ready for approval. If a smartphone app is part of the total solution, they can not only approve via desktop and laptop, but also via smartphone or tablet. How convenient!
5. Good linkage with your ERP system
It is crucial that an automated invoice processing solution provides a good link to your ERP system. That way, you need to perform fewer operations. This leaves you more time for tasks that really add value to the organization. Do realize that a technical connection alone is not by definition sufficient. If you really want to take the burden off your shoulders, see whether your OCR supplier has in-depth knowledge of the market and your sector. In addition, a close partnership between the OCR supplier and your ERP party is essential. If this is the case, you will not be sent from pillar to post. You can book and approve an invoice really efficiently and very quickly. This saves time and ensures that the invoice is payable within the required period.
Made a choice? Here’s what to expect from an implementation process!
Usually an implementation consultant takes care of the process for your company. He will set up the software so that you can work with it perfectly. Wondering how such a process works? Usually you go through five steps together:
- Assessment: the consultant maps out your work process with you and explains what the solution will do for you.
- Software installation: the consultant sets up the software for you, then you book a test invoice together step by step.
- Explanation: during one day, the consultant gives a basic explanation of how to process standard and complex invoices, giving you a chance to practice with the solution.
- Discussion of test results: after an independent testing period, you will have another discussion with the consultant and can ask all your questions.
- Going live: after this conversation, you go live! The consultant sits next to you to guide you and answer additional questions directly.
Processing incoming invoices automatically: the ‘post-implementation benefits’ at a glance
- Faster processing of incoming invoices;
- Number of errors minimized;
- Coordination of flows;
- More efficient approval process;
- Digitally searchable archive.
Taking a look into the future?
Learn more about how to future-proof your administrative process.
