8 Reasons You Need Automated Invoice Processing
Automation keeps getting better, especially when it comes to tedious, time-consuming invoicing. Learn the benefits of automated invoice processing today!
Around 80 percent of business leaders believe automation could save three hours every day. That’s a total of 780 hours a year.
Automation has been growing in the past few years, and it’s helping businesses do more than than ever before. By partnering with the right provider, you can automate a wide range of processes.
One popular target for automation is invoicing. The accounts payable process can be time-intensive and costly. Automation could change that story.
Automated invoice processing has many benefits for your business. Here are a few of the reasons you need to adopt it for your organization.
1. Automated Invoice Processing Saves Time
One of the major advantages of automating almost any business process is that it will save you time. It’s the same story with invoice processing in accounts payable.
Processing invoices manually can take around 20 to 21 days. Using an automated process, you can cut that time down to three or four days. The time-saving power of automation is clear.
Automation guarantees invoices will be processed much faster. You’ll also be able to reduce the amount of time your team spends working on invoices in a given day.
2. Time Savings Equal Savings on the Bottom Line
Time isn’t the only thing you’ll save when you switch to automated invoicing. As the old saying goes, time is money. If you’re saving time, you’ll also be saving money.
The reduction in the time your team spends on invoicing reduces labor costs. You can also save interest and late fees with automated accounts payable processing. Every bill will be paid on time.
Finally, you can also save on the costs associated with printing invoices. Switching to an automated process can help you go paperless.
3. Reducing the Invoice Error Rate
As you know, human beings are prone to making mistakes. Errors on invoices due to manual processes are relatively common.
This can create a whole host of headaches for your business. It could mean you pay the wrong amount or on the wrong date. Invoicing errors could also mean late payment or even lost invoices.
With automated invoice processing, you can improve accuracy. This leads to less time spent correcting errors, and it can even reduce the number of checks you need to reissue.
4. Increase Employee Productivity
You can increase your employees’ productivity by adopting automation software for invoicing. As we mentioned, you can reduce the amount of time your employees spend on invoicing with automation.
This also means they’ll spend less time per invoice. Your team will be able to process invoices faster than before. This increases their productivity.
Once they’re done with the invoices, they can move on to the next task. Employee productivity contributes to lower overheads and higher revenue. In short, automating invoice processing is a boost for your bottom line.
5. You Can Defer Hiring
As noted above, automated invoice processing can help your staff do more in a shorter amount of time. This has another upside to it. You can defer hiring more hands for the team longer.
Expanding your team is an expensive endeavor. First, you’ll need to calculate all the costs of bringing on new help. Next, you’ll need to spend time seeking the right fit for your company.
Automating your invoice processing can take pressure off hiring. You don’t need to worry about adding personnel to the accounts payable team as soon as possible. Your team can handle increasing volume much more easily.
6. Collecting Data and Getting Better Insights
Big data has been much-talked about in business circles for years now. Automated invoicing processes make it easier to harness the power of big data to power your AP.
Do you want to know who always pays on time, or which customers are always paying late? The information collected by the automated system can reveal new insights.
With them, you can begin to make more informed business decisions. You may be able to determine you buy from one vendor often. It might make sense to negotiate a discount.
You could also try to group payments or invoices together to save on costs. You may also make revisions to your process to make paying your vendors faster and easier.
7. Increase Your Control and Transparency
Once you receive an invoice, do you know what’s happening with it at any given time? Chances are you don’t. With automated software, tracking invoices is a breeze.
This gives you increased control over the invoicing process. You can make decisions about payment reminder notices or follow-ups in your system. The system can also show you how productive your team is, in real-time.
8. Automation Helps You Grow
It should be clear by now that automation can help your business achieve some of your goals. It can also help you as you continue to grow. It can help take some of the “pains” out of the growing pains many organizations experience.
Automation can help you deal with an expanding number of invoices. As your business grows, you’ll need to process more invoices to pay your vendors and suppliers. Automation can help you reduce the need to expand your team.
It can also reduce yours costs, which frees up your capital to invest in other parts of your business. The right investments can fuel growth.
Finally, automated processes mean you can hire with more control. You’ll be able to expand your team slowly and make better hiring decisions.
Reap the Rewards of Automation Now
Now you can see what automated invoice processing can do for your business. From boosting your revenue to paving the way for growth, adopting automated invoicing software is a smart move.
Why wait any longer? By making the switch, you can start reaping the benefits of automation now.
Talk to us about automating your invoicing today. No matter what challenges you face, we can help you discover the right solution for your business.