The verification of content, dollar accuracy and invoice formalities involves complex processes that must be performed correctly as well as quickly.
Early payment discounts and rebates can be lost if verification takes an excessive length of time. Delaying invoice payments too long can even result in late payment fees or credit issues with the vendor.
Booking invoices is prone to error since typing in billing information may lead to typing errors or incorrect information. In addition, paper invoices must be archived. Copies are also often required for individual clerks and supervisors.
Digitizing invoices allow accounting teams to take advantage of a machine learning system to check invoices and use automated workflows to approve invoices. This speeds up the process considerably. As a result, invoices are paid faster, and early payment discounts or other rebates can be gained. Late fees can also be avoided when invoice verification takes place in digital fashion. With digitization, documents are processed faster and with far less cost.
In addition, there are numerous other benefits of digitizing invoices:
- Rapid and automated invoice processing increases trust with suppliers. This automatically improves your reputation with suppliers since invoices are paid faster and more reliably.
- All process steps are tracked and transparent to supervisors and authorized employees. Automated processes can compensate for employees who are absent due to illness or vacation.
- Doing away with paper copies and paper printouts provides massive cost savings, as well as practical benefits such as reclaiming office space from filing cabinets and unnecessary printers.
- Filing is easier since no paper folders are necessary. Office material is saved, and archiving is easier since it is completely digital. With automation, digital organization happens automatically – you set the rules, and then invoices and other documents are instantly stored in the correct manner.
In general, the problem with paper invoices is that they can be lost or lie on desks for extended periods of time, for example when an employee is out of the office . This does not happen with digital invoice processing since documents are immediately available electronically in the document management system (DMS) and can be used by all authorized employees. This eliminates the effort involved in recovering documents that can no longer be found.
Digital invoice verification increases approval reliability
Invoices are sometimes quickly “waved through” — especially during hectic times when employees are dealing with heavy workloads — due to a lack of time or information that would permit more thorough verification.
In addition, when due dates pass, overworked employees can also potentially approve invoices that should not be authorized for payment.
With digital invoice processing, employees have access to all information as quickly as possible and authorize payments with speed, ease and accuracy. Digital invoice verification improves the reliability of payment approvals since validation is improved. Added to this is the transparency that allows the approver to view a process at any time without first having to request a copy. This drastically reduces the risk of invoices being approved without verification.
Automated digital invoice verification greatly simplifies approvals down to a few mouse clicks. At the same time, the employee's workload is minimized and his or her satisfaction is increased since they can use the right tools to perform their tasks both faster and more effectively.
Information is available at all times
If an accountant, management or staff member has questions about an invoice, the necessary data and information can be retrieved and displayed at any time and, ideally, in any location. This significantly increases the flow of information. The employees responsible can also retrieve information or approve invoices using their smartphone or tablet.
The advantage: you dispense with tiresome searches for information which may not even be available. On the contrary, information is immediately available via the document management system.
Unnecessary costs and risk is removed
A study by International Data Corporation (IDC) describes how employees spend vast amounts of time processing, storing, archiving and searching for paper documents. IDC estimates that a company with 1,000 employees has nearly 213 individuals whose time is spent managing too many paper documents.
The risks and downsides of paper documents are well known and documented. Eliminating paper yields clear benefits:
Imagine no more filing cabinets, fewer printing devices, and shelves of storage reclaimed from paper and toner supplies. Less shipping, less photocopying, less filing and searching. The first advantage is a cleaner, brighter, more spacious office.
Automated workflow makes the right content accessible at the touch of a button whenever and wherever you need it. It takes only seconds to route and share documents across multiple departments and systems.
Reduced business risk
Custom access controls and digital data security make it easier and less expensive to maintain compliance and reduces the likelihood that missing documents will result in fines or lost revenue.
Better customer relationships
Information is only seconds away with a quick search — no more putting people on hold to dig through folders. Deliver the speed and quality of support your customers and vendors deserve.
Using digital workflows instead of paper results in greater transparency, allowing management to monitor business processes in real time for smarter decision making.
Positive environmental impact
If you have a “green” initiative in place, one of the easiest ways to reduce your carbon footprint is to print, ship and store less paper.
Introducing digitization to any part of your business can reduce reliance on tedious, manual tasks and help your organization go paperless.
Audit prep and response is simplified
Audits are much easier with digital invoice processing. Documents in the document management system are available at all times, are archived in a legally secure manner, and can be retrieved at any time in a highly organized manner to support even the deepest audits. This can help avoid fines for missing documents.
See how DocuWare's solution for invoice processing takes care of your invoice processing automation securely and easily: