This term describes the process followed by your company’s accounts payable team to manage supplier invoices. It begins when you receive an invoice and is completed when the payment has been made and noted in a general ledger. They can be delivered in various forms such as PDF, paper invoices or digitally. But, for this to happen, the invoice needs to be either manually entered or scanned into the accounting software. Once completed, the amounts in the invoices need to be coded by proper account, project or cost centre. Next, the invoice has to be sent to the budget owner or person responsible for overall review and approval. This multi-step approval system takes time, but the process can be automated for faster, more efficient processing.
Invoice management is largely digital, but not all companies prioritize automation. What they don’t realize is that this digital process still relies on time-consuming manual labour, with invoices extracting payments and data digitally. With invoice automation, you save time in the long run.
1. To Eliminate and Reduce Human Error
With technological advances, there is no reason to completely rely on spreadsheets and email to handle your invoicing. This method works, but the data needs to be entered manually in a general ledger. This increases the chances of human error. An automated system eliminates worry.
2. To Avoid Late Fees
Regardless of how long you’ve been in business or your company’s size, human error eventually leads to invoices being forgotten or misplaced. This can result in vendors charging late fees for missed payments, and the larger the sum of the missed payment, the greater the late fee. This can be detrimental to your company’s cash flow.
With automated invoice processing, you eliminate the risk of missed payments and make sure they are all made on time, which saves you money in the long run.
A streamlined invoice processing function is important to businesses. Errors and omissions in invoices can result in reconciliation discrepancy and customer dissatisfaction. Businesses are unable to prioritize their focus on core values due to the excessive time and resources consumed in completing invoice processing. By outsourcing this process businesses can now concentrate on business growth.
Virtuous Bookkeeping has provided customized invoice management solutions that include automatic handling and processing of invoices to various companies across Canada. Our value added tasks include:
It can be difficult to maintain an optimal cash flow without properly controlling your invoice process. This can result in outstanding liabilities and hamper proper forecasting which makes it difficult to ensure efficiency unless there is a way to analyze the entire process properly.
Generally, processing invoices manually increases the chance of errors and takes up time and resources. Due to these inefficiencies, processing invoices manually can be costly.
Auditing and retrieving invoice data is necessary to ensure it has been properly captured. The data should be archived securely which requires bulky documentation in order to mitigate fraud and meet regulatory demands.
At Virtuous Bookkeeping, our invoice processing services fully automate your invoice receipt, approval workflow and validation to ensure you process invoices twice as fast. From archiving to invoice scanning, we quickly and efficiently process all invoices. Any errors are flagged and invoices are linked to their delivery notes and purchase orders before being authorized.