The conventional approach to managing invoice documents begins when the accounting department receives an invoice from a supplier. At this stage, the invoice is cross-checked and authorized. In cases where the invoice amount is significant, additional approval may be required.

Next, the invoice needs to be entered into the system and marked for payment before the actual payment is made. Depending on the company’s procedures, the manual invoicing process can involve up to 15 different steps, resulting in a considerable amount of time being consumed, especially when dealing with multiple invoices.

On the other hand, automated invoicing streamlines the process. Upon receiving an invoice, it is scanned and integrated into the digital accounting system. This method of data capture, also known as invoice capture, eliminates the need for extensive manual data entry, saving hours of effort. The invoice processing software then converts the captured data into a document that can be searched for specific text. The system can extract and map relevant information from the invoice, such as the supplier’s name, purchase amount, quantity, and other details. This data is registered in the automated management system, ensuring that the fields are accurately captured and recorded in the ERP system. Subsequently, the invoices are directed to the appropriate individuals for review and approval.

Whenever numbers come into play, a single digit being added or omitted can have a substantial impact. Manually inputting data can give rise to errors in dates, incorrect account numbers, inaccurate purchase order numbers, and wrongly billed items. These painstaking and labor-intensive processes can also lead to duplicate entries and result in double payments, incurring losses for the company.