In this article, we will share our 8 step process on how to reduce manual invoice processing and its significance for your business. Simply follow the process below.
.jpeg)
Use our 8 step process to reduce manual invoice processing, minimize errors, and speed up processing times. Simply follow the steps below.
Understand how invoices are currently processed. Identify manual steps and repetitive tasks. Note areas where errors commonly occur.
Example: Review your invoice process and find that steps like data entry, approval, and filing are manual.
Convert paper invoices to digital format. Use scanners or request digital invoices from suppliers. Store them in a centralized digital repository.
Example: Scan 500 paper invoices from January and store them in a cloud-based system. Request suppliers like Biblio Supplies and Iso Corp to send future invoices digitally.
Choose software that suits your needs. Ensure it has features like OCR (Optical Character Recognition) to read invoice details automatically. Integrate it with your existing accounting system.
Example: Select an invoice management software with OCR capabilities and compatibility with QuickBooks. Implement and test the integration to ensure smooth data flow.
Use the software to extract and input invoice data into your system automatically. Reduce human error and save time. Set up templates for different invoice formats.
Example: Configure the software to automatically read and input data from invoices from CBTL Supplies and Zen Corp, saving 10 hours of manual entry per week.
Create workflows to route invoices for approval automatically. Define rules for different invoice types and amounts. Ensure timely approvals without manual intervention.
Example: Set up an automated workflow where invoices under $500 are approved by the finance manager and invoices above $500 require CFO approval. This speeds up the approval process for 70% of invoices.
Ensure your invoice management software syncs with your accounting system. Automate the transfer of invoice data for seamless financial reporting and auditing.
Example: Configure the software to sync with QuickBooks every night at midnight, ensuring that all invoice data is up-to-date for daily financial reporting.
Provide training for employees on the new system. Ensure they understand how to use the software and follow the new automated workflows. Address any questions or concerns.
Example: Conduct a training session for the finance team, demonstrating how to use the software and the new approval workflows, ensuring all team members are confident with the new process.
Regularly review the process. Gather feedback from staff. Identify areas for further automation and improvement. Adjust workflows as needed to maintain efficiency.
Example: Hold quarterly review meetings to discuss the invoice process with the finance team. Implement feedback to automate additional steps, reducing processing time by another 15%.
Tech Innovators Inc. aims to cut down on the time spent on manual data entry, approval, and filing for their invoicing process. Here’s how they implemented our simple 8 step process:
Review the current invoice processing methods to identify manual steps and repetitive tasks. Focus on areas prone to errors, such as data entry, approval, and filing, to streamline and improve efficiency.
Convert all paper invoices to digital format using Fujitsu ScanSnap iX1600 scanners and request digital invoices from suppliers. Store these digital invoices in Adobe Document Cloud for easy access and management.
Choose an invoice management software like SAP Concur with OCR capabilities that integrates seamlessly with your accounting system. Ensure the software can automatically read and process invoice details from various suppliers.
Configure SAP Concur to automatically extract and input invoice data into your system. This reduces human error and significantly saves time on manual data entry tasks.
Set up automatic workflows in SAP Concur to route invoices for approval based on predefined rules. Define approval hierarchies based on invoice amounts to speed up the process and ensure efficient handling.
Ensure SAP Concur synchronizes with your accounting system, such as QuickBooks, for seamless data transfer. Regular syncing keeps invoice data up-to-date for accurate financial reporting and auditing.
Provide comprehensive training on the new invoice processing system and workflows using manuals and support resources. Ensure employees understand how to use the software and follow the new procedures effectively.
Regularly review the automated invoice processing system and gather feedback from staff. Continuously identify and implement further automation opportunities to improve efficiency and reduce processing time.
.jpeg)
Here are some of the most common benefits of minimizing manual invoice processing:
Automating invoice processing speeds up the entire workflow by reducing the time spent on data entry and manual handling. This allows staff to focus on higher-value tasks, ultimately improving overall productivity.
Manual processing is prone to human errors, such as data entry mistakes or misplacing invoices. Automation ensures greater accuracy and consistency, which minimizes errors and the need for corrections.
By reducing the labor-intensive aspects of invoice processing, businesses can save on operational costs related to staffing and resources. This leads to lower processing costs per invoice.
Automated systems provide better tracking and faster processing of invoices, enabling quicker approvals and payments. This can improve cash flow management and strengthen supplier relationships.
Automation provides better control over invoice handling and storage, reducing the risk of data breaches or loss. It ensures that sensitive financial information is securely managed.
Automated invoice processing can help ensure compliance with regulatory requirements by maintaining accurate records and providing easy access to audit trails. This reduces the risk of non-compliance penalties.
We hope that you now have a better understanding of our 8-step process for reducing manual invoice processing.