Invoice automation can be a turning point in your business. There are a few different ways to automate your invoices. Here are some things to consider when choosing a way to automate your invoices:
Choose Supply Chain Software
One of the ways to automate your invoices is by using supply chain software. This type of software allows those who deal with invoices to simply automate them. Invoice automation is an inventive way to make matching invoices easier. Here are the steps that supply chain software may go through while digitizing your invoices:
- The supply chain software reads and then digitizes invoices from suppliers. This can be done with PDFs, word processing documents, and others.
- The software evaluates purchase orders (POs) to match each invoice with the correct line. This can be done on invoices with one or more POs. The software does this to reduce errors and fix changes.
- Supply chain software may then begin matching. The way the software matches is completely up to you. When the software matches, it compares line items from orders, invoices, and receipts. Most of this software is created to find issues and notify buyers or suppliers of the issue.
- After this process is finished, invoices can be vouchered easily. Supply chain software is made to find issues and make the payment processes quicker.
Each supply chain software has different ways of going about invoice automation. It is key to find the right supply chain software for proper invoice automation.
Supply Chain Software for Invoice Automation
No two supply chain software options are the same, and not all offer invoice automation. Here are some things to look for in supply chain software for invoice automation:
Line-Level Invoice Matching
Supply chain software should provide you with line-level invoice matching. This can assist in making sure that you are paying your suppliers exactly what you owe. A good supply chain software understands the importance of reducing overpayments or underpayments. Keep an eye out for line-level matching when searching for supply chain software for automating your invoices.
Rules for Matching Created by You
Each business has different invoices, and that means they need different matching rules. With the right software, you can customize your matching rules. You can customize your rules by quantity, supplier, costs, total line, and invoice amount. Supply chain software should be able to match the rules you have created.
Simple for Suppliers
Invoice automation through supply chain software should be simple for suppliers. With this software, they should be able to send invoices via email through whichever file they choose. Whether the file is a PDF or a word document, the suppliers you work with should not need to change the way they send invoices. With supply chain software, you can create an auto-upload email for suppliers to use, or you can drag and drop invoices into the software for automation.
One of the main reasons to automate your invoices is to simplify the process and reduce errors. While supply chain software does this, errors can still seep through. Good invoice automation should make corrections easy. When there is a mismatch, the software should notify you and your supplier. This can allow you to correct the PO and request corrections from the supplier.
Quicker Closing for Everyone
When your invoices are automated, you can close the books more quickly. This can reduce time spent on invoices and let it be a smaller part of the process. Find a supply chain software that allows you to automate invoices so that you can focus on other tasks.
These are just a few of the items to look for when searching for the right supply chain software to automate your invoices.
Benefits of Invoice Automation
Once you regularly utilize invoice automation with supply chain software that works for your specific needs, you will experience many benefits for your company and your bottom line.
Eliminate Delays and Avoid Late Fees
Your finance and accounting departments have a lot of work to do. Creating and sending invoices manually takes up a lot of time and leaves room for human error. Invoice automation avoids delays and eliminates late fees. When a real person creates an invoice, they must go through many steps. Computer software can go through the required steps much faster while scanning for errors simultaneously.
Find the Right Information Quickly
If you are keeping paper records, it can take a long time to find the right paperwork in different filing cabinets and the right information on each piece of paper. A supply chain software can find the necessary information on paperwork much faster and then take the next steps without delay. The software should also allow you to see all of the paperwork you need digitally.
Improve Vendor Relationships
Vendors do not want to work with businesses that take too long to pay them. They also do not want to spend extra time working out errors caused on your end. If a vendor finds working with you to be difficult, they may stop offering you their services. When you use invoice automation, vendors and other businesses you work with will appreciate the speed at which you send payments and the lack of errors. This allows you and vendors to keep records straight and organized.
Foster Old and New Business Relationships
Using invoice automation means your company is using up-to-date technology and software. Keeping up with modern technology helps you retain old relationships and gain new relationships with new companies already utilizing automation.
Automate Your Invoice the Right Way
Supply chain software can be a great choice when it comes to automating your invoices. When shopping for this software, it is key to know that it can do more than just automate your invoices. Supply chain software can also consolidate purchase orders, request quotes, and streamline supply chain performances. Automating your invoices can reduce costs and increase the speed of business. To find out more about invoice automation through supply chain software, begin your research today.