Collecting invoice approvals is critical for every accounts payable team. The task ensures that vendors are paid accurately and promptly. However, these processes can be very challenging to operate manually, as the AP teams deal with many invoices. Entering, verifying, coding, and manually routing invoices can be time-consuming. This also increases the risk of errors, including incorrect data entry or misrouted invoices, resulting in delayed payments and strained vendor relationships. Hence, automated invoice approval software for accounts payable would be a better option to enhance efficiency and accuracy in the invoice approval process.
How AP automation can fix the invoice approval process
Implementing AP automation can significantly transform the workflow in invoice processing. It streamlines repetitive tasks, accelerates approval cycles, and boosts operational efficiency. Here are some of the features of AP automation that can play a positive role for your organization –
- Automated data capture: AP automation software uses technologies like optical character recognition (OCR) and machine learning algorithms to extract and enter invoice data automatically.. The invoice received is read by OCR technology to extract key information like invoice number, vendor details, date, line items, and amounts. This data is fed into the AP software. This eliminates manual entry, saves time, and reduces the risk of human error. Accurate data capture at the outset leads to faster invoice processing and fewer rejections due to manual errors.
- Streamlined approval workflows: AP automation platforms are designed to create customized and streamlined workflows aligned with the organization’s particular requirements. These workflows ensure that invoices are moving properly through the approval process, which ensures that each is automatically passed to the correct approvers. The software will also ensure that the approvers receive invoices relevant to their role and authority level. This enables a more organized and efficient process of approval. Aside from that, automated reminders and escalation processes also make sure that the pending approvals are addressed without delay. This further enhances the speed and reliability of your organization’s invoice approval process.
- Real-time tracking and notifications: One of the most beneficial features of AP automation software is its ability to provide real-time tracking capabilities for the status of invoices. From the moment an invoice is entered into the system till it is processed fully, stakeholders can track its movement through a centralized dashboard. Automated alerts and notifications are also sent to the respective parties when they need to take required actions, at every stage of the process. This reduces the time they would have needed to search for information or follow up on invoice approvals.
- Automated matching: AP automation software can automatically match invoices with the corresponding purchase orders and delivery receipts. The process ensures that the details on the invoice match the ordered items and the delivered items. Thus, automated software identifies any discrepancies found in this process for further review, including process variations, quantity mismatches, or missing information. Automated matching and validation help to verify the accuracy of details in the invoice before they even reach the approvers. This allows them to focus on more complex tasks that need particular attention, like exceptions or discrepancies, rather than performing routine checks.
- Compliance and policy enforcement: AP automation software has compliance checks embedded into the approval workflow, ensuring every invoice adheres to the company’s policies. Spending limits, approval hierarchies, and other required documentation are some of the compliance areas that an automated software can easily ensure. It can also be updated easily to comply with any changing regulatory requirements of the organization. This ensures ongoing compliance of the invoices entering the system and provides greater flexibility for the organization.
Conclusion
An automated invoice approval software in accounts payable addresses manual invoice processing and approval workflow challenges with automated data entry, monitoring capabilities, and embedded compliance checks. It enhances efficiency, accuracy, and compliance at every stage of the invoice lifecycle.
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