Strategies To Increase Efficiency In The Invoice Process
Handling invoices plays a crucial role for your business in having the proper accounting and cash flow. In case your scanned invoice document is lost, the digital version can be very helpful. Some invoices are easily approved whereas others are delayed due to problems in the invoice approval flow.
The main problem with an ineffective invoice approval procedure is the hidden costs incurred with numerous manual steps. This leads to a longer processing cycle, higher labor costs, and irregularities in cash flow. Errors can happen during manual data entry or while preparing the physical document.
These simple strategies can save you from overpaying and help increase the efficiency in your invoicing process:
- Automate Invoice Matching, Receipts, and Orders
Manual matching is time-consuming but invoice automation can speed up the process considerably. When invoices are matched against the correct order or receipt, they are sent for approval to the accounts team within your company. An automated invoice system can solve all problems related to manual invoice matching. It works by storing all the important data in a digital system. The automated invoice matching technology saves time and eliminates the need for human input.
- Give Preferences to Customers
Contact your customers and inquire about how they would ideally like to receive their invoices. Some may prefer faxed invoices, whereas others may prefer emails. Also, ask your customers about what information they need on invoices, such as whether they need a purchase order or need to include an EIN on the invoice. Spending time on this procedure will ensure that all invoices move swiftly in the customer’s payment system.
- Restrict Access to Unauthorized Users
An efficient invoice process ensures that all invoices are safe and secured. Any confidential data or information is only available to those who need it. As a result, it minimizes risk by better enforcement of security policies and a more secure document. Also, all authorized users can use their mobile devices to view and approve their accounts payable documentation so invoices can be processed without delay, even if individuals are not at their workplace.
- Greater Visibility
An automated invoice approval procedure creates a paper trail automatically which will provide greater visibility in each step of the process. All authorized users can check the invoice status at any given time and ask questions regarding the completion of a step.
A good invoice workflow increases efficiency and reduces errors with invoice processing. Today, organizations are utilizing electronic invoice processes to automate the manual procedure of capturing, validating, posting, routing, and storing supplier invoices.