What Is Invoice Management ?
Invoice management is an internal business function linked to accounts payable process of finance department. Accounts Payable team is responsible for managing and processing invoice documents from vendors and suppliers.
Understanding Invoice Management
Also known as invoice processing, invoice management is the method by which companies track and pay supplier invoices. At its most simple, the process involves receiving an invoice from a third party, validating it as legitimate, paying the supplier, and noting the payment in company records.
Smart companies look for ways to cut out two things:
- Manual data entry, which is always time-consuming and can lead to lots of errors
- Double-handling and excess communication. All of those emails to send invoices from place to place are more annoying than most of us realize.
Invoice automation is the solution here. Instead of sending a PDF around the company for validation, the point-of-contact can simply input the data into a solution the moment they receive it.
Benefits of Invoice Management
- Accurate Data Processing
The more invoices you have to process and create, the more chance there is for error. And when everything is done by hand, those chances double. Any typo, repetition, transposition of numbers, or other inaccuracy can easily occur.
Automated invoice management solutions are your gatekeeper from these errors. Both accounts payable and receivable are entirely automated for you, so you don’t have to single-handedly write invoice details down on spreadsheets. This completely eliminates the chance of any duplicate payments, misplacements, or other data-entry errors.
- Faster Invoice Processing
With invoice management solutions you can double the speed at which you process invoices, cut back on accounts payable expenses, and minimize human error. Ultimately, these benefits will lead you to a lowered cost per invoice, improved relationship with suppliers, and hardly any vendor payment issues.
- Quicker Payment Approval
Invoice management solutions can help you avoid any bottlenecks related to invoice approvals.With in-built authority logic, invoicing solutions will automatically allow users with the right authority level to approve invoices. With no time wasted.
- Real-time Insights
Invoicing management solutions have dedicated dashboards you can use to monitor all of your invoice information. This way, you don’t have to chase after papers to know your total payables or which sales invoices are overdue. At the same time, invoice management solutions automatically generate invoice reports, which you can use to track the overall financial health of your business in real-time.
