55 billion invoices are already being sent out worldwide in paperless form as per the current Billentis Report. But, that’s just 10% of invoices from the total. For processing purposes, the remaining 90% is a mystery whether to do manual entry – or digital scanning?
All of this incurs a considerable additional expense for the company and results in errors. Don’t forget: Scanning these vendor invoices can be error-prone, too. The vendor invoice to be digitized may be difficult to read. For example, information may be incorrectly attributed. And even the most perfectly scanned vendor invoice is useless if the original was faulty or incomplete.
But is it really that hopeless?
In this article, we’ll look at three challenges with IT vendor invoices that can seriously damage your company if left unchecked. Then we’ll dig into how you can implement proper invoice automation to keep these issues from sinking your company.
Challenges and Vendor Invoice Management Software
Time-consuming and error-prone manual vendor invoice data entry and matching of POs, GRNs and invoice data
Invoice data entry errors are among the biggest problems plaguing invoice processes that are yet to be automated. Manual invoice data entry is time-consuming. Even a simple mix-up can result in costly errors for your company. And when you are talking about money that’s owed to your business, there isn’t room for sloppy work.
Configurable Invoice Processing Engine- Detects various parts of vendor invoice through regular expression, machine learning extraction models, and unique parsing strategies, in other words extracting structured field-level invoice data elements from image or document
Tracking of vendor invoice information stored in different data formats from thousands of IT vendors
It’s hard to find records of past vendor invoice processing if you’re filing your information manually. Also trying to organize your vendor invoice records manually is great if you’re a perfectionist with too much time on your hands. But it’s just too much to keep up with manual filing and paper storage takes up huge amounts of space you could put to better use.
Smart Vendor Invoice Data Reader- Identifies, categorizes, ingests data required for account payable workflow from any vendor invoice formats (PDF, EDI, XML, paper, etc.) covering PO and non-PO invoices captured via scanner, e-invoice, or mobile app.
Unclear vendor invoice status due to lack of transparency and slow processing due to approval issues
Often the current status during vendor invoice processing is not clear: Has the invoice been received? Has it been validated? Is it correct? When will the invoice be posted, when will it be paid? The status of all these individual stages and the time frame involved often lacks transparency – not only for the vendor but for the company too.
As a result, more and more inquiries arise, especially in the case of long processing times. Answering these questions further burdens the accounting department and delays the process.
Invoice Approval Workflows- Eliminate manual validations and inefficient follow-up calls or long emails. Execute on-time payments on ServiceNow powered flexible workflow platform with rules-driven conditional approvals, complete audit logs, and alerts.
Clearly, accounts payable managers and AP teams juggle a myriad of problems and pain points due to disorganized vendor invoice processes and outdated systems. However, the solution for reducing these inefficiencies and discrepancies is by streamlining vendor invoices processes.
Are you feeling these pain points? If so, it’s time to consider automating your vendor invoice process to eliminate them, save time and energy, and begin accelerating more strategic initiatives that fuel your business.