Invoices and bills are the most critical aspect of any business, but sadly they suck away a lot of time, money, and resources. Such a hurdle, when topped up with no scope for even the minutest error, results in making invoice processing an even mammoth task. And, like always, automation comes as a hero here, saving companies from this extensive stress and easing out their daily chores.
RPA services for invoicing can help businesses expedite their workflow, remove human data entry, handle billing documents more conveniently, decrease errors, increase security, and match prices in a jiffy. Traditional invoicing processes are usually inefficient and error-prone. Companies that completely rely on paper methods and manual data entry risk falling behind in today’s fast-paced business environment. Fortunately, switching to invoice automation is simple. Even better, it provides an immediate return on investment.
But, to ace this task, let’s start from the basics to break down the journey for us.
What is the definition of invoice automation?
An invoicing process has two sides to it. Accounts Receivable (AR) prepares invoices for receiving purchase orders and sends them out to clients, while Accounts Payable (AP) processes all incoming invoices (as PDFs and scanned physical copies). Employees in the accounts payable department must read all of the data from each invoice, manually enter it into their system, and match it to a purchase order due to a lack of process automation. Creating each invoice, connecting it with a purchase order, emailing it to the customer, and following up for payment are all manual AR operations.
Invoice Processing Automation With RPA
Take a close look at the software bot to have a better understanding of RPA: This isn’t an actual robot but rather a computer application that uses user interfaces to operate current systems, almost like a human worker. Robotic Process Automation(RPA) is, therefore, faster and less expensive to implement than hard-coded software integrations, and it has a tiny IT footprint because it does not require APIs or programming.
An RPA bot will typically follow these steps to process an invoice:
- Look for invoices. Invoices arrive in a variety of ways. The initial stage in automating invoice processing is to teach the RPA bot how to retrieve invoices from various sources, such as a specialized vendor portal, email accounts, Electronic Data Interchange (EDI), or all of the above.
- Extract information that is relevant. The RPA bot reads an invoice once it has been identified, arranging the data so that it may be reliably copied into other applications and systems (like an ERP or accounting software). Intelligent Document Processing (IDP), are all parts of advanced cognitive capabilities that allow bots to detect and sort key data independent of invoice format—they are frequently used in data recognition.
- Purchase orders and other documents should be matched to invoices. Line items in invoices and related AP documents, such as purchase orders or goods receipts, are compared by bots. They double-check the information on both ends and can even notify vendors if there are any discrepancies.
- Make a request for approval. Bots deliver messages when payment deadlines approach and route invoices to the relevant manager for approval. They can even process payments after they’ve been approved (although you may choose to leave this step in human hands). They can even execute the entire process without requesting approvals for normal payments.
- Payments are entered into ERPs. RPA bots seamlessly transmit payments to your ERP after the invoice is accepted and paid, ensuring accurate data and providing a thorough audit log at every stage.
Benefits of Using RPA in Invoice Processing
RPA use cases can truly be a lifesaver in normal manual tasks like invoice processing automation. The majority of company decisions are influenced by money in some way. Furthermore, automating your more mundane procedures is an excellent method to save money on personnel and costly data inaccuracies.
- Paper expenditures are no longer an issue: There is no need to gather paper or store it. There will be no further archiving of old records while looking for historical records can be difficult.
- Increased Accuracy: Invoices are cross-matched to POs and shipping papers, which improves accuracy. The material is always up to date, and new information is uploaded automatically. Human error is decreased insignificantly without necessitating data entry across systems.
- Exceptional Productivity: Automation aids not only in accounting but also in management by micromanaging all invoicing chores and managing high-level processes that support corporate goals.
- All-time Availability: Robotic Process Automation(RPA) ensures that the service is available 24 hours a day, seven days a week, 365 days a year. Business companies can now supply enhanced services, gain a competitive advantage, and actively scale their operations by utilizing RPA.
- Reduce Fraud Risk: As invoice and check exposure is decreased with built-in verification, the risk of fraud is greatly reduced.
- Compliance: RPA services can be programmed to confront all compliance rules, as well as audit trails. Providing access to completely maintained logs, with each step of a specific process being recorded for historical audits.
- Return on Investment: Companies who implement RPA services should expect to obtain a complete return on their investment.
As per experts, there is a possibility of a 200 percent raise after implementing automation, issuing 90 invoices per day instead of the initial 30. The company is even able to lower its per-invoice cost from $9.06 to just $1.11 thanks to invoice automation (87 percent cost reduction).
The company’s time savings are perhaps the most significant gain. The organization reduced human time spent by 90% by transitioning from traditional invoicing to automated invoicing.
Traditional invoicing processes are inefficient and error-prone. Companies that rely on archaic paper methods and manual data entry risk falling behind in today’s fast-paced business environment. Fortunately, switching to invoice automation is simple. Even better, it provides an immediate return on investment.
While RPA is an important part of the end-to-end business process automation, BPM and AI are also required if invoice processing automation is to be entirely utilized. This might completely transform your AP department, with numerous advantages ranging from decreased costs to better regulatory compliance.
So, did this spike up your interest in investing in an invoice management system? Hit us up for a free demo: CONTACT US