If you’ve been processing invoices manually, you’re all too aware that juggling a mass of paper and digital files is stressful and time-consuming.
In addition to the lost efficiency, manual invoice processing increases the risk of errors, misplaced documents and late payment penalties. If this scenario sounds familiar, electronic invoicing offers an alternative that’s easy, efficient and secure.
Using a digital document management solution alongside your accounting platform makes it easy to implement electronic invoicing, which unlocks a number of benefits for your accounting processes:
- Improve efficiency for checking and approval processes using digital workflows
- Standardize processing that captures both paper and emailed invoices
- Increase transparency through automatic process documentation
- Maintain compliance with secure archiving for your accounting documents
- Reduce or eliminate manual data entry by sharing data between the document management system and your accounting system
How Electronic Invoice Processing Works
A document management solution replaces your piles of paper invoices with a digital desktop that includes everything you need for filing, retrieving and processing invoices and other accounting documents. This interface allows you to organize and file invoices much faster than you could with manual processes.
To see electronic invoice processing in action watch this short video demonstration of DocuWares system.
First, all invoices and supporting documents are captured, indexed and archived in a central repository for easy retrieval. Paper invoices are scanned directly into the document management system, and it’s easy to import email invoices from your inbox with one click of the mouse.
When a new invoice is captured and indexed, the invoice shows up in your document management desktop and launches a digital workflow that streamlines distribution, review and approval.
After you assign the invoice to the appropriate cost center, the system sends an email notification to the cost center manager, and includes a link to access the invoice for review and approval. Upon opening the link, the approver sees all of the invoices ready for review together with all of the relevant supporting documents. Since the document management system uses a web-based interface that allows for online invoicing, it’s easy for an approver to review invoices from any mobile device, which keeps the process flowing.
Upon approval, the invoice returns to the accounting department as a posting task. The accountant then switches to the accounting system and is able to import nearly all of the information needed for posting from the document management system, which reduces or eliminates manual data entry. The invoice also carries an automatic digital stamp that contains a precise record of all steps taken in the process.
In the end, electronic invoicing increases the speed and efficiency of your accounting processes so that invoices are paid without delay. Instead of running up late fees, you’re now able to capture any early payment discounts offered by vendors and suppliers. It also increases transparency and ensures that important accounting documents don’t go missing, which means you’re ready when it’s time for tax preparation or external audits.
Are cumbersome accounting processes holding you back? To find out how to optimize performance with electronic invoicing, download our free guide, 9 Ways To Reduce Costs In Your Accounting Processes (Up To 78%) With Enterprise Content Management.