As a finance controller, you handle numerous invoices each month. In this era where you are expected to be a partner in growth, manual invoice processing is inefficient, error-prone, and distracts you from strategic initiatives. Automating invoice processing, you are able to capture more data & process it for insights with much lesser effort which boosts efficiency, accuracy, and cost savings. For example, Mahindra & Mahindra cut their processing time from ten days to two. Tata Consultancy Services reduced errors by ninety percent. Invoice Processing become smoother, and improved accuracy strengthens supplier relationships. By automating, you not only gain time but also insights to become a partner in growth, enhancing overall productivity.

What is invoice processing?

Effective invoice processing ensures timely payments and accurate financial records, and for managing cash flow. Automating these tasks reduces errors and processing time significantly. For instance, a study reported a 75% reduction in processing time and a 50% decrease in errors with automation. Best-in-class companies experience 3.6 times fewer errors and process invoices 2.8 times faster compared to peers. Accounts payable procedures benefit greatly from streamlined payable invoice handling, fostering better vendor relationships and financial efficiency.

Invoice processing involves several key steps for finance controllers like you:

• Receipt of invoices, whether digital or physical.
• Validation to ensure checks and Controls in purchase details.
• Discrepancy Management to resolve conflicts.
• Approval based on Delegation of Authority. 
• Payment processing based on agreed terms.
• Record keeping for audits and financial accuracy.

Benefits of invoice processing

Here are the growth opportunities your business is missing out on, if you haven’t already automated the invoice processing :-

1. Reduction in Efforts: 

Automating invoice processing reduces manual efforts significantly. By adopting automation, you can streamline accounts payable procedures. Companies leveraging automation report up to 58% less time spent on processing invoices. For instance, Medtronic achieved 80% touchless processing, freeing resources for strategic tasks. 

Automation slashes AP tasks by 60%, cutting costs and enhancing accuracy. Xerox exemplifies this with an 80% reduction in manual data entry, speeding up processing by five times. Such advancements minimize errors and optimize invoice handling efficiently. By embracing invoice processing automation, your team can focus on higher-value activities, driving operational efficiency.

2. Cost Reduction with Non-Skilled Resources:

Automation in invoice processing also involves automating the accounting tasks. This allows non-skilled resources to handle tasks efficiently earlier done by high cost resources, reducing costs effectively. By automating, you streamline the workflow, making it easier to manage invoices without specialized training. 

For example, a large edtech company reduced their AP headcount by 40% after automating most of their AP processes including Invoice processing, credit card processing, petty cash, employee reimbursement, partner payouts etc. while maintaining high efficiency. Embracing AP automation completely can transform how your finance team operates, enhancing both efficiency and cost-effectiveness.

3. Improved Data Accuracy and Better Decisions

Automating Invoice Processing with DataTwin can transform your operations. By leveraging advanced AI on top of OCR, errors in data capture of payable invoices are minimized. This ensures eliminating duplicates and paying the right vendors at the right time. 

For finance controllers, this means streamlined accounts payable procedures, reducing processing times significantly. Also accurate financial insights are available, so that you can make informed decisions swiftly. Imagine optimizing cash flow and strengthening vendor relationships effortlessly. Accounts Payable & invoice processing becomes efficient, cutting costs and preventing errors. 

Data accuracy isn’t just a benefit; it’s essential for strategic planning. Experience better financial health and operational efficiency with automated AP.

4. Agility and Customization for New Business Models

For CFO’s & finance leaders, automating invoice processing also needs to enable swiftly adapting to evolving business models and effortlessly managing diverse accounts payable procedures. Imagine seamlessly handling complex product portfolios and new customer journeys.

With agility, workflows can be customized, ensuring adaptability to new processes and workflows and enhancing operational efficiency. Also the ability to integrate with other systems to pull or push data automatically will help save time and improve on-time payments significantly. Embrace modern financial operations with tailored solutions that support agility and boost customer satisfaction.

5. Enhanced Control and Faster Growth

Automating invoice processing and all workflows of AP including Credit card processing, spend management etc. empowers finance leaders with precise financial oversight, speeding up accounts payable processes. 

By automating data entry and workflows, errors are minimized, ensuring timely processing. Also enables you to capture more data. With the ability to process this data instantly and offer real-time insights, finance teams can identify issues earlier, course correct faster, leading to optimization of costs and faster growth. 

6. One Platform for All Payables

By automating tasks from data capture to accounting, procurement to payment, DataTwin enhances efficiency and accuracy in managing all payables. Organizations report a 50% reduction in AP processing costs and a 75% decrease in processing time, according to the Institute of Finance and Management (IOFM).

For instance, a leading healthcare provider spent 40% less time on invoices and achieved a 60% improvement in on-time payments after adopting DataTwin. This platform centralizes operations, ensuring efficient and timely accounts payable processing while enhancing financial management capabilities.

How to automate invoice processing?

Step 1: Plan

Planning is vital for automating invoice processing with DataTwin. Create a detailed roadmap, starting with an Annual Operation Plan. Break it down into Monthly Plans to set achievable targets. Weekly Plans assign tasks and responsibilities to the team. Daily Targets ensure you stay on track by setting clear daily goals. For example, you might aim to automate 80% of accounts payable processing by year-end. DataTwin’s analytics help model scenarios and optimize the automation roadmap for efficient growth.

Step 2: Execute

DataTwin streamlines the invoice processing lifecycle, enhancing efficiency. With over 99% accuracy, DataTwin extracts data from various invoice formats. It matches invoices to purchase orders and goods receipts, ensuring compliance. Extracted data integrates seamlessly into your accounting system, reducing errors. With a 2-way/3-way/4-way sync, payments are executed on time, improving supplier relationships. By automating accounts payable processing, you achieve significant cost savings and efficiency gains. Siemens achieved 50% faster processing times and an 80% reduction in manual effort with DataTwin.

Step 3: Monitor (Audit)

Monitoring is essential in invoice processing to ensure accuracy. With DataTwin, you can automate audits like Freight Audit, PO/GRN/Bill Audit, Direct & Indirect tax audit and Duplicate Invoice Audit. You can track your budget versus actual spend, making accounts payable processing more efficient. One healthcare provider saved $1.2 million using these features, highlighting how automation reduces costs and improves accounts payable procedures. This helps you streamline your finances efficiently.

Step 4: Optimize

Optimize your invoice processing with DataTwin by drawing insights from automated processes. Here’s how it works:

• Analyze processed invoices to spot patterns, trends, and issues.
• Generate actionable insights based on this analysis.
• Use these insights to streamline accounts payable procedures and enhance efficiency.
• Continuously monitor and refine the optimized workflows.

A large retailer reduced invoice processing time by 40% using DataTwin’s insights. Similarly, a global manufacturing firm cut costs by 30% by eliminating manual errors. This ongoing optimization ensures you minimize late payments and errors, achieving a 95%+ straight-through processing rate. As a finance controller, these improvements can transform your accounts payable processing.

Conclusion

Automating invoice processing can greatly benefit finance controllers in India. You will reduce manual errors and speed up workflows, making your accounts payable processing efficient. For example, a leading FMCG company in India cut invoice processing time from 10 days to 2 days. Embracing automation, you can focus on strategic initiatives that drive business growth. For a deeper dive into how digitizing invoice processing can transform your financial operations, check out our comprehensive guide: A Complete Guide to Digitizing Invoice Processing in 2024