Automate invoice processing to save time, reduce errors, and improve cash flow. Discover the benefits and features of Summit's Vendor Invoice Management system.
Businesses across Singapore are increasingly automating repetitive, laborious tasks, including their invoice processing systems.
Automating AI-driven systems that integrate into existing software packages can make the difference between a clear, well-maintained cash flow and missing or late payments.
What Is an Invoice Processing System?
Invoice processing systems are software that manages vendor invoices from receipt to payment. The accounts payable department uploads the invoice through email, PDF, or an electronic invoicing system before the details are captured for processing.
The business must validate the captured data to ensure accuracy, checking it against purchase orders and delivery notes. The invoice should also contain a valid invoicing number with the supplier's information and the correct amount to be paid.
After validation, the business approves it for one or several payments and schedules the invoice for payment based on its terms. The invoice is then recorded and archived for auditing and financial reporting purposes.
Manual vs. Automated Invoice Processing
Invoices have traditionally been processed manually on paper spreadsheets. Manual processing is a time-consuming, repetitive task that prevents your team from working on income-generating or high-impact strategic work.
Data entry can be monotonous, leading to manual errors affecting decision-making and financial forecasting. Paper documents can also be easily misplaced, wasting time and resources as employees try to locate and reproduce them or mistakenly duplicate existing invoices. Knowing which bills need attention and identifying mistakes can be incredibly challenging across multiple office locations, especially if your team works hybrid shifts.
Automated processing greatly speeds up the process and improves operational efficiency. Vendor invoice management systems minimise human error, as AI captures and processes invoice data without requiring manual intervention. Automation also speeds up the process, allowing you to scale your payables without wasting man-hours.
With more reliable financial records, your business will benefit from real-time reporting, which provides a bird's-eye view of cash flow. Up-to-the-minute data allows for more accurate decision-making, improved compliance checks, and fraud detection. An automated system lowers the chance of violating regulatory requirements and internal company policies.
Key Features of an Effective Invoice Processing System
If you're considering upgrading to a new invoice processing system, there are several features to look out for. OCR, or optical character recognition scanning, is a technology that turns the text of scanned invoices into a digital format. OCR is crucial for companies that receive paper invoices, allowing them to search for invoices by typing keywords or dates.
Streamlined workflow approvals will reduce delays and allow your accounts payable team to run invoices by management regardless of location, eliminating delays. The processing system must be customisable to ensure invoices are reviewed and approved following company policy.
Invoice processing systems that instantly generate real-time accounts payable reports will reveal insights into your spending patterns and performance metrics. Your finance department can use this data to check KPIs at a glance without manually inputting data to measure performance.
Vendor management is a big part of invoice processing. Repeated slow payments due to manual inefficiencies can make vendors less willing to do business with you. Switching to an automated system with reminders speeds up the payment process. The supply chain will benefit from the lack of interruptions as goods and services flow into your business as expected. Thanks to consistent, timely payments, you may receive discounts.
The most crucial feature of invoice processing systems is their integration capabilities. They must integrate into your accounting software and ERP systems, like Xero, for smooth data flow. Relying on multiple, incompatible accounting programs will cause unnecessary headaches for finance teams.
How to Implement an Invoice Processing System
If you want to upgrade your invoice processing, schedule several staff training sessions to get them up to speed with the new system. Ongoing support is crucial to prevent mistakes, get everyone accustomed to your new approach to accounts payable, and minimise disruption.
The technology investment may be substantial, so choose a system with strong integration capabilities to reap long-term savings. Avoid cancelling subscriptions to switch to new ERP systems and accounting tools when possible.
Switch to Summit Vendor Invoice Management
Summit's Vendor Invoice Management utilises cutting-edge automation to speed up your processing by up to 90%. It's fully compatible with Xero, Oracle Netsuite, and Quickbooks, among other leading software.
Summit completely secures your financial data. Our software is ISO27001 certified and features state-of-the-art encryption and access controls. If you'd like to learn more from our expert team about what Summit can do for your business, don't hesitate to get in touch.
