In today’s technology driven world, the expectations of vendors and customers are high. Strategic innovation and optimization of business processes are required to achieve future success. That’s why companies are faced with increasing pressures to accelerate payment cycles with EDI and invoice automation solutions. Most have already introduced ERP systems to automate their repetitive administrative tasks. Eighty percent are yet to automate their invoice processing.
Removing the need for manual entry is a significant step towards business efficiency. It reduces transactional costs by up to 80% and eliminates costly errors. It also enhances profitability. With faster and more predictable payment cycles, companies can effectively manage their cash flow and make capital available for investment.
Automating the invoice process offers many benefits, however many companies are not able to do so because they weren’t able to send their invoices in standard electronic format to be automatically fed to their ERP systems. An EDI solution offers the ability to do this, as long as companies are willing to invest valuable time and substantial resources. If they want to maintain strong relationships with their partners, they need to significantly change the way they do business.
Benefits of Invoice Automation
Invoice automation solutions can now bridge the unique internal processes of vendors and the need for automation to accelerate payment cycles of companies. They also provide the following benefits:
- Eliminates manual entry. Invoice automation solutions treat email, fax and printed invoices as standard electronic documents. Thus, companies are able to capture invoice data with 100% accuracy. This allows their accounts payable departments to reconcile invoices with original purchase orders promptly.
- Cuts processing time. Using EDI and invoice automation solutions can only take minutes as opposed to manual processing, which takes about a month. Companies do not need to worry about delayed or missed payments, too. The staff can focus their time and energy to more important tasks of building lasting relationships with suppliers.
Pairing EDI with invoice automation solutions seems to be the best solution to many companies’ problems. They eliminate manual processes, reduce operational costs, improve order-to-payment cycles, and help staff reconcile purchase orders quickly. The staff can also focus on more strategic priorities such as supplier relations and spend analysis. Using them can eliminate the efficiencies of human interference, strengthen relations with suppliers and increase their profitability. Click here to learn more about the benefits of e-invoicing.