How to Automate Invoice Processing with Software Many businesses still rely on manual methods to handle their invoice processing, even though technology has made it possible to automate this task. Manual invoice processing is time-consuming, error-prone, and vulnerable to fraud. According to a recent report, 86% of SMEs still process invoices manually, and it takes them an average of 25 days to complete a single invoice. This is a huge waste of resources and efficiency. Why not use invoice scanning software to automate the extraction and processing of data from invoices?
Invoice scanning software uses Optical Character Recognition and AI to scan and read invoices, and extract the relevant information, such as:
•Merchant name and address
• Invoice number and date
• Purchase order numbers and delivery details
• Line items, including description, quantity, and price
• Payment methods and terms
Invoice scanning software can significantly improve the speed and accuracy of invoice processing, as well as prevent invoice fraud. It can also integrate with other software systems to streamline the workflow and reduce manual intervention. But how do you choose the best invoice-scanning software for your business? There are many factors to consider when evaluating different options. In this blog, we will explain what invoice scanning software, the criteria for selecting an invoice scanning software that suits your needs, and we will understand the best invoice scanning software in 2023.
Let’s dive in!
What is Invoice Scanning Software?
Invoice scanning software is a software solution that scans, reads, and extracts data from invoices using Optical Character Recognition and AI. It automates the task of extracting and processing information from invoices, which otherwise would require manual input and verification. By using invoice scanning software, you can save time, money, and effort, as well as improve the quality and security of your invoice processing. Invoice scanning software can extract various types of information from invoices, such as:
• Merchant name and address: This is the name and address of the seller or service provider who issued the invoice.
• Invoice number and date: This is the unique identifier and date of the invoice, which are used for tracking and auditing purposes.
• Purchase order numbers and delivery details: These are the reference numbers and details of the order and delivery of the goods or services purchased.
• Line items, including description, quantity, and price: These are the details of each item or service purchased, including its description, quantity, unit price, and total price.
• Payment methods and terms: These are the ways and conditions of paying for the invoice, such as cash, credit card, bank transfer, etc. Invoice scanning software can scan invoices in various formats, such as paper, PDF, email attachments, etc.
It can also handle different types of invoices, such as sales invoices, purchase invoices, tax invoices, etc. It can also recognize different languages, currencies, and tax rates. Invoice scanning software can also integrate with other software systems, such as accounting software, ERP software, CRM software, etc., to automate the workflow and data exchange between different departments and functions.
For example, it can automatically update the accounts payable and receivable records in the accounting software after extracting the data from the invoices. It can also send notifications and reminders to the relevant parties for approval or payment of the invoices. By using invoice scanning software, you can benefit from:
• Faster invoice processing: Invoice scanning software can scan and extract data from invoices in seconds or minutes, compared to hours or days for manual processing.
• Higher accuracy: Invoice scanning software can eliminate human errors that may occur during manual data entry or verification. It can also detect any discrepancies or anomalies in the invoices that may indicate fraud or errors.
• Lower costs: Invoice scanning software can reduce the labor costs associated with manual invoice processing. It can also reduce the paper costs by digitizing the invoices.
• Better compliance: Invoice scanning software can ensure that all invoices are processed according to the relevant rules and regulations. It can also generate reports and audits for compliance purposes. There are many things to consider when choosing invoice-scanning software for your business.
So let’s look at some of the most important criteria that you should keep in mind when evaluating different options. How to Choose an Invoice Scanning Software There are many invoice scanning software solutions available in the market today. But not all of them are created equal. Some may offer more features or better performance than others. Some may be more suitable for your specific needs or preferences than others. So how do you decide which one is best for you? Here are some of the key factors that you should consider when choosing invoice-scanning software:
• Accuracy: The most important factor is how accurate the invoice scanning software is in extracting data from invoices. You want a solution that can read and scan invoices without any errors or misspellings. You also want a solution that can handle different types of invoices with different formats, languages, currencies, and tax rates. You can test the accuracy of the invoice scanning software by scanning some sample invoices and comparing the results with the original data.
• Speed: Another important factor is how fast the invoice scanning software is in scanning and extracting data from invoices. You want a solution that can process invoices in seconds or minutes, not hours or days. You also want a solution that can handle a large volume of invoices without slowing down or crashing. You can test the speed of the invoice scanning software by scanning some sample invoices and measuring the time it takes to complete the task.
• Compatibility: Another important factor is how compatible the invoice scanning software is with other software systems that you use in your business. You want a solution that can integrate seamlessly with your accounting software, ERP software, CRM software, etc., to automate the workflow and data exchange between different departments and functions. You also want a solution that can support different file formats, such as paper, PDF, email attachments, etc., to scan invoices from different sources. You can test the compatibility of the invoice scanning software by checking its specifications and features, and by trying its integration with your existing software systems.
• Ease of use: Another important factor is how easy the invoice scanning software is to use and operate. You want a solution that has a clear and intuitive user interface, that guides you through the steps of scanning and extracting data from invoices. You also want a solution that has a simple and flexible configuration, that allows you to customize the settings and preferences according to your needs. You can test the ease of use of the invoice scanning software by trying its demo version or free trial, and by reading its user reviews and feedback.
• Customer support: Another important factor is how reliable and responsive the customer support of the invoice scanning software is. You want a solution that has a dedicated and knowledgeable customer service team, that can help you with any issues or questions that you may have regarding the invoice scanning software.
You also want a solution that has comprehensive and updated documentation, that provides you with all the information and instructions that you need to use the invoice scanning software effectively. You can test the customer support of the invoice scanning software by contacting its customer service team and by reading its documentation. Now that you know what to look for in invoice scanning software.
But how do you know which invoice scanning software is most suitable for your company? It is totally on your requirement.
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