Recurring operations are best delegated or automated to save valuable time. Small to mid-range businesses may cope with entering data manually and generating manual invoices in the early stages. However, it may not be sustainable in the long run.
Even though Blockchain and Artificial Intelligence (AI) provide a plausible solution to these issues, the hefty price tag for incorporating these mechanisms works as a deterrent for most entry-level or mid-level companies. The next best alternative is automation. This article briefly looks into the ways to cut back on repetitive labor and shift from traditional methods to automate recurring processes like invoice generation, vendor payouts, and data entry.
Manual Invoices- A Thing of the Past
With the advent of technology, your business will lose out on time and money if you stick to manual repetitive procedures. In the past, it was accepted that the accounting team would spend at least a week verifying and processing invoices. Accounts Payable Automation is a valuable investment that shows returns in 6 to 18 months. And, 86% of surveyed employees confirm the benefits of automation. They help workers perform their tasks efficiently. Several cloud-based platforms already offer automated invoice generation. Even small to mid-range companies can experience their benefits.
Benefits of Invoice Automation
Nearly 48% of businesses take almost 5 days to process invoices. Yet, this tedious, manual process can easily be automated, thus saving your business almost 81% of the processing costs and nearly 73% of valuable hours. In terms of payroll savings, automated recurring invoices save almost one-third of the salary of an employee and one-fifth of the salary of an off-shore employee.
Unless your business has specific customization needs, ready-made cloud software will complete your invoices and notify employees. Automated invoice generation does not just save costs, but it also:
Reduces the time taken by employees in conducting the process manually, resulting in happier workers.
Reduces the risk of fraud, for every automation software comes with its own set of security checks.
Fosters Healthy Relationships
Makes the payments faster. Since valuable time and costs are saved in generating the invoices, the company can utilize the early payment discounts. Prompt payments also go a long way in maintaining a healthy relationship with the vendors.
Remote & Transparent
The digitized process is also remote and traceable, hence making the process more transparent and easy to follow.
Automated Invoicing- The Corner Touchstone
Since generating invoices manually involves dealing with large quantities of data, following a proper template, and processing downloaded invoices, it is believed that automation will help remove the burden of time spent mulling over huge manual data. In an increasingly competitive environment, the only way to stand out is to use the power of advanced technology to streamline recurring processes and accomplish deliverables faster.
The Optical Character Recognition (OCR) feature in most automated invoice generators is responsible for recognizing data, extracting it, and assigning the data in the correct fields. A good automated tool also recognizes the complexities in financial documents and has the intelligence to recognize individual patterns in cases.
Automated Purchase Order (PO) matching allows your business to customize invoices for each vendor. Not to mention, the entire automation process reduces the time taken in issuing, sending, verifying, and approving invoices. The digitized invoice life cycle is secure, traceable, and remote, which is a major boon for online businesses looking to adopt automated procedures.
Risks Associated with Automated Invoicing
With the arrival of the age of automation, one recurring concern that pours from employees is that machines will increase unemployment. But, as Harish Sippy, Chief Founder of Tema India put it, “Automation is cost-cutting by tightening the corners and not cutting them.” Automated invoice generators make the work of accountants and auditors easier.
When looking to automate invoices, another issue that crops up for businesses is the software’s ability to cope with diverse and poorly scanned documents. A company may generate various types of invoices. To combat the problem of diversity of documents, companies like Osfin.ai
offer template-free document processing. They also put your account deliverables and payouts on autopilot and augment your fin-Ops workforce with AI-powered automated document processing.
Osfin.ai- An Automation Platform
We, at Osfin.ai, are committed to automating your financial processes and cutting back costs and save valuable time. Our modern accounting platform reconciles millions of entries in just a few minutes. We possess the capacity to process files in any format and from multiple sources, through our 30+ integrations. The above-mentioned features are a significant asset to accelerate your invoice generation process.