Why Would My Business Need Invoice Capture Software?

The process of walking over to a scanner to manually scan invoices, upload them onto your device, manually insert and validate the data and finally communicate with either the accounting or Enterprise Resource Planning (ERP) system isn’t just old-fashioned; it’s ancient and almost completely obsolete. It’s also incredibly time-consuming, occupies team members who could be focusing on more important tasks and increases the chance of mistakes entering the fold.

However, despite the increasing amount of automated invoice processing software tools available on the market, as well as the ever-evolving requirements of the Making Tax Digital (MTD) initiative, this traditional way of processing is still the typical situation found in many businesses today. Accounts payable (AP) teams are still manually scanning invoices, entering relevant data (VAT numbers, supplier or client information, total price of goods etc) into specific fields on a spreadsheet item by item and then sending it off for approval. With any luck, the information on the invoice matches the original receipt of goods and purchase order number, but even so, it could take days or even weeks to approve the final payment.

Now imagine that you’re having to deal with hundreds or even thousands of invoices coming into the business every month. Under these circumstances, the process of manually scanning, handling and managing invoices becomes a sheer mountain of work, that is constantly repeated day after day, taking up hours of valuable time without guaranteeing either accuracy or security.

In fact, a recent survey of finance leaders in the UK found that one-third (35%) of respondents felt time-consuming processes were the biggest problem related to manual accounts payable tasks, while 17% of companies said they spend more than 100 hours per month processing supplier invoices. Issues such as the manual validation of invoices and a reliance on the use of paper documents (that need to be printed and shared across the business for authorisation) result, not only in delays but also a risk of errors, especially across multi-site organisations. In short, the issues surrounding invoice capture are much bigger than businesses currently think.

What is invoice capture software?

Invoice scanning used to mean simply digitising a paper-based invoice through use of an actual electronic scanner. However, today businesses hardly ever use hardware scanners (usually they don’t even have one at hand) but instead take high-resolution photos or receive documents in some kind of electronic format. Unfortunately, even this progression wasn't enough of a solution to solve the problems resulting from the manual accounts payable practices. What was needed was some type of an automated step in the invoice capture process, one that eliminated the negatives of manual processing by automatically gleaning data from an invoice. One that would speed up processing time while becoming more accurate. This step became invoice capture software.

The use of an invoice capture software solution helps right from first step of the invoice data extraction process: taking information from paper or digital documents. This is typically done by integrating and using smart data extraction technology in the software, which scans documents (PDF, handwritten, etc) and turns the information into digitally readable text that can be used, stored and analysed in a business’ ERP or accounting system. Even better, thanks to the use of Artificial Intelligence (AI) and Machine Learning (ML), invoice capture software is able to "learn" and adapt so that accuracy (and therefore speed) increases the more it is used. No need to outsource the scanned data to an external party and wait days for validation; invoice capture software can do everything in real time. Only when supplier invoices are available in a digital format can businesses truly streamline their invoice processing and save time, money and resources.

The use of invoice capture software may make the entire invoice process sound easy and quick (and to a certain extent, it is a great improvement), but really it’s just an important first step in digitalising the AP department and creating a fully automated, hands-off approach. After all, a fully-automated process ensures that there is no possibility of manual error later in the invoice workflow and means there's no need to outsource the invoice scanning data to an external party and wait days for validation.

The benefits of using an automated invoice capture software solution

While time saving and eliminating error are certainly key features, they are certainly not the only positives to automating the process. There is no question that making the switch to an automated invoice capture software solution offers numerous advantages beyond just speeding up the process. Automating invoice capture offers significant benefits by reducing the possibility of human error, lost documents, late payments and fraud, by providing better reliability, accuracy and security. Let's explore some of these in more detail.

First is time. Automating invoice capture has provided a saving grace for AP teams, decreasing the time taken to manually process invoices while providing better reliability, accuracy and security. For example, according to one report, UK businesses with more than 50 employees process on average around 1,500 invoices each month, taking around 43 hours per month just to manage the invoice approval process. Now compare this with automation, where invoice capture software offers time reductions of up to 30% and processing time is counted in seconds and minutes instead of hours (or days, or more). In addition, remember that as the technology utilises Artificial Intelligence (AI) and Machine Learning (ML), the software is constantly learning and improving the more invoices that it processes.

Second, the use of invoice automation is a cost saver. In fact, the move to an automated invoice capture software solution can also lead to significant cost savings of around 50-75% when compared to manual processing. For example, whereas manually processing a paper invoice would typically cost a business around £7, automation can reduce this to around £2 per invoice processed. For businesses processing hundreds or thousands of invoices every month, the savings can quickly add up and provide a very healthy return on investment (ROI).

Third, in terms of compliance, using an automation solution creates a complete audit trail of invoices, payments and financial documents, which is necessary to keep businesses compliant and secure. This digital trail eliminates any confusion resulting from manual processing, specifically regarding complications due to not being able to quickly work out who created, managed and approved certain invoices (especially when dealing with multiple suppliers, locations and a mixture of paper and digital documents).

Fourth, one of the best benefits for accounts payable departments today is the ability for an invoice capture software solution to automatically "pick up" invoices and start processing them without any manual intervention from staff. There are no delays, and nobody needs to be physically present. For example, when an invoice is received via email, the software automatically sends it into the accounting or ERP system to be scanned, recorded and analysed, which is perfect for teams that work in different locations and time zones from one another.

Finally, the benefit mentioned above, the solution's automatic 'pick up', also helps to improve relationships both inside and outside of the business itself. While CFOs and finance leaders gain accurate real-time data to use for better business forecasting, suppliers and vendors also benefit from a more streamlined process with faster invoice approvals and less risk of late payments. What's more, the use of invoice capture software significantly increases the productivity of accounts payable staff, with repetitive work replaced by strategic, high-value tasks that require critical thinking and a more human touch.

You can find out more about the benefits of invoice capture software here or reach out to speak directly with an automation specialist today.

Revolutionise your AP process with Yooz's invoice capture software

Revolutionise your accounts payable operations with Yooz's automated invoice capture software, designed to enhance efficiency and accuracy in your invoice processing workflows. Utilising advanced AI, machine learning and intelligent document processing software, Yooz automates invoice scanning and data extraction, minimising manual data entry and ensuring accurate data capture. Seamlessly integrate with existing accounting systems and ERP solutions to manage invoices in various formats, including paper and digital. Yooz's user-friendly interface facilitates the entire invoice capture process, allowing you to scan invoices and accurately extract relevant data such as invoice numbers and line items. Experience the best invoice scanning software that transforms your invoice data capture with its automatic invoice recognition and AP automation capabilities. Trusted by leading firms for its innovative invoice scanning solutions, Yooz is your go-to choice for reducing manual processing and enhancing data security in your financial operations. Join the organisations benefiting from Yooz's comprehensive invoice scanning solution and elevate your accounts payable process today.