Once you've decided to move forward with your financial digital transformation plan, you'll need to determine the right software for your specific needs. However, this - selecting the best automated invoice processing software for you - can be a truly daunting task. After all, the current market for automated accounts payable systems is growing by the day and knowing where to start is not always obvious.
There are tools that partly automate, others that fully automate and some that have no automation at all. Some may seamlessly integrate into your current ERP or financial system while others not at all. Some may need tailored deployments to make them work, which takes time, while others will require only basic training. Features, options, billing, plans... The selection is enormous and to a certain extent, endless.
To be able to give some useful guidance on the topic, we asked ourselves why businesses would need to automate their invoice processing in the first place and then compiled a list of the key attributes to take into account to make sure you choose the best automated invoice processing software for your business.
Automated invoice processing - what’s all the fuss about?
The first question is why automate the invoice process at all? Put simply, manual invoice processes are time-consuming, expensive, error-prone and vulnerable to cyberattacks.
The manual process involves creating invoices, sending them to suppliers, reviewing and matching details, following-up in the case of late payments and ultimately approving payments. This entire process eats up a large amount of time for accounting and finance departments, taking anywhere from 22 to 35 days to fully process a single invoice by hand.
In addition, manual-based processes don’t provide a perfect audit trail and it can quickly become confusing as to who created, dealt with, or approved invoices (especially when dealing with multiple suppliers or projects). This kind of record keeping can easily lead to non-compliance issues based on Making Tax Digital (MTD) legislation and regulations.
The saviour in this scenario has undoubtedly been the development of technology such as Artificial Intelligence (AI), Machine Learning (ML) and automation, all working together to decrease the amount of time and problems faced by manual invoice processing. What’s more, switching to automated invoice processing can lead to significant cost savings. Where a paper invoice would typically cost a business around £7 to process on average, a digitalised automated invoice can cost just £2 - with average savings of around 50-75% when compared to manual processing. For businesses processing hundreds or thousands of invoices every month, the savings can quickly add up.
Additional benefits of automated invoice processing can be found in a significant reduction in the chance of human error and fraud (increased accuracy and security), instant access to data (improving management decision-making ability) and for cloud-based SaaS services, there is anytime mobile access via a phone or tablet (so no approval delays).
What makes the best automated invoice processing software?
Now that the benefits of having an automated process are clearer and all of the obstacles resulting from manual processing eliminated, how do you go about choosing an automated invoice processing software supplier? After all, there is a large array of technology available on the market and it's growing by the day. To make an informed decision, it's important to first understand what is accounts payable automation and how it can specifically address your business needs.
To help alleviate the headache of trying to figure it all out, here is a list of important factors to consider when scouring the market for the solution that best fits your specific needs:
1. Requirements
It is important to recognise your business needs before beginning your search for automation software. After all, if you don't understand the existing obstacles or the objectives you need to accomplish, it becomes infinitely more difficult - and potentially costly - to invest in any kind of new technology.
Take the time to speak to stakeholders in the Accounts Payable (AP) process and try to identify both their existing pain points and wish lists. What kind of features do you need to have? Do you deal with transactions in multiple currencies? Do you have existing software which will need integrating? What types of software are your competitors using?
Asking these types of questions will help you to identify provider criteria as well as help employees be more open to new possibilities.
2. Budget
Effective automation software has a rapid return on investment (ROI) however determining a budget for software means knowing the costs that you will need to pay up front as well as any possible future expenses. The ideal platform will be agile, easily conforming to business growth and needs but you should also determine your ideal pricing structure. Would you prefer a tiered pricing structure or per user? Is the contract flexible or fixed? What features are included for free versus at an additional cost?
3. Integration
You should be able to easily identify your software integration requirements. Most platforms know that it's important that a solution fits around the client's business - not the other way around - especially since in today's digital age many companies have and are using some form of existing enterprise software.
A company that wants to stay competitive should adopt complete end-to-end AP automation, but it's important to keep in mind that the chosen solution should be capable of being fully integrated with any existing Enterprise Resource Planning (ERP) or financial system. If not, it could be an expensive and time-consuming process to tailor the solution or replace other systems entirely.
That said, a seamless and painless automated invoice processing integration is no cookie-cutter scenario. The automation platform should have a team of experts, engineers and customer support specialists to help with the entire integration process.
4. Training
Any new tool needs time to get used to, especially one as important as this. Some tools may need specific training in order to get set up, which takes time and may cost extra in the process. Cloud-based tools, however, are typically easier, faster and more efficient when it comes to training your team, meaning staff can start taking advantage of the benefits of automated invoice processing almost immediately.
Its importance to emphasise the ease of user experience, as this will help with digital adoption and employee confidence in the tool. Automation software is often fairly straightforward to use however, a reputable automation provider should have training as part over the overall package offered to their clients.
5. Security
The risk of fraud and theft when dealing with payments will never disappear completely, but it’s important that any new solution does not increase this risk to your business. Automating the invoice process guarantees total security and traceability of daily operations.
With a cloud-based solution, there’s also no need for additional security and data privacy safeguards if employees are working remotely, as most solutions will come with user authentication, role/user-based permissions and readily available audit information.
6. Compliance
Be sure that whatever software you implement helps you to stay in compliance with evolving Making Tax Digital (MTD) and e-invoicing legislation and regulations.
Next steps
With an automated invoice processing solution like Yooz, you can have full confidence that your approval process will run smoothly and your financial data will stay secure. Our platform is also regularly and vigorously tested for new vulnerabilities by external auditors, to prevent any security breach and give you peace of mind. Reach out today for a free demonstration.
Elevate your workflow with Yooz
Step into a world of unparalleled efficiency and innovation with Yooz, the definitive choice for automated invoice processing software. As pioneers in the field, we redefine what it means to streamline your financial operations, offering a solution that surpasses all expectations. With Yooz, the future of invoice processing is now. Experience the power of automation as Yooz effortlessly handles 80% of invoices without the need for extensive setup.
What truly sets Yooz apart is its commitment to accessibility and ease of use. In just one hour, you can integrate Yooz seamlessly into your workflow, eliminating the need for lengthy training sessions or complicated adjustments. From purchase request to payment, Yooz covers every aspect of your P2P process with its comprehensive All-in-One functionality. Born in the Cloud, Yooz offers unparalleled reliability and scalability, earning recognition from prestigious awards and the trust of global financial leaders. Join the ranks of those who demand the best – choose Yooz for your automated invoice processing needs. Transform your workflow and unlock a new era of efficiency and success with the best automated invoice processing software on the market.
