What is digital invoice processing?

• Eliminate manual processes and automate invoice processing
• Improve accuracy and reduce human error
• Optimise cash flow management by leveraging timely payments and discounts
• Provide real-time visibility into financial obligations
• A digital solution integrates seamlessly with existing ERP systems and provides one central place for invoice data, validation and archiving. This creates a solid basis for control and reporting within the accounts payable process.

A digital invoice processing solution offers much more than just time savings. It transforms financial administration and improves control over accounts payable management.

• Cost savings arise as manual processing decreases, reducing operational costs. Employees spend less time on repetitive tasks and more on analysis and decision-making.
• Better accuracy is achieved through automated recognition and verification of data. Think of automatic matching of invoices with orders and receipts.
• Efficient cash flow management is possible thanks to faster approvals, allowing you to take advantage of early payment discounts and better manage liquidity.
• Real-time insight into expenses and liabilities offers strategic value. Dashboards provide an up-to-date overview of invoice status, outstanding amounts and payment deadlines.
• Risk management is made easier by automatic checks, e.g. for double entries or discrepancies between invoice and order.

John adds: "With digital invoice processing, you get a grip on your expenses as well as your business processes. You always have a complete overview and can move faster."

An digital invoice processing solution uses smart technologies such as OCR (Optical Character Recognition), machine learning and AI. These are the key stages within the process:

1. Receiving digital invoices
   Invoices are delivered electronically via email, portal or EDI and automatically captured in the system.
   
   
2. Recognising and matching data
   The software recognises data such as supplier name, invoice number and amounts, and matches them to corresponding purchase orders, contracts or receipts.
   
   
3. Validation and approval
   Information is automatically validated for completeness and correctness. Discrepancies are flagged immediately. The invoice is then digitally forwarded to the appropriate approvers.
   
   
4. Booking and payment
   After approval, invoices are automatically booked into the ERP system and included in the payment run. This prevents manual errors and speeds up the payment process.

An additional benefit is the automatic audit trail. Every step in the process is recorded, contributing to transparency and compliance with regulations such as the CSRD or internal audit requirements.

If you want to switch to invoice automation software, good preparation is essential:

1. Analyse your current processes
   Map out existing workflows and bottlenecks. Look at error rates, lead times and manual operations.
   
   
2. Involve stakeholders
   Collaborate with finance, procurement, IT and compliance. Make sure all stakeholders understand the purpose and benefits.
   
   
3. Choose a flexible solution
   Go for software that integrates easily with your ERP system and is scalable to multiple entities or countries.
   
   
4. Perform a phased implementation
   Start with a pilot project, e.g. for a specific branch or supplier group. Evaluate and then expand in phases.

The future of invoice processing lies in automation. With ongoing developments in invoice automation software, processes are becoming smarter, faster and more accurate. Digital invoice processing ensures a future-proof accounts payable process in which you not only control costs, but also build strategic insight.

By investing in digital invoice processing now, you will immediately benefit from lower costs, fewer errors and better control over your financial processes. Moreover, you give your team space to focus on valuable tasks, such as analysis, risk management and collaboration with suppliers.

Want to discover how ISPnext's digital invoice processing solution can help your organisation? Contact us or request a demo and experience the benefits of automated invoice processing for yourself.