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What is invoice automation and how it works?



It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." Charles Darwin




The business world is exceptionally dynamic and persistently evolving. The procurement segment is no different, and we understand how the teams working with the arrangements related to it are always on their toes.

Not to mention it is becoming extremely imperative for businesses to switch to modern methods and technologies in this cutthroat competition. Harsh truth, but a business that is stuck in traditional ways, won't make it for even for the coming five years, let alone cruise for a long-time success.


There, there, not to forget, we are in a tech advanced world. So, in this blog, we will talk about the smart and seamless invoice automation solutions which can undoubtedly redefine your procurement process. Indeed, AP Automation can be the perfect entry point for your business's digital transformation if you haven't yet made the move.

What is invoice automation?

There is a lot of buzz in the business world about invoice automation and how the technology is eliminating the roadblocks which are otherwise typical to the traditional methods. As self-explanatory as it is, under this process, invoicing is automated partially or completely, using invoice automation software.


Invoice automation is an advanced electronic process where the key data is extracted from all the invoices and is then passed into the ERP or AP systems to speed up the payments.

You surely are well acquainted with your company's invoice processing cycle, which includes receiving invoices from suppliers, complying with invoices as per the business standards, adding details in the ledger account, cross-checking to avoid errors; sending for approval; following up, and finally processing the payments.


Now that indeed is a long and tedious process, and achieving the end result with complete accuracy can be nothing but a Herculean task. However, with the advent of electronic invoicing and automation, the process has simplified, and your team can churn out some more productive time than just being caught up in countless paper documents, manual data inputs and retrieval, snail mails, and thousands of follow up calls.

How does invoice automation work?


Invoice automation processing starts with the arrival of the invoice. Then, the invoice processing software scans the invoice data, known as invoice data capture, and feeds it to the accounting system.

Your automated invoicing software then performs pairing and matching of data with the received invoice and purchase order lines. The payment is pushed forward in your ERP system if the lines match. The payment is put on hold otherwise.


Skyscend, for example, offers end-to-end invoice automation where the data is captured using OCR technology, eliminating the manual labour and prone to error methods. Further electronic invoicing and automation with Skyscend is fast-forwarded and streamlined with the seamless to use dashboard and an all-integrated process supporting all your document formats. After the data is captured and processed, the emails are sent to your suppliers.


In simple words, invoice automation:


· Eliminates the outdated manual data entry.

· Reduces costly invoice expenses

· Makes sure that your invoice processing & payment is secure

· Offers audit-ready reports to save you time

· Offers all the above facilities and more in an easy-to-use dashboard.


Why is invoice automation essential?


Let's twist the question why not invoice automation? If you are ambitious to grow your business in this fast and tech-advanced world, you will give up the methods that anchor you down and don't allow you smooth sailing. The tides in the procurement business are never easy, so why let your workflow suffer when you have the seamless solution at hand!


Let's take a brief look at the Benefits of invoice automation


1. Streamlines the process:


As you can decipher, traditional processing is tedious and counterproductive. Automation streamlines your invoice processing and offers a seamless angle to the whole matter.

2. Saves your money:


Invoice automation reduces accounting overhead by increasing efficiency and simplifying the process. Thus, you can utilize your resource for better purposes


3. Prevents fraud:


The invoice automation software is built-in with security features. Thus, using such solutions can protect your business against fraud.


4. Enhances cash flow management:


A more efficient payments process reliable and accurate data means improved cash flow management.


5. Improves Vendor Relations:


Invoice automation dramatically reduces the errors, number of follow-ups, and hence delayed payments, consequently improving the vendor relationship management.


6. Enables remote work:


Remote work is a necessity in the current times, but with the traditional invoice processing, remote working is next to impossible. the easy-to-use invoice automation software can be the perfect solution here.


So, are you ready to automate your invoicing process?


Transform your business workflow with a seamless solution and stay relevant in this tech advanced world. Know more about invoice automation and its benefits for your business by scheduling a demo with Skyscend!

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