Invoices around the world are in the billions globally. As purchasing continues to evolve and become more streamlined, this number is only going to increase. Some estimates show that the number of annual invoices will increase fourfold over the next 10 years. Therefore, just by sheer volume alone, an automated invoice management system would greatly benefit any company. But let’s evaluate the top six reasons your company needs an invoice management system.
Invoice Management Systems Save Time
Typically, an automated invoice management system cuts the number of steps it takes to process an invoice in half. Without waiting as much on human interaction, those steps are also significantly faster, occurring in real-time. Estimates show that the total reduction in human time for invoicing is 80% after switching to an automated invoice management system.
Invoice Management Systems Save Money
In addition to the savings in time, which directly correlates to cost in employee hours, invoice management systems can also save direct dollars. For those who process a high volume of invoices, switching to electronic versus printed will save a great deal in the form of less paper and can even eliminate full-time employee (FTE) costs. Late and duplicated payments are also eliminated, reducing employee hours further, resulting in savings.
Invoice Management Systems Assist Cash Flow Management
By automating your invoicing procedure, you can get a more detailed and accurate idea of your short- and long-term cash flow. This makes planning your next move or expansion that much easier as you have real-time, precise data regarding your cash flow, allowing you to prepare for growth in many different areas. With better data regarding your cash flow, you can also look for ways to increase efficiency in your processes.
Increased Efficiency and Accuracy
Even the best people make mistakes. Your top employees have other responsibilities that may push invoicing further down the queue, no matter how good they are. Removing the human element eliminates errors and expedites the process. Also, processing everything in real-time with automated generation and approvals makes this process’s efficiency optimally maximized. With a well-designed system, even those outlying exceptions can be adequately automated. With checks built into the system, the accuracy is increased even further.
Automating Invoices Allows for Automating Compliance
Your invoices will be crucial data when ensuring you are compliant with financial and tax regulations. When audited, knowing what you purchased, how much, and when, will be necessary for the auditor. Paper-based invoices are easy to lose or misplace, not so with an invoice management system. Invoice management systems can automate compliance simply by providing an easy mechanism for all auditors to get the information they need. With real-time updates, all aspects are accounted for at all times.
Dashboard Management Offers Many Improvements
Any invoice management system worth its salt will have an extensive, intuitive, and easy-to-use dashboard to access all invoicing data. This dashboard allows you to have immediate, real-time insight into what has been paid and what is outstanding and provides reporting on these and other aspects. A sound invoice management system also provides you with direct integration with your accounting software and payment systems, allowing for credit card and online payments to further automate and simplify your business processes.
Take control of your invoices to improve efficiency and accuracy while saving time and money.