What is Invoice Management System and How Important is it for your Business
Invoice management software can help companies automate tasks related to invoice processing. When invoices are received by a business or accounting department, these invoices generally go through an approval process and then their information is compared with purchase and sales orders and payments.
Invoice management software simplifies this workflow by scanning invoices, reading data and extracting it into the system, and transferring payments electronically. In addition to distributing payments and selecting accounts for each payment, some solutions also offer mobile applications for remote viewing and approval. Once the invoice is processed, it is stored in the cloud or internally for easy access in the future. In addition to automatically capturing data, these tools often allow manual entry of invoice data.
These software solutions eliminate the need for paper records, manual data entry, and check writing, thus benefiting the accounting department. Many invoice management tools also provide other types of software or integrate with other types of software, including invoicing software, purchasing software, and accounting software.
To qualify for inclusion in the Invoice Management category, a product must:
- Pull invoices from other software or through scanning and OCR
- Store invoice files, along with approval and payment history
- Consolidate the multiple invoices or split an invoice into multiple
- Provide a standard approval workflows that can be customized by users
- Match the invoices with purchases and sales orders, as well as with payments
- Sync with your company accounts to transfer payments for approved invoices
- Track different types of payment such as deposits or partial payments
- Apply for multiple payments to one invoice or one payment to multiple invoices
- Monitor your due dates and late payments for AR and AP invoices
Decreased Error Rates
The system’s invoice management system can significantly speed up invoice processing and reduce accounts payable expenses. In addition, it simplifies the relationship with other suppliers and customers. With the advent of automated systems, its powerful functions integrate intelligent invoice collection and digitization, production processes, electronic invoices, optical character recognition (OCR), EDI extraction and other functions, thus reducing the error rate.
Real-time invoice-processing clarity
The non-automated billing process is fragmented, time-consuming, expensive, error-prone, and largely ineffective. Managers can view analytics reports in real time to better understand the number of invoices, status, and process bottlenecks, which is an important value of automated invoice management systems. There are some reports:
- Central reports
- Audit reports
- Overdue payables
- Exception analysis report
- Cash premium forecast
- Supplier payment analysis
- Productivity report
- Key process report
Fast reconciling of purchase orders
This automatic invoice management can reduce the hassle of managing supplier invoices, purchase order invoices, credit notes, and delivery letters. It can significantly reduce the time required to track missing invoices, goods purchases, transportation orders, etc.
Builds Brand Identity
When you issue the necessary invoices to clients and clients, you enhance your identity and give you the opportunity to get paid on time. Since the invoice is digitised in the automatic Invoice management system, it generates a personalised message to greet customers and clients when they receive the invoice, such as “thank you”. In this way, you can better promote the sale of new products or services. In general, it will show your positive attitude towards customers and clients, which will improve your brand image.
When you start any business, you will be surrounded by countless tasks and projects. The bigger the project, the more expenses you will have to manage. With these, your invoice management should also be more specific to each item. To manage your invoices effectively, you can not only choose to use Excel spreadsheets, but also use more advanced features to automate all your invoicing tasks. That is project management software. Software plays an important role in invoice management. Let’s see how!
When there are a large number of customer and customer project expenses, the software can reduce your workload. With its advanced features, you can automatically generate invoices and one-time invoices. You just need to keep track of time, adding hourly rates and compiling with invoice reports, all the work can be completed in a few minutes. This will reduce your workload and turn your least favourite task into the most selected task.
Furthermore, the project management software has an automatic invoicing function, which can prepare and resend invoices automatically with just a few clicks, sending you invoices automatically. It allows users to set up email alerts for overdue bills, further reducing their workload and saving additional time.