24. April 2023
How technology facilitates invoice processing
The famous English poet and writer William Shakespeare puts it succinctly: “Money is round and rolls from one to the other. It will not stay in my purse.” So expenditure cannot be avoided. Likewise, income is a welcome counterpart.
For many companies, processing invoices and other documents has become an essential part of their daily business. The larger the company, the more invoices there are to process and manage. The manual processing of paper documents, however, costs a lot of time and nerves and is also highly error-prone. If companies decide to automate this process, they not only speed up their processing, but can also reduce their costs and minimise errors.
Digital invoice workflow: How it all begins
The electronic capture of invoices usually starts with the conversion of the physical documents into a digital format. Here, scanners or special software solutions can be used to convert the invoice data into a digital format. This can result in PDF or XML files, for example.
In order to be able to process the captured data further, it must be structured. Various technologies are used for this, including OCR systems (Optical Character Recognition). OCR systems make it possible to automatically read texts from scanned documents and convert them into a structured format. The technology can also be combined with machine learning methods to increase the recognition rate.
Another way to automate invoice processing is to use Robotic Process Automation (RPA). RPA technology enables certain tasks to be carried out automatically without the need for human intervention. Here, for example, automatic bookings of invoices or payments can be carried out.
Cloud technology can also be used to increase the efficiency of invoice processing. By storing invoice data in the cloud, it can be accessed from anywhere, facilitating collaboration and access to information.
Classification, checking, booking: simple, fast, automatic
Another important step in the processing of invoices is the automatic classification. Here, the invoice is automatically classified into different categories, such as suppliers, cost centres or type of service. Machine learning methods are also used here to increase the accuracy of the classification.
Once the invoice data has been captured and structured, it must be processed further. An automatic check for formal correctness of the data is carried out, for example to check details such as date, amount or tax ID for correctness. If discrepancies are found, the invoice is forwarded to a clerk.
After a successful check, the data is transferred to an ERP (Enterprise Resource Planning) system and usually automatically posted. This can be SAP or Microsoft Dynamics, for example. The archiving of invoice data is usually automated. However, the data must be archived in a certain form in order to comply with legal requirements.
Digital invoice processing: A companion in a class of its own
Invoices and documents are a necessary part of doing business, but processing them manually can be time-consuming and error-prone. Fortunately, technology exists to help businesses automate and simplify the process. From converting paper documents into a digital format to using OCR systems, machine learning methods, RPA technology and cloud storage, there are numerous ways to improve invoice processing efficiency. Automatic classification, verification and posting of invoices can also be automated quickly and easily. Companies that switch to digital invoice processing can not only reduce their costs, but also minimise errors and save valuable time.
Efficient invoice processing with Amagno: Digital instead of paper
Are you looking for a more efficient way to digitise your accounting and make it GoBD-compliant? Then Amagno can support you with your project. Simply send us an email at firstname.lastname@example.org or call us on: 0441 / 309 123 00. Our competent sales team will be happy to show you how you can quickly and easily digitise your documents and manage them in a legally compliant manner with Amagno.
More information as well as a general overview of the topic of digital invoice receipt can be obtained here.