7 Quick Wins of Invoice Automation Adopters
Published: 03/08/2020
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This article is intended for operations teams and business owners. We strongly encourage adopting invoice automation software if you want to scale your business. Regardless of the industry, manual invoicing is neither cost-effective nor time-efficient. Now is the perfect time to make a switch.
Although invoicing is an essential process, no one enjoys it. It’s a tedious manual task that consumes a lot of time. Even then, it’s susceptible to errors that can result in significant costs. Additionally, mistakes can severely damage relationships with the invoiced party, as well as your reputation and credibility. In other words, when it comes to manual invoicing, you face serious risks.
There is, however, a way to reduce them, as well as a method to never raise another invoice again. If these two factors don’t sound convincing enough to begin automating the invoicing process, we have a couple more benefits listed below. Whether you are toying with the idea yourself or looking for a way to persuade stakeholders to buy in, we recommend you give this list a read.
Before we jump into listing the benefits of invoice automation, we feel the need to emphasise that you will require a SaaS (software-as-a-service) solution to accommodate this approach. The type of software you should choose largely depends on your business needs. Most frequently, invoice automation is one of the features rather than the entire platform itself. So, don’t pursue the first solution that includes this module if the rest of the functionality is not aligned with your goals. There is a more suitable solution for you; you just need to look a bit more closely.
Automated invoice processing provides several significant benefits for any business, regardless of the industry. Here are some of them:
Accuracy;
Auditing;
Integrations;
Better cash flow;
Supports productivity;
Smoothens communication;
Consistent branding.
However, these are relatively broad terms. Therefore, we will examine each of them separately to explore where they would fit into your strategy.
Humans are prone to making mistakes, even when these errors can potentially be costly. As discussed in the opening, errors in invoices result in both financial and personal damages. An automated process, on the other hand, minimises this risk. Instead of entering the numbers manually, they will be extracted and then inserted into the invoice from the original source. This approach is not only safer but also faster.
Please note that both the accuracy and depth of automation will increase if you integrate the invoicing software with other solutions you have, such as accounting, project management, and others.
Another benefit of an automated invoicing system is that it simplifies document management, consequently enhancing auditing processes. It enables you to easily link documents, such as receipts and purchase orders, to their corresponding invoices. Reducing the amount of physical paperwork also minimises the risk of documents going missing. In other words, it’s easy to stay on top of your expense management.
Our recommendation is to consider solutions that include centralised document storage along with the automation tool. This way, you'll have everything stored in one place, further streamlining the process. We are confident you will find this feature useful for a variety of other purposes.
Having briefly touched on the integrations, we believe it’s a topic that requires further expansion. In addition to the few advantages we’ve already listed, integrations also enhance the functionality of tools and eliminate the need to repeatedly input the same data across different solutions.
To provide a more specific example, let’s assume you integrate the invoicing tool with the accounting one. If they are separate, you would need to extract the invoice data and then manually enter it into the accounting software. However, if the two are integrated, the invoice information is automatically incorporated into the operations and/or reports of the accounting solution. There are many more examples of how you can utilise integration or which tools you connect, depending on your strategy.
The most common reason for adopting invoice automation is that it aids cash flow management. It’s quite logical: the longer it takes to generate and send out an invoice, the longer it will take to get paid. Automating invoicing brings you straight to the final step within just a few clicks.
Producing and sending e-invoices is easier and faster. Reducing the time between completing work and receiving payment can be especially beneficial for small and medium-sized businesses with limited cash flow. Whether invoicing or clearing invoices, automating the process significantly speeds it up. This leads us directly to the next point.
Shorter pay and bill processes lead to better productivity. There is less back-and-forth that can prevent you from taking the next steps. Naturally, once you have more time available, in this case from completing repetitive manual tasks, you can reinvest it into progress-driving processes.
There is another productivity-driving aspect to automation. Let’s face it - day-to-day tasks like data insertion, especially in high volumes, can be soul-crushing. Not only does it become boring, but it also fails to give your staff a sense of achievement. This can lead to a loss of motivation and eventual burnout. Happy employees who feel and recognise the impact of their contributions are more likely to put in extra effort and thereby excel in performance.
Your clients are bound to appreciate receiving their invoices promptly after the work is complete, as well as the ease of paying those invoices online securely. This streamlined transaction is sure to enhance the customer experience and will naturally build the trust they have in you, which is a powerful driver of future relationships.
It works similarly with contractors. Whether you work with them on the client’s behalf or hire them to assist your business, a quick and accurate invoicing process leads to numerous benefits. It establishes you as someone who is easy to work with; therefore, your projects are likely to be prioritised. A long-term relationship with the contractor also results in improved outcomes and faster completion, as you become increasingly aligned with one another’s needs, demands, and limitations.
Similarly to how you want to ensure your communication style, message, and branding are consistent across platforms, you want the same for your documentation. This gives your business a reputation and adds a layer of trustworthiness. For example, would you sign a document that has a different logo from the one that provided it? It would raise some suspicions. Even if you chose to research the matter further before eventually signing, think of the time you’ve wasted confirming it was, indeed, the same company.
It’s important that all documents you send out are branded with your company name, logo, and colours – invoices are no exception. A good e-invoicing function, like the one at Timesheet Portal, will provide your business with bespoke templates that match your corporate colours and layouts.
Gone are the days when invoicing was one of the dreaded manual tasks you just wanted to be done with. Today's technology can relieve you of the labour involved in putting together and distributing invoices. Additionally, it provides a plethora of other benefits that not only speed up your business processes but also offer valuable insights for future development.
It’s worth remembering that invoice automation software is typically a module included in a more specialised platform, such as a pay-and-bill or project management solution. Therefore, you should always thoroughly research the full functionality and pricing model of the software to ensure it aligns with your overall business.
Why not start with Timesheet Portal?