Paying outstanding invoices on time is a critical part of business success. It impacts your cash flow, credibility, and supplier relations. Accounts payable automation can streamline and accelerate the process. Before you make an investment in invoice processing software, you should know the difference between accounts payable automation software and electronic invoice processing solutions. We’ll explain all below.
What is Electronic Invoice Processing?
Essentially, electronic invoicing processing is simply capturing invoices into an electronic database. From there, you still require dedicated staff members to match the invoice with a purchase order. While it cuts down on paperwork, it doesn’t eliminate the man-hours spent on paying accounts.
It also still has to go for approval manually, whereafter the finance department has to do payment routing. After this, the invoice must still be archived for tax and audit purposes.
What is AP Automation?
Invoice processing software automates the entire process, from matching the invoice to archiving. It speeds up the entire process without taking up the time of staff members. A sped-up process also means that vendors get paid on time or even that you can take advantage of early-payment discounts.
The Main Differences Between Electronic Invoice Processing and AP Automation
Invoice processing software is very different from electronic invoice processing. The first major difference is the automation part. An electronic invoice processing system doesn’t automate the process, which means manual labor is still necessary.
An invoice processing system speeds up the process, whereas an electronic invoice processing only eliminates paperwork. An electronic invoice system can’t automate the process of matching the invoice with a payment, sending it for approval, or giving approvers information on all internal communication around the invoice.
An automated invoice processing system also gives you an overview of all payments and orders, which an electronic invoice processing system can’t do. This allows you better control of the cash flow and can help you make strategic decisions.
Invoice processing must be quick and efficient to help the business grow. While an electronic invoice system has its advantages, if you really want to speed up the process, it’s a good idea to invest in an automated process.
Help your business grow by streamlining accounts payable. Invest in an automated system today!