Invoice Processing Software: Features & Benefits

What is automated invoice processing software?

Automated invoice processing software is a transformative solution for businesses to streamline their accounts payable operations, eliminate inefficient manual work, and optimize cash flow management.

This innovative software uses advanced technologies such as artificial intelligence (AI), machine learning, optical character recognition (OCR), and automation to digitize, validate, process, and manage invoices seamlessly.

By automating these traditionally tedious and error-prone tasks, automated invoice processing software helps organizations achieve greater accuracy, increase efficiency, and gain control over their financial processes.

Key features of automated invoice processing software.

Invoice capture.

Automated invoice processing software captures data on invoices from various sources, including email attachments, scanned documents, and electronic submissions.

OCR technology extracts relevant data like invoice number, vendor details, and line item information, converting the unstructured data into structured digital formats for further processing.

Invoice matching and approval workflows.

Automated invoice processing software conducts invoice matching against purchase orders (POs) and receipts to verify the accuracy of billing and pricing.

The software automatically flags discrepancies and routes invoices through predefined approval workflows for resolution.

Approvers can review and approve invoices electronically, speeding up the approval process and reducing cycle times.

Automated coding and posting.

Upon approval, the software automatically codes invoices to the appropriate general ledger accounts based on predefined rules.

Integration and ERP connectivity.

Automated invoice processing software seamlessly integrates with existing accounting ERP platforms, for seamless data syncing and workflow orchestration.

Vendor management and communication.

The software facilitates seamless communication with vendors through automated notifications, status updates, and self-service vendor portals. Vendors submit invoices electronically, track payment status in real time, and resolve inquiries or disputes efficiently.

Benefits of automated invoice processing software.​

Improved efficiency and productivity.

By automating manual tasks like data entry and approval routing, automated invoice processing software significantly reduces processing times and frees up staff to focus on value-added activities.

This increased efficiency also enables organizations to process invoices faster, reduce backlogs, and improve overall productivity.

Enhanced accuracy and compliance.

Automated invoice processing software reduces the risk of human error and ensures consistency in invoice processing. This in turn reduces the likelihood of overpayments, duplicate payments, and non-compliance with contractual terms or regulatory requirements.

Cost savings.

By eliminating manual tasks and paper-based processes, automated invoice processing software helps organizations lower operating costs and labor expenses The software also helps organizations capture early payment discounts, avoid late payment penalties, and negotiate better terms with suppliers.

Faster payment cycle times and improved cash flow.

Automation accelerates the invoice processing cycle, enabling organizations to pay suppliers faster and optimize their cash flow. By streamlining approvals, reducing processing bottlenecks, and providing real-time visibility into payment status, automated invoice processing software strengthens vendor relationships, and supports strategic financial decision-making.

Scalability and flexibility.

Automated invoice processing software is highly scalable and adaptable to the evolving needs of organizations, regardless of size or industry. Whether processing a few hundred invoices or thousands per month, the software can accommodate growing volumes and scale operations seamlessly.

Airbase: Automated invoice processing software.​

Airbase automated invoice processing software is a comprehensive solution that:

• Streamlines invoice capture with state-of-the-art OCR and AI.
• Matches invoices to purchase orders.
• Leverages approval workflows to ensure all stakeholders approve an invoice before payment.
• Offers multiple payment options, including international payments, and automated payment scheduling.
• Has a secure vendor portal where vendors can manage payment information and track payment status.