Tips to Reduce Invoice Processing Costs
If you keep a close watch on costs incurred at your company, you would know how automating certain critical areas can help your business be more cost-effective. One of the major areas where you can cut costs is in the area of invoice processing.
Processing invoices is an essential part of transactions that takes place between buyers and sellers as they negotiate the details of sales. The reason why this step is considered to be critical is that invoice processing was hitherto considered time-consuming and often not as efficient, as the processing happens manually.
Companies, especially small and medium-sized businesses, rely heavily on manual workflows when it comes to invoice processing. These workflows have been a source of many problems because they are slow, unorganized, and can be fraught with errors. Every manual step in an invoice processing system may trickle down to accumulate unnecessary costs that may hurt your budget:
Time is money: Time value of money is one of the core principles of finance that holds that any amount of money is worth more the sooner it is received. Following the lengthy procedure of manually allocating invoice numbers, sending purchase orders after invoice approval, and affixing signatures might appear relatively straightforward. Still, it’s a tedious procedure that not only takes a sizable chunk out of your invoicing budget but also wastes the precious time spent by your invoicing team.
Exceptions: When we speak of manual workflows, it is fairly natural that the invoices could have possible exceptions. The stressful job is to search for these exclusions and fix them. According to a survey from The Institute of Financial Operations and Brainware, roughly 61 percent of invoices in accounts payable departments worldwide are still paper-based.
The exception handling procedure in paper invoice processing may incur massive expenses and require some time. And when there are mistakes, the errors have to be repaired. This intensive procedure for acceptance, exception handling and error corrections takes a considerable toll on labor costs.
Increased audit prices: If we examine the crux of the auditing, then the entire cycle revolves around – who approved payment, what was approved, and when it was approved, when and how far the payment has been made. Assessing this audit procedure at a larger scale at which is time-consuming. If you are paying your auditors by the hour, that will most likely be a long bill.
The best way to reduce invoice processing costs is to automate as much of the processing function as possible. This means you need to look at the way you set up and use your workflows in order to identify areas where manual entry errors can occur and to eliminate these problems. A great way to do this is to use the apt tool to process your invoices; one that can check each transaction against its documentation, and then eliminate the steps that don’t match the details provided.
How does SkyscendPay help?
Improved precision: The AI-guided invoice processing system effectively corrects errors and handles exceptions cleverly. The info will remain up-to-date and sync automatically, cutting the possibility of human error from the process.
Faster approvals: It reduces the odds of unwanted delays in the process as the entire company works on a centralized interface- making it easier to approve invoices. Everybody has specific functions, and they keep the process going. Thus, all of the procedures in businesses become quicker and better.
Save more with digital processing: Collaborating with SkyscendPay’s Intuitive Dashboard will decrease the demand for heaps of paper, thereby eradicating the need to store and transport invoices saving operational costs.
Reduces cost of labor: When you automate your invoice processing, your employees can concentrate on more critical tasks. As a result, the workflows will run smoother and quicker than before.
Now that you have a clearer understanding of the actual costs in manual invoicing, it is time to switch to automatic invoice processing by SkyscendPay.
You can use SkyscendPay to automate the entire invoicing process and cut costs while allowing you to spend your time focusing on the other aspects of your business that are vital to its success. Harness the power of automation, avoid mistakes, escape valuing-draining anxiety, and save time wasted in manual workflows; SkyscendPay is the optimal solution for you.