How to Choose the Best Automated Invoice Processing Software

Accounts payable (AP) professionals are no stranger to the frustrations of manual invoice processing.

Tedious data entry, the constant risk of errors, and inevitable delays – these are everyday hurdles that slow down AP processes, create inefficiencies, and increase the likelihood of costly mistakes.  

With the increasing pressure to speed cycle times, reduce errors, and improve overall efficiency, it’s no surprise that many AP leaders are turning to automated invoice processing software to streamline operations.  But with so many options on the market, how do you choose the right solution?

This article explores how automated invoice processing software works and its benefits, introduces you to ibml’s solution, and offers strategies for selecting the best software for your department.

What Is Invoice Processing Software?

Invoice processing software automates the entire invoice lifecycle – from invoice receipt and data capture to invoice approval and posting.  Traditional AP processes involve manually handling and reviewing each invoice, which is costly, time-consuming, and prone to human error.  

Automated invoice processing software, on the other hand, uses technology such as artificial intelligence (AI) with machine learning, optical character recognition (OCR), robotic process automation (RPA) and digital workflows to capture and process invoices quickly and accurately.

Automation eliminates much of the manual work associated with invoice processing, offering features like matching of invoices to purchase orders (POs), routing of invoices for approval, and seamless posting of invoice information to an enterprise resource planning (ERP) application. 

The Benefits of Automated Invoice Processing Software

Automating the processing of supplier invoices radically changes the way that AP operates.  

• Increased efficiency.  By automating tasks such as data entry, invoice matching, and approval routing, AP teams can handle higher volumes of invoices in less time.  This improves workflow efficiency, reduces processing times, and frees up staff to focus on higher-value tasks such as analyzing data for opportunities to capture early pay discounts. 
• Reduced errors.  Errors are inevitable with manual data entry.  Automating the capture of invoice header and line-item details – information such as the supplier’s name and the invoice amount – reduces the risk of duplicate payments, overpayments, and other errors, all of which can affect vendor relationships and chip away at your organization’s profitability. 
• Cost savings.  Reducing manual intervention lowers the cost of processing invoices.  It also reduces the need for paper, printing, and storage, all of which add up over time.  Plus, faster processing means you’re less likely to incur late payment fees or miss out on early payment discounts.  And automation helps organizations scale without the need to hire additional staff. 
• Enhanced visibility and control.  Automated invoice processing software provides real-time visibility into the status of each invoice.  AP staff can track where invoices are in the approval process and quickly identify and resolve bottlenecks.  Graphical dashboards, drill-down capabilities, and mobile access put Key Performance Indicators (KPIs) and smart insights into invoice data at the fingertips of decision-makers.  This level of visibility and control improves operational performance and helps optimize cash flows and corporate spending. 
• Streamlined compliance.  Automated invoice processing software helps ensure that all your processes comply with regulatory requirements, including tax and audit standards.  You can also set up workflows that adhere to your internal policies for approval and payment. 
• Increased security.  The best invoice processing software includes user access permissions, automated segregation of duties, systematic workflows, full audit logging, advanced data encryption, and other built-in controls to mitigate the risk of cyberattacks and payment fraud. 

Automating the processing of supplier invoices revolutionizes the way AP functions.  By boosting efficiency, reducing errors, cutting costs, enhancing visibility, ensuring compliance, and increasing security, automated invoice processing software allows AP teams to streamline operations and focus on more strategic tasks.  With these benefits, AP can not only optimize day-to-day workflows but also drive long-term improvements in profitability, cash flow management, and risk mitigation.

Introducing ibml’s Invoice Processing Software

ibml offers invoice processing software designed to enhance efficiency and accuracy.  

ibml’s software leverages intelligent capture technology that extracts relevant data from invoices with incredible speed and accuracy.  The software is built to integrate with an organization’s existing ERP or financial systems, enabling frictionless workflows from invoice receipt through posting.

ibml’s software automates the entire invoice processing lifecycle: 

• Receipt.  All invoices are aggregated on a single platform.   
• Capture.  Invoice data is extracted using intelligent data capture technologies.
• Routing.  Configurable workflows enable organizations to create approval hierarchies and digitally route invoices based on an organization’s unique business rules. 
• Posting.  Integration with ERPs ensures the smooth flow of data between platforms.
• Reporting.  Users have instant insights into your invoice processing performance.
• Control.  Enhanced security protects data throughout the invoice lifecycle.

With ibml’s automated invoice processing software, organizations can fully automate and optimize their invoice workflows, improving efficiency, accuracy, and control at every stage of the process.

Strategies for Choosing the Best Invoice Processing Software

Selecting the right invoice processing software is crucial for ensuring your AP department runs smoothly and efficiently.  Here are some strategies to guide your decision-making:

• Identify your pain points.  The first step in selecting the right invoice processing software is to assess your current processes and pinpoint where the biggest inefficiencies lie.  Is manual data entry leading to frequent errors?  Are approval workflows causing delays?  Do you lack visibility into the invoice lifecycle, making it hard to track status or spot bottlenecks? Understanding your specific pain points will help you prioritize features that address your challenges.  For example, if you’re dealing with high error rates in data entry, look for software with intelligent data capture technology.  If approval delays are an issue, consider a solution with robust workflow automation and configurable approval hierarchies. 
• Prioritize adaptability and scalability.  Your AP processes today may look very different in a few years as your organization grows or business needs change.  When evaluating automated invoice processing software, consider not just your current needs, but also whether the software can scale with your business.  Will it handle larger volumes of invoices or additional workflows without compromising speed or performance?  Some software solutions are designed for small to mid-sized organizations, while others can handle the demands of large, enterprise-level organizations.  Choose software that can grow alongside your organization, so you won’t need to invest in a new solution as your invoice volume increases. 
• Ensure seamless integration.  An ERP is the financial nerve center of your organization.  An automated invoice processing solution should integrate easily with your existing systems, particularly your ERP and accounting software.  Seamless integration ensures that data flows between systems without the need for duplicate entry, reducing the risk of errors and speeding up the entire process.  When choosing a solution, check for compatibility with your current tools.  Does it integrate with your ERP, procurement, or payment platforms?  Will it require custom integrations, and if so, what are the associated costs and timelines?  Strong integration capabilities are essential for creating a smooth, end-to-end invoice-to-pay process. 
• Prioritize ease of use.  While powerful features are important, the invoice processing software that you choose should also be easy for your team to adopt and use.  A steep learning curve can slow down the implementation process and lead to poor user adoption.  Look for a solution that has an intuitive interface and provides adequate training and support for your team.  User-friendly dashboards, drag-and-drop functionality, and clear workflows can make a huge difference in how quickly your AP department adapts to the new system.  Determine how easily your team can navigate the software before purchasing a solution. 
• Consider vendor support and customization options.  Every AP department has unique workflows and processes, so the software you choose should offer configurable features to suit your needs.  Can you configure the workflows to match your organization’s hierarchy?  Can you set rules for invoice matching and exception handling?  Configurability is key to ensuring the software fits easily into your operations.  Look for providers that offer robust customer support, from setup and training to troubleshooting and ongoing maintenance. 
• Focus on security features.  The sensitive financial information that AP handles makes security a top priority.  Look for solutions that offer strong data encryption, role-based access controls, and secure storage of sensitive data.  The software should also comply with relevant regulatory requirements and offer audit trails that allow you to track who has accessed and approved invoices.  Security breaches or unauthorized access to financial data can have significant consequences, so make sure the solution you choose prioritizes data protection. 
• Evaluate ROI.  While cost is a key consideration, it’s important to evaluate the potential return on investment (ROI) of any automated invoice processing software.  Consider how much time and money your AP department spends on manual processes, from data entry and error correction to approval delays and missed discounts.  Automated invoice processing software can lead to significant savings by reducing labor costs, minimizing errors, and ensuring timely payments.  When evaluating the cost of a solution, consider upfront licensing fees and ongoing costs such as maintenance, upgrades, and user training.  Weigh these costs against the expected benefits and ROI to ensure the software delivers long-term value.

Choosing the best automated invoice processing software requires a thoughtful evaluation of your AP department’s unique needs, pain points, and long-term goals.  By prioritizing adaptability, seamless integration, ease of use, and security, and ensuring that the solution offers strong vendor support and measurable ROI, you can select software that will not only streamline your current processes but also scale with your organization as it grows.  Investing in the right invoice processing solution will empower your AP team to operate more efficiently and effectively, driving long-term success.

Conclusion

Automated invoice processing software like ibml’s can help organizations improve accuracy, reduce costs, and speed up invoice approvals.  But these benefits are only possible with the right software.   Choosing the best automated invoice processing software requires a careful evaluation of your pain points, future needs, and the specific features that will deliver the most value to your AP department.  By focusing on scalability, integration, ease of use, security, and cost, you’ll be better positioned to select a solution that optimizes your processes and allows your team to focus on more strategic tasks.