How Does Automated Invoice Processing Work And What Are Its Main Benefits

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( — November 4, 2021) —

How Does Automated Invoice Processing Work And What Are Its Main Benefits

If you are running a company, it doesn’t matter what line of work you are in, you are dealing with a lot of technical stuff every single day of the week. One of those things is definitely invoice processing. This can be very mundane and hard work for your employees. However, in order for your company to work smoothly, those accounts payable invoices have to be processed properly. Unfortunately, as with many things, human errors are there to make life complicated.

The bad news is that when errors occur in invoice processing, the company loses a lot of money. More importantly, it loses its reputation. This is exactly why introducing the AP Automation to your office will save you a lot of money and nerves. If you are not familiar with this method, here are a few things you need to know about how it works and the benefits it will bring you.

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How Automated Invoice Processing Works?

This new concept can be a bit confusing to a lot of business owners, but once you read a little bit about it, things become clear. Let’s see what this method is all about. The most important thing AP automation brings to the table is the shift from technologies based on the traditional paper invoicing to more sophisticated technologies and software. Here’s how this works.

Considering the fact that the majority of invoices today are being written in a hard copy format, the new method brings a new automation solution. The so-called optical character recognition (OCR) tools. The main purpose of those tools is OCR invoice scanning or, to put it plainly, reading the information and capturing the data.

Even though the OCR invoice capture is an automated process that drastically reduces manual entry errors, it has to be monitored by workers.

What is the main difference between the old school invoice processing and this new method?

Instead of workers having to write down the data manually, the OCR invoice processing technology simply imports and analyzes the data directly, without the need for human involvement. This lack of human interaction reduces the risk of errors and makes the process easier and smoother. Take a look at Coupa’s solution:

The Main Benefits Of Automated Invoice Processing

Since you know how this technology works, it’s time to talk about the benefits it can bring to your company. Here are the most important things you need to consider.

It Eradicates The Misplaced Invoices

One of the main issues companies have when using the old school method of invoice processing is the big number of misplaced invoices. As you know, this can cost the company a lot of money and it can ruin the relationships you have with loyal customers and clients. The best thing about the automated invoice processing is that it eradicates the misplaced invoices. This will preserve your reputation and save your workers from doing extra work because they won’t have to fix the issues.

It Makes The Office Less Stressful

Processing the invoices is important, detailed work. This means that, when done manually, errors can occur. When there are errors, workers have to stay late to fix those issues. This makes the office a stressful environment. As an experienced manager, you definitely know that a stressful office is not a productive office. Automating this process can reduce the level of stress at work and this will make the employees more productive.

It Saves Money

Making a profit is what keeps your company alive. It doesn’t matter what you do for a living, this is the number one rule. Losing too much money on production is something you can’t afford. This is exactly why you should consider using automated invoice processing technology. This method doesn’t require people to operate the equipment. In other words, you won’t have to pay the staff for processing invoices. Sure, you will have to spend a bit of money in order to get the required equipment, but this investment will definitely pay off, rest assured.


There are plenty of benefits automated invoice processing can bring to your company. The most important ones are the eradication of misplaced invoices, the reduction of stress in the office, and the reduction of production costs. Using this technology seems like a good thing. However, this is a big change for you and your workers. You have to find the right way to implement this technology and educate your staff on how to use it. If you manage to get the proper equipment and train the employees, your office will be much more productive, no question about it. If you are on the fence about whether or not to get this technology for your company, the benefits we talked about today might convince you to try it.