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7 Ways invoice automation cuts business costs

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Paper-based invoice processes aren’t cheap. In fact, one study found that companies spend $13-$20 per invoice. Companies with highly complex invoice processes can spend up to $40! As your company grows and processes an increased number of invoices, the cost to do so will only increase.

But, by incorporating automation into the invoicing process, companies are able to experience a 29% reduction in invoice processing costs. For some companies, this can save hundreds of thousands of dollars. Money saved on invoicing costs means more money to put towards branding, marketing, hiring, and much more.

Keep reading to learn 7 ways that using an invoice generator cuts costs and makes your business more efficient.

7 Ways invoice automation cuts business costs

1. Eliminate the Use of Paper

One of the biggest concerns for accounts payable departments is the number of paper documents that must be used. A recent report found that the average office worker uses 10,000 sheets of paper a year. If your company uses a paper-based invoice process, you may exceed this average. Not only is paper itself expensive, but your company also incurs costs for printing and equipment maintenance.

By using an automated invoice solution, you can greatly reduce if not eliminate the costs associated with paper and printing. Using less paper also makes it easier to organize and manage invoice while also reducing the risk of lost invoices, which can have a serious implication come tax time.

2. More efficient information management

Providing employees an organized environment ensures your team can be as productive and efficient as possible. Manual processes require employees to spend time printing, filing, archiving, and retrieving paper-based documents.

But as we all know, these manual processes take time and take employees away from important skill-based duties. The more time employees spend completing manual processes, the more expensive information management becomes.

By automating the invoice process, you can minimize the cost of managing information. Instead of sifting through file cabinets and printing copies of invoices, employees can organize documents using folders or metadata tags, and collaboration is as easy as sharing a document via the cloud.

3. Reduce labor costs

Manually processing invoices requires a human touch every step of the way. From accepting invoices to reviewing them to paying them, a human employee is needed to push invoices through to completion. Manual invoice processing is labor-intensive which means you have to pay employees to do the work.

By using invoice automation software, you can reduce manual operations, which means an overall cost reduction. The invoice process can’t be made entirely automated, as human input and quality checks are necessary, but the automation that is used will greatly improve efficiency and decrease time spent.

4. Task duplication

Invoicing can require the work of several members of the accounting team. But, without a formal process in place, it’s easy for team members to be working on the same task without ever knowing! An automated solution not only generates invoices with the click of a button, but workflows can also be built in to allow invoice tasks to be assigned to a specific team member.

This reduces the risk of task duplication and overall confusion.

5. Faster invoice processing

Manual invoice processing is anything but quick. It takes time for employees to create, file, analyzes, and maintain paper-based invoices. Excess time spent on invoicing tasks can quickly become quite expensive. Time is money and the more time spent completing a task, the more money it costs. With an invoice generator program, tasks can be completed more quickly, which means reduced operating costs.

An automated invoice process allows an invoice to be routed in just a few clicks. There’s no need to print or pass around an invoice. Quick processing minimizes the risk of late payment penalties and shows clients and customers that your company is professional.

6. Reduction in errors

Employees aren’t perfect, and everyone makes mistakes. When your accounting team is looking at numbers for hours on end, it’s only human for someone to make a mistake. However, errors not only result in wasted time but wasted money as well. Locating and correcting invoice errors takes a lot of time, which slows down the rest of the invoicing process.

Accuracy is crucial when it comes to invoicing. An automated solution makes the invoice process a lot less prone to costly errors.

7. Reduces the risk of miscommunication

Efficiency and productivity are greatly impacted by miscommunication. Think about how much time and money is lost because the wrong message is sent to your accounting team. Because we live in a text-based business world, there’s plenty of room for miscommunication and misunderstanding.

While email has its place in assisting various business operations, an automated invoice tool can minimize the risk of miscommunication. These tools have built-in workflows that can send specific notifications based on the status of an invoice or an action that a user has taken.

Automated notifications make communication much easier and most importantly, clearer.

Conclusion

Manual invoice processing is inefficient, repetitive, and costly. By incorporating an automated invoicing solution for your company, you can save money, time, and improve employee productivity.

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