If you have a business that needs to handle supplier invoices, then you know how much of a pain it can be. However, there are many ways to make the invoicing process simpler and easier. One option is to use invoice capture software, which allows businesses to automate this process and ensure that all expenses meet their spending policy.
But what exactly is invoice capture software? How does it work? And why should your business take advantage of it? In this guide, we'll answer these questions and more so that you can start realising the benefits of incorporating this technology into your business.
What is Invoice Capture Software?
Invoice capture software, or ICS, is a piece of accounting software that allows you to stay on top of and manage your supplier invoicing.
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Capturing and processing invoice data is a critical function of any company's Accounts Payable department. The goal of ICS is to make sure you’re tracking your supplier invoices in real-time. This allows you to pay suppliers in a timely manner, approve the expenses, and stay organised with an easy-to-use dashboard.
How Does Invoice Capture Software Work?
There are two main stages when using an invoice capture tool: scanning and validation.
The first step is when an image of the invoice is captured by the scanner and sent directly into your system. The software then automatically extracts key data from the invoice, such as the amount, invoice number, supplier name, and more.
Next comes validation, where the document is verified against established criteria so that only approved documents are processed further in your systems.
The whole process is pretty straightforward, therefore, it's easy to see why so many businesses are moving towards using invoice capture software. Not only does it save time, but it also streamlines the whole process of approving invoices. This makes sure that everything runs smoothly without any hiccups along the way.
One of the best things about invoice capturing software is that it can integrate seamlessly with other applications, such as expense management, accounting, and payroll. This means that you don't have to worry about spending time configuring your software in order to track invoices through an integrated platform.
6 Reasons Why Your Business Needs Invoice Capturing Software
Invoice capture software can help to streamline your supplier invoicing process in a number of ways. We’ve outlined the top 6 benefits below.
Six reasons your business needs invoice capture software includes:
Better data entry and accuracy
Faster invoice processing
Improved spend visibility and analytics
Enhanced compliance and security
Reduced accounts payable storage cost
Improved supplier relationships
Insight into those six benefits can be found below.
1. Better data entry and accuracy
As you already know, it’s easy to make mistakes when manually entering invoice data into your accounting system. This software eliminates the need for manual entry and reduces the risk of errors occurring during this process.
2. Faster invoice processing
Invoice capture software makes it easy to approve and process invoices. You can create, modify, and track your invoices from the same platform, which saves you time and effort.
The process of automatic invoice processing is streamlined with this software, eliminating the need to manually enter data into your accounting system. It also allows your finance team to focus their attention on other tasks while this automated task completes itself in the background. This frees up more time for other important things, like growing the business.
3. Improved spend visibility and analytics
With invoice capturing software, you can obtain all your invoices and have them stored in one place. This means you have a clear picture of what's being spent, as well as where, when, and by whom.
By seeing how much money is being spent on your business (such as through the products or services being paid for), this also gives you greater insight into how money is allocated across different areas of your company. In turn, this can help to improve decisions about budgeting and supplier spending in the future.
4. Enhanced compliance and security
A solid invoicing solution should provide enhanced compliance and security. It will keep your data safe and secure, while also ensuring that you have a complete history of all invoices received. This can help you avoid any issues with unpaid invoices, as well as ensure the accuracy of your accounting records.
5. Reduced accounts payable storage costs
The benefits of invoice capture software go beyond the obvious ones. Once you’ve implemented it, you’ll be able to reduce storage costs by storing documents digitally, rather than physically on your premises.
This means you won’t have to worry about cramming boxes and filing cabinets full of paper documents. The software will also cut down on the amount of manual work that your staff need to do in order to process invoices and payments.
6. Improved supplier relationships
With paperless invoice approval system, you can easily track your company's payment history and see which suppliers have been paid on time. This is a great way to build trust with your suppliers and ensure that they will always be willing to work with you.
The invoice capture software also improves supplier relationships by providing real-time updates about upcoming payments and reducing unnecessary back and forth for payment updates.
Need an Automatic Invoice Capturing Solution? ExpenseIn Can Help
Invoice capture software is a valuable tool that can help you save time, money, and energy regarding your supplier invoices. It’s important to choose the right solution for your business, but it doesn’t have to be complicated.
ExpenseIn lets you automatically capture, process, and approve supplier invoices from anywhere, at any time. With features such as real-time scanning, advanced approval, purchase requests, supplier policies, smart reporting, and categorisation and coding, you can get on top of your supplier invoices once and for all.
