September 23, 2022

What is Touchless Invoice Processing?

Modern business owners know that manually processing paper invoices via the accounts payable process results in significant waste. Your business will lose money if there is too much human engagement with the manual process of invoices. For each step in an invoice's manual processing, your accounts payable staff may need a half-day or more resources. It could take several weeks for an invoice to be paid in full during busy times. The chance of your invoices being lost, misfiled and then moved for payment or when required for yearly regulatory audits increases if you manually manage your invoices. In the end, manual invoice processing leads to more waste, slower invoice approval, and more extraordinary processing expenses per invoice.

Introduction:

For various organizations, processing payments is a chaotic procedure because invoices can be in any format, including paper invoices, PDFs, scanned PDFs, emails, etc. Seasonal variations in the volumes cause particularly busy peaks for financial staff. During these instances, manually entering data to record invoices into systems might result in problems like missing papers and tally discrepancies.

You have probably heard the term "touchless invoice" used casually, as though everyone is familiar with what it refers to. Every vendor claims it; however, not every solution is meant by what they mean. 

Using technology, touchless invoice processing replaces paper invoices. It is a method of providing automated solutions that result in significant cost savings and ROI. It aids in removing human mistakes, which frequently causes the purchase order not to match. Eventually aids in streamlining corporate procedures for effective operation. The manual input requirements, often part of automated processing, are removed with touchless invoice processing

When you use touchless invoice processing, all invoices are converted to digital format and processed without needing manual input or passing any paper. The advantage of touchless invoice processing is that every invoice is digitalized, routed, matched, approved, and finally processed without requiring manual input or the movement of a single piece of paper. Here are some convincing and cost-justifying arguments for why invoice automation is essential: 

  • It aids in generating significant savings and ROI. 
  • It facilitates sending supplier bills to the appropriate approvers. 
  • Avoid late fines because of poor processing times. 
  • Process invoices without using any manual labor 
  • automated method for comparing invoices to receipts and purchase orders 
  • Get rid of paper bills

How is  "Touchless Invoice" defined at VisionERA?

When we refer to a "touchless invoice" at VisionERA, we imply that when an invoice is delivered to your business: 

  1. From the invoice, the invoice data is automatically retrieved and mapped into VisionERA Automation; 
  2. Automatic matching of invoices, goods receipts, and any other necessary matching points; 
  3. Bills are automatically forwarded to the appropriate person or persons for evaluation and approval

How Does the Processing of Touchless Invoices Work? 

There is a two- or three-way match when you invest in the infrastructure for the touchless invoice procedure. The transactions are evaluated on parameters like the total, Vendor ID, and Invoice Date. Acceptable levels are established so that any variations may be compared to them, and if additional processing is necessary, invoices can then be routed appropriately. 

Additionally, statistics and data on the process are provided so that it can be improved upon and altered as necessary. Instead of doing time-consuming, repetitive manual labor, this will assist you in acquiring an accurate analysis of the financial data. These automated processes collect the data needed for critical organizational decision-making.

Touchless Invoice Processing can be Linked with Accounts Payable Information in the following manner:

  1. A touchless invoice procedure will result in fewer misplaced supplier invoices, more precise data collection, shorter search times, and less manual paper movement around the office and email creation. Accounts payable can become much more efficient with touchless invoice processing.

  1. Less mistakes means better expenditure forecasting, which might help your company expand more quickly. Touchless invoices are also processed via the internal review process more rapidly, enabling quicker payments and preventing late payments. Faster invoice payment increases your chance of receiving early-payment discounts from suppliers, which boosts your cash flow. 

  1. Missing bills, poor recordkeeping, and irate auditors are no longer a source of agony thanks to touchless invoice processing. By strengthening ties with your suppliers and allocating your surplus cash flow to new ventures that will hasten the expansion of your company, you will maintain the competitiveness of your enterprise. 

The bottom line is that quicker invoice processing increases the effectiveness of your accounts payable department, increasing the overall profitability of your business. The manual invoice processing is extremely tedious. Lets see in brief what are the steps involved in it.

Steps for Processing Manual Invoices: 

When all steps of the procedure are carried out manually, from receiving an invoice to the payment clearance, the process is referred to as manual invoice processing. 

  1. Receiving an invoice from the vendor is the first step. Depending on the terms of the contract, an invoice may be provided before or following the delivery of goods or services. After that, data is manually entered into the accounting system by the accounting team. 

  1. The second stage, unique to purchase order invoices, is to process the invoice concerning tolerances. For pre-defined tolerances, the received invoice is processed using 2-way, 3-way, or 4-way match processing methods against the purchase order.

  1. Safeguard the invoice copy in the file system - The invoice is scanned and safeguarded in the filing system after data entry into the accounting system and processed against tolerances. Physical copies of invoices are frequently stored safely as well. 

  1. Invoice is submitted for approval - Depending on the size and organization of a company, the invoice is sent for permission for payment. In small businesses, one or two people may have the authority and responsibility to authorize invoices for payment, but a major business and enterprise team is in charge of this task. 

  1. The payment is made after the invoice has been accepted in step five. 

This procedure is labor-intensive and requires much manual labor, yet it is not error-free. Extracting information from an invoice, validating it, and securing it in the accounting system are all made more straightforward by automated invoice processing. In addition to lowering costs by decreasing human labor, it is more effective and precise than manual invoice processing.

Let's discuss how it is different from automated invoice processing. Data extraction from invoices is the first step. Although there are differences in the layout, structure, and fields of invoices, an automated invoice capture tool can automatically add invoice data from both paper invoices and electronic invoices sent via Electronic Data Interchange thanks to Intelligent OCR and machine learning technology. 

Step 1: Data entry and invoice coding Data entry and invoice coding are accomplished through Intelligent Data Capture mechanisms that locate and extract data for processing into your invoice management system. Depending on the capability of your software, this step may or may not require the involvement of your AP professional. 

Step 2: Verify the Extracted Information - The invoice processing software verifies the recorded data in accordance with pre-established validation standards after data extraction and invoice coding. It is sent for manual verification if it doesn't adhere to the established standard or if any anomalies are discovered. 

Procedure 3: The invoice is forwarded for approval. This is also a time-consuming step because it calls for intricate logical reasoning and continuous follow-up. The management of alerts, follow-ups, and work assignments for approval are often handled at this phase using the enterprise resource planning and enterprise content management systems. 

Step 4: Make the payment - Following the approval, the payment is finally made. 

VisionERA Comes to the Rescue

Document processing workflows that rely on humans and paper are inefficient and time-consuming. It’s labor intensive (data entering, for example) and prone to mistakes. VisionERA’s completely integrated touchless invoicing is a boon to businesses that rely on laborious, error-prone paper document procedures. Businesses may utilize advanced machine learning that assists in the tracking of departing papers in conjunction with hidden insights, trends, and templates to automatically improve their document operations. The idea behind VisionERA’s touchless invoice processing is seamless document processing to aid organizations in achieving their desired goals with the help of its cutting edge technology of machine learning and OCR technologies. 

VisionERA’s retraining and retrieval of unstructured content are both aided by a feedback-driven, reinforcement-learning mechanism. The Feedback files obtained by them may be sampled more effectively with the help of a recommendation engine, which allows us to select a representative subset of error messages. It also helps in reducing Cognitive Overload with efficient feedback file bucketization.

VisionERA, which was created by experts to ensure precise data extraction while  minimizing human efforts, can aid businesses of all kinds streamline their document-heavy processes with the click of a button. 

Schedule a trial with us right now to get quicker, more consistent outcomes with more affordable processes. 

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