6 Reasons Why Your Business Needs an Invoice Management System
Globally, invoices are in the millions. This number will only increase as purchasing becomes more efficient and evolves. According to some estimates, the number of invoices per year will quadruple in the next ten years. An automated invoice management system will greatly benefit any company, regardless of the volume. Let’s now look at six main reasons why your company should have an automated invoice management system.
Invoice Management System Saves Time
An automated invoicing system reduces the time it takes to process an order by cutting down on the number of steps. These steps can be completed in real-time, without the need for human interaction. An automated invoice management system can reduce the time it takes to invoice by 80% according to estimates.
Invoice Management System Saves Money
Invoice management systems not only save time but can also help you save money. If you process large volumes of invoices, switching from print to electronic will help you save significant paper and even reduce your full-time employee (FTE). Employee hours are reduced further by eliminating duplicated and late payments.
Invoice Management Systems Assist Cashflow Management
Automating your invoice process will give you a better understanding of your cash flow short-term and long-term. You can plan your next move or expansion much easier if you have accurate, real-time data about your cash flow. This will allow you to plan for growth in many areas. You can look for ways to improve efficiency with your cash flows by having better information.
Improved Efficiency and Accuracy
Even the most skilled people can make mistakes. No matter how skilled your top employees are, they may have other responsibilities that could push invoicing down the queue. Eliminating the human element reduces errors and speeds up the process. This process is efficient because everything can be processed in real time with automated approvals and generation. Even the most remote exceptions can be automated with a well-designed system. The system also includes checks to improve accuracy.
Automating invoices allow for automated compliance
When you want to ensure that your compliance with tax and financial regulations is maintained, your invoices are crucial. The auditor will need to know what you bought, how much and when. An invoice management system makes it much easier to keep track of invoices than paper-based ones. Invoice management systems make compliance easy by making it simple for auditors to access the information they require. All aspects of the transaction are tracked with real-time updates.
Dashboard Management offers many improvements
An invoice management system that is worth its salt will offer an intuitive and simple dashboard for accessing all invoicing data. This dashboard provides instant, real-time information about what has been paid and outstanding. It also offers to report on these aspects. An invoice management system that integrates with your accounting software will allow you to accept credit cards and make online payments. This will further simplify and automate your business processes.