Supplier’s Invoices Processing Overview
Increasing workplace efficiency is an advantage that process digitization has brought to each organization. But organizations are still facing challenges. One of these is the large amount of documents that need to be processed manually, generally invoices, but not only.
Studies show that approximately 90% of the invoices received by both medium and large size companies is either paper or #PDF format, # scanned image (JPEG, TIFF, etc.), and only 10% of invoices are in one of the electronic formats (#EDI or # XML) or extracted directly from portals.
How do organizations handle 90% of their bills? Is it efficient how they process them, can more effective ways to be found?
How company enter invoice data
75% of companies manually resolve these operations:
- paper invoices are are handled and entered into accounting systems manually
- emailed invoices from suppliers are printed out and manually entered into accounting systems
What do the other 25% of companies do?
They use Automate Invoice Processing solutions. These are automatic document processing solutions tailored for invoices. They recognize the fields within a invoice and convert them into a structured format (database, Excel, XML, Json, etc.).
These companies are becoming more efficient and can control their costs much better than those that manually solve this process.
Invoice Automation Solutions Comparison
|Invoice Format||Time to Set Up||Infrastructure Changes||Cost||Data Accuracy||Notes|
|Paper||Short||None||Low||Medium – High|
|Paper/PDF/Electronic||Short||None||Low||Medium – High||Most Automatic Invoice Processing solutions accept scanned paper or PDF / Electronic documents|
|Portal||Short||Many||Medium||Low||Recommended for big buyers. The solution is expensive for suppliers.|