The process of automated invoice processing systems starts by feeding orders from anywhere in the business into an Optical Character Recognition system. The OCR system recognizes characters from the customer’s receipt and deducts the right amount from a writer’s check or direct deposit. The benefits of AIP include reduced operating costs, reduced credit risk, reduced errors and paperwork, reduced on-site staff/clerical costs, enhanced financial audit trails, better cash management position, and reduced cash handling costs. Few automated invoice processing tools have been designed on the basis of human-readable point-of-sale (POS) systems that include invoicing, accounting, approval, and payment functions.
According to Verified Market Research, the Global Optical Character Recognition (OCR) Systems Market was valued at USD 6,805.00 Million in 2019 and is projected to reach USD 21,466.30 Million by 2027.
- Using Automated Invoice Parsing
- Cloud-Based Invoice Management Systems
- Quick Invoice Search
- Multilingual Invoice Processing
- Pay Early and Get Discount
- Better ROI With e-Payments
- Cost Savings with Increased Accuracy
- Low Processing Costs
Using Automated Invoice Parsing
An automated invoice-parsing program takes an invoice provided by the customer, identifies various repetitive elements in that document–say, header information or numbers that are typed the same way every time–and uses that data to generate a report for the customer’s records. The program can also recognize known patterns in different invoices, log them, and produce custom reports for each customer upon request.
For Instance, RPA is now widely deployed in large enterprises. Amazon now has over 100,000 RPA agents across Amazon Web Services infrastructure. Smaller companies are also actively adopting it as part of their approach to managing business processes. Amazon’s implementation of the technology was to build a machine learning model that would be able to identify different invoice templates and parse them into their individual components without manual intervention. Combining the two elements allowed Amazon to reduce the time required to generate invoices by 97%.
Another example, text and data are extracted from scanned documents using Amazon Textract, a fully managed machine learning service. It recognizes, understands, and extracts data from forms and tables in a way that goes beyond conventional optical character recognition (OCR). Grand View Research says global optical character recognition market size was valued at USD 7.46 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 16.7% from 2021 to 2028
Source : Amazon
Cloud-Based Invoice Management Systems
They are often available as a subscription model for a relatively low monthly or annual fee. Also known as “online invoicing” services, they can automate many of the paper-filing and other tasks involved in maintaining business accounting. In this model, an individual can pay a predetermined, recurring fee through a credit card or other payment methods, and the service will automatically and seamlessly manage and process all of their invoices.
The service can be used in combination with existing credit card payment processing, ERP systems, and traditional invoice management methods. It is possible for cloud-based invoice management to be integrated with ERP systems such as QuickBooks, Microsoft Dynamics, and Sage.
Quick invoice search
It’s an added advantage in automated invoice parsing. An invoice search tool is a program that converts captured data such as invoice number, client name, etc., into a digital file(s) that can be easily accessed and searched. This tool makes it possible for customers and clients to compile relevant information quickly and try to resolve any queries or manage cases. Users can find relevant information about the client and the invoice and also send and retrieve related data.
Using NLP, deep learning, and computer vision, invoice search can be turned into a self-learning system that works very fast, has close to human precision, and will handle millions of invoices per second. This small example shows how our work on machine learning can help make your life easier.
Multilingual Invoice Processing
Automated invoice parsing system supports multiple languages to improve your invoice processing time and the quality of the invoices you receive. Online invoicing systems allow you to provide detailed pre-filled language templates so it will be easier for customers to fill out their data correctly. This will ensure you get accurate information from your clients so you can process their invoices faster.
This uses natural language processing techniques to translate invoices to Spanish, French or German, and then turns them into payments between suppliers and customers. It also handles the payment transactions itself. It integrates with two payment processors to send out payments directly from European banks. The code is open source and is currently running on Raspberry Pi’s using Openbravo’s PDM (payment component) with Plesk (web hosting).
Pay Early and Get Discount
It is always good because exposure puts you in touch with other companies’ transactions. And exposure also allows you to squeeze more value out of other companies’ exposure. You’re giving other companies a way to pay early and to bring their invoices for payment. This saves them time too-and increases profitability.
Example when your competitors pay in a year or more, and then simply ‘forget’ to pay you (or don’t pay you in the time they promised to pay, at all) it becomes not just a hassle; it can also become a liability. More valuable customers may be turned off by the fact that you didn’t invoice them quickly enough. Or because the invoice came late, they might later demand payment up-front. And so on.
Better ROI With e-Payments
If we check on a week-to-week basis the benefits of automated invoicing, e-Payments reduce costs by eliminating the time and expense involved in keeping up with ongoing invoice lists. The idea of automating invoicing via e-Payment is not a new one. Several hundred such systems are currently in operation, particularly in the UK and Japan.
It reduces the amount of paperwork that needs to be processed, as well as the mistakes that occur as a result of human error. Developed to streamline the invoice process, ePayment provides businesses with the ability to automate invoicing tasks, reducing the time and money required for these mundane tasks.
Cost Savings with Increased Accuracy
Automated invoice systems can shorten the time it takes to invoice customers and facilitate a more accurate collection of sales taxes. This system may be used as an alternative to cash, check, and cash-on-delivery (COD). If a company chooses to use this technology, it can reduce costs by eliminating the printing of invoices and sales receipts, which is often done manually. It can also ensure that all money paid through the billing system goes directly to the fund department for disbursement and payroll purposes.
Automated systems also eliminate paper bills or invoices at risk of damage or loss, thus reducing the liability for printing and maintenance. These benefits may be available without having to adopt a fully computerized accounting system.
Low Processing Costs
Automated invoice parsing is becoming very important in the financing world. It’s possible to automate nearly all of an average company’s expenses, then run a report showing how much excess money is available versus running payroll checks. We can cut payroll costs by 40%, for example, without reducing headcount, it can ease your accounting. Parsing of invoices automatically processes a sale with a single click, for any form of an invoice. This saves money and time with a timely transaction. Automated invoicing is a great way to reduce the amount of money lost per year, with enhanced cash flow.
Your company generates lots of invoices. Tens of thousands of them, even. There are many companies that handle related paperwork, networking groups, business-to-business systems, other companies that deal with invoice processing at scale, agencies that assist in collection. Those companies and you would be better off if the work were centralized, standardized, and automated. The purpose of invoice processing is to connect one’s entire business to one’s accounting system by making the financial paperwork automatic.
Visionify is an expert in providing Document Parsing Solutions, it can transform your data into specific documents exactly matching the company’s needs. It adopts various similarity techniques that enable it to reduce the number of documents that are scanned by 90% or more. Its API makes it easy for us to integrate them into our applications. Request a demo today.