Enterprise growth in function and value always results in an increase in the procurement of products and services, leading to more invoices. Efficient management of invoices is a critical function that impacts the revenue collection and profitability of a business. Manual collection and billing of data are paper-intensive, time-consuming, and expensive with a high error rate. From non-standard formats to incorrect invoice details, tedious approval processes and lost invoices, the challenges of manual process are numerous. Incorporating the next level of intelligent solution is essential as an automated invoice can move through a workflow faster.
According to a report by the Institute of Finance and Management, the average cost of processing an invoice in a growing organization with fewer than 20,000 invoices per year is around $15.97 without automation. For an organization that handles around 100,000 invoices per year, the average cost to process an invoice is $6.10. Automation reduces this number significantly to around $12.98 and $4.24, respectively.
Several organizations are increasingly gearing toward digital processes to manage invoices. Although digitization is beneficial in extracting data and making digital payments, the invoicing process continues to depend largely on manual labor. Automating invoice processing in addition to digitization can significantly enhance operational efficiency and save valuable time for businesses. Digital invoice automation extracts invoice data and seamlessly integrates it with the accounts payable system. This can pave the way for the streamlined handling of supplier invoices using artificial intelligence, machine learning, and natural language processing.
Automated invoice processing enables businesses to dispatch invoices across the globe in different layouts and languages, without delay. It significantly minimizes error rates and saves on expenses related to labor and invoice processing. The scalability of cloud-based data capture solutions helps enterprises to save storage space, keep track of each invoice, and share the information quickly when required. Automation of invoice processing also supports businesses in avoiding duplication of invoices and payments. Teams can therefore spend less time on invoice processing and focus on value-generating tasks.
The necessity to lower the accounts payable costs per invoice can appear daunting for businesses, especially in uncertain times with a massive volume of invoices and limited on-site staff. Invoice processing can be easily managed by opting for the best invoice automation software while ensuring significant cost reduction and real-time processing. An improved accounts payable solution increases visibility, saves valuable time, and provides long-term business benefits. It also empowers the accounts payable department and adds significant value to the business by critically ensuring its competitiveness.
Magic Invoice addresses the challenges of invoice process management. It is an API-first and cloud-first intelligent solution to comprehensively automate manual data entry processes prone to errors. The solution is built on a highly scalable microservices-based architecture that significantly improves the invoice processing time, speed and costing. It includes more than 28 AI models for pre-processing the input for quality reviews and enhancements, ensuring high levels of accuracy even in the initial stages of processing. The automation technology of Magic Invoice eliminates payment errors and late payments. It incorporates cognitive data capture solution to process invoices, enabling organizations to successfully deploy no-touch process automation for invoice or accounts payable processing.
In addition to automatically detecting and classifying documents based on their type, Magic Invoice has the capability to process multiple page line items across structured and unstructured tables. Through intelligent document processing using artificial intelligence and machine learning, it captures and ingests relevant invoice data from single and multi-page documents through multi-channel input sources and wide variations through an intuitive drag and drop, email listening, SFTP folders, and hot folders. It also has the ability to validate missing data and verify the captured data with purchase data using three-way matching. Magic Invoice includes an invoice approval setup with a configurable approval hierarchy. Using API integration, it can seamlessly combine with the downstream consuming system.
Interested in learning more and wondering if Magic Invoice is the right fit for your business?