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Automated invoice processing offers more than financial gain

Modernize invoice processing with a digital solution

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Manual invoicing is costly, and it kills productivity

Processing paper-based invoices with traditional manual methods takes a toll on company resources as it’s time-consuming, tedious, and vulnerable to human error. For each invoice, an HR or financial department team member must go through an arduous process that involves entering data into an accounting system, reconciling invoices with purchase orders, and possibly requesting management approval.

Even the most detail-oriented employees can get sidetracked, forgetting to authorize a manual payment the day it’s due. When paid even one day late, the company can incur penalties and damage its reputation with suppliers and customers. Many of the problems that are inherent with manual invoicing can be avoided by shifting to automated invoice processing.

With more countries such as the UAE shifting to paperless environments, and other countries in the Middle East now introducing VAT (value-added tax) policies, electronic invoices will yield government as well as internal compliance benefits.

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The cost-saving advantages of electronic invoicing

Manually inputting data is time-intensive and invites risk due to human error. A misplaced decimal point can cost thousands. Electronic invoice processing eliminates mistakes, improving data accuracy while allowing employees to edit info manually if needed. Administrative costs will be reduced as the time for issuing and processing e-invoices is much lower than with paper invoices.

Constantly printing and mailing paper invoices is another unnecessary cost on top of the additional storage space required to file the documents, many of which need to be maintained for five years or more. E-invoices are automatically archived and easily searchable, giving companies instant visibility into supplier or customer history and, in case of an audit, documents are readily available.

With administrative tasks reduced, employees can allocate their time to more profitable tasks that help the business move forward.

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Qualitative benefits of automated invoice processing

With automated invoice processing and payments underway, companies will see benefits that extend past the financial advantages such as an improvement in internal controls. Without the need for paper-based checks, businesses can eliminate the possibility of lost, stolen, or fraudulently written checks. HR can set or limit the access of employees which offers more control and accountability.

When payments are consistently made on time, businesses should see an improvement in their relationships with suppliers and partners. Cashflow visibility will also be enhanced, enabling companies to take advantage of early payment discounts. Plus, a shorter order-to-pay cycle for buyers and a reduced order-to-cash cycle for suppliers is a win for all sides.

A reduction in printing and postage costs also creates a lower carbon footprint, making the company eco-friendly and contributing to corporate responsibility initiatives.

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Invoice processing with Canon technology

Getting executives on board can be a challenge as they are often concerned about costs, productivity time that’s lost due to software training, and the fear of changing processes. Once they understand how an end-to-end tech solution can streamline and optimize processes, concerns can be reduced if not completely squashed.

Invoice processing software can receive multi-format digital invoices and scan paper invoices from other companies. All invoice data is automatically captured, extracted, and input in the system. If warranted, information can be double-checked and payments validated before receiving approval.

Invoices are securely archived, and payments can be controlled according to the invoice terms and company cash flow. Canon’s solution also enables reports, so managers have access to financial information.

With the ability to cut costs, boost efficiency, improve cash flow visibility, and strengthen company compliance, switching to automated invoice processing is a smart decision.

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