Invoice Management and Bill Processing

Invoice management software refers to specialized solutions designed to streamline invoice handling within an organization. These tools automate various aspects of the manual processes that use paper invoices.

Key components of invoice management software include:

• Invoice capture with Optical Character Recognition (OCR)
• Data extraction with validation rules
• Workflow automation with approval routing hierarchies
• Duplicate detection and two and three-way PO-matching
• Vendor management with communication tools
• Global payment processing with FX capabilities
• In-depth analysis and custom reporting

The best invoice automation software also integrates with your enterprise resource planning (EPR) system and other billing software platforms.

Companies that automate invoice processing receive up to an 80% reduction in a company’s procure-to-pay lifecycle. Additional benefits include:

• Cuts down on error rates. Less manual entry means less room for mistakes. 
• Speeds up the approval process and reduces processing times. Especially for vendors with recurring invoices. 
• Saves on labor costs. Staff can work on more business-critical tasks.
• Reduces duplicate invoices and payments.
• Improves relationships. Employees are liberated from tedious tasks, and vendors have a more transparent process.
• Slashes the costs of manually processing invoices (postage, paper, etc).
• It helps to secure early-payment discounts and avoid making late payments. 

Automated invoice processing allows you to assign a GL code without direct access to a company’s accounting platform.

Invoice management software will automate the accounts payable process and reduce manual data entry in various ways. Here’s a detailed look at how:

Streamlines Invoice Intake
OCR technology scans professional invoices (whether paper or online invoice) to extract text and convert it into editable and searchable data, eliminating the need for manual entry.

Advanced artificial intelligence (AI) and machine learning (ML) algorithms interpret and extract the relevant data needed for invoice processing, like dates, line items, amounts, and vendor details.

Accelerates the Approval Process
Invoices can be automatically routed to the right approvers based on predefined rules, such as department, vendor, and amount. This ensures prompt review and approval without manual intervention.

Invoice management software will also allow you to send automated notifications and reminders to approvers, reducing delays and ensuring invoices are processed in a set time.

Automates PO Matching
Typical invoice management systems automatically match invoices with purchase orders and documents like delivery receipts or inspection reports. This ensures the details align, reducing the need for manual verification.

Schedules and Processes Payments
The best invoice management platforms will enable everyone, from small businesses to enterprises, to automatically schedule and process payments. These platforms are based on predefined terms, ensuring timely transactions and faster processing.

Software for invoice management will also support a variety of payment methods, from Automated Clearing House (ACH) to bank wires, virtual credit cards, and more. It should be able to manage multiple currencies and offer pricing unaffected by conversions.

Simplifies Vendor Management
Vendors can directly submit invoices via a self-service portal, where the data is automatically captured and processed. This enables easy invoice tracking, reducing queries about payments and the need for manual entry.

Additional Automation Features

• AI-powered duplicate detection to prevent overpayments
• ERP integrations with Application Programming Interface (API)
• Comprehensive reporting and analytics on invoice status and performance metrics

Tracking invoices is critical for maintaining financial accuracy, ensuring timely payments, and managing healthy cash flow. Here are a few best practices for effective invoice tracking:

1. Implement automated invoice management: Use dedicated software to automate tasks like data capture, invoice and payment processing, and reporting.
2. ERP integration: Implement the software with your ERP or other accounting systems to streamline data flow.
3. Centralize data storage: Store all documents in a centralized digital repository that ensures easy access and retrieval. Consider cloud-based solutions for remote access. 
4. Standardize invoice processing: Establish consistent workflows and templates for invoice receipt, approval, and payment. This includes defining the roles and responsibilities for each step.
5. Reminders and Alerts: Set up automated reminders and alerts for upcoming due dates, pending approvals, and overdue payments.
6. Regularly reconcile: Reconcile invoices with financial records to ensure accuracy and identify discrepancies. Conduct periodic internal audits to track every last invoice.
7. Utilize dashboards: Centralized dashboards can provide a real-time overview of invoice statuses, pending approvals, and payment timelines.
8. Self-service supplier portal: Provide a portal where suppliers and vendors can submit invoices, track payment status, and resolve queries independently. 
9. Implement strong controls: Ensure all invoice data is protected and encrypted both in transit and at rest. Ensure only authorized people can view and process invoices.

Leverage mobility: Use mobile apps to empower teams to review, approve, and manage invoices remotely— ensuring flexibility and prompt responsiveness.

E-invoicing (short for electronic invoicing) refers to the process of issuing, receiving, and processing digital invoices, rather than using paper-based methods. 

In an e-invoicing system, invoices are processed in a structured electronic format and exchanged between suppliers and buyers through an automated system.

Key features of e-invoicing include:

• E-invoices are typically generated in formats like XML, EDI, or UBL
• Instead of an email or printed invoice, an e-invoice is transmitted directly between systems
• Compliance is another feature since many governments around the world now mandate e-invoicing for tax reporting

E-invoicing is fast and efficient. It reduces costs, increases accuracy, and has less of an environmental impact. It’s used not only in various sectors of the government, but also in retail, manufacturing, and finance. 

For companies looking to digitize processes, e-invoicing is an important step toward automating accounts payable.

Key features of an automated invoice management process include:

1. Invoice capture: The automated capture of invoices from various channels, like emails, scanned documents, and supplier portals.
2. Data extraction: Optical Character Recognition (OCR) extracts data from invoices, eliminating time-consuming manual data entry.
3. Workflow automation: Setting up automated approval workflows, notifying key stakeholders, and ensuring compliance with company policies.
4. Key integrations: Seamless integration with accounting software, enterprise resource planning (ERP) systems, and payment gateways to facilitate a smooth data flow.
5. Reporting and analytics: Generating detailed reports with customizable dashboards and key metrics for monitoring.

Additional features of invoice management software also include security, regulatory compliance, mobile accessibility, scalability, and customizable solutions.

Yes, Tipalti can capture both header and line-level invoice details. The system utilizes Tipalti AI Smart Scan, allowing it to extract detailed information from invoices, including both header and line items. 

Header and line-level invoice data capture significantly reduces the time and effort needed for manual data entry, enhancing the efficiency and accuracy of the accounts payable process​  

By capturing line-level details, Tipalti ensures more granular and precise invoice management. This capability supports detailed financial reporting and enables more accurate and streamlined approval workflows, benefiting complex business needs all over the globe.

Tipalti’s AI Smart Scan technology reads invoices in 32 different languages. This feature enables the system to capture and process both header and line-level details across multiple languages, making it highly adaptable for global payment processing.

No, you do not have to log into Tipalti to approve invoices. Tipalti also provides email-based approvals. This allows approvers to review and approve invoices directly from their email without logging into the Tipalti platform, enhancing convenience and accelerating the approval process.

Tipalti does not charge additional fees for invoice approvers. The approval process is included in their accounts payable automation software, which offers features such as automated invoice data capture, OCR scanning, and approval workflow routing. 

Our solution allows approvers to review and approve invoices via email or mobile devices without needing to log into the system, thereby streamlining the entire process without incurring extra costs​.