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Automated Invoice Processing

Automation Steps, Capabilities, Costs, ROI

ScienceSoft applies 16 years of experience in corporate financial software development and practical knowledge of 30+ industries to help businesses implement effective invoice processing automation.

Automated Invoice Processing Software Overview - ScienceSoft
Automated Invoice Processing Software Overview - ScienceSoft

Invoice Processing Automation in a Nutshell

Invoice processing automation streamlines invoice processing end-to-end – from invoice data capture and validation to invoice approval and routing for payment and invoice posting to the general ledger (GL). Automated invoice processing systems are especially helpful for large companies that need to process a considerable number of paper and digital invoices.


Automation timelines

Implementation costs

Annual ROI

A payback period

Main Invoice Processing Tasks to Automate

Invoice capture and validation

Rely on AI, OCR, and RPA technologies to get 95% faster and more accurate invoice data capture, extraction, and validation with no manual efforts.

Invoice approval

Benefit from 80%+ faster invoice approval with an automated multi-department approval workflow and seamless 24/7 remote access for the approval teams.

Invoice analytics

Employ ML to precisely forecast invoice amounts and inform budgeting. Get AI-based advice on the optimal invoice payment dates to capture vendor discounts.

Invoice processing stats that may surprise you

  • 70% of businesses already have their invoice processing workflows partially automated. Still, over 45% of companies route invoices for approval manually.
  • Only half of invoices are received digitally; the rest are traditional paper invoices and checks. Due to an error-prone physical delivery, around 10% of customers never receive their invoices.
  • About 4% invoices contain errors, which translates into substantial fixing efforts in case of manual processing.
  • 25% of companies miss favorable payment terms and discounts due to delayed invoice processing.

Ways to Set Up Automated Invoice Processing

There are three main approaches to automating invoice processing, each having its benefits and limitations. Below, ScienceSoft provides a high-level comparison of the three. Within our financial software consulting service, we help define the more feasible option for your needs.

Off-the-shelf invoice management tool

Platform-based invoice processing software

Custom invoice processing system

ScienceSoft recommends


Implementing market-available A/P invoice management software, which typically enables automated invoice capture and validation and provides invoice tracking dashboards.

Building an automated invoice processing solution of moderate complexity based on a low-code platform, e.g., Microsoft Power Apps.

Building custom automated invoice processing software to get all necessary functional and non-functional capabilities and digitally transform your complex invoice processing flows.


  • A fast way to leverage automated invoice processing.
  • Minimized upfront investments.

  • Quick automation of invoice processing flows.
  • Up to 75% lower investments, compared to custom development.

  • No functional limits; can cover features that go beyond a typical scope, e.g., automated invoice payment
  • UX and UI design fully tailored to your needs.
  • No scalability restrictions.
  • Minimized operational, security, and compliance risks.
  • Smooth integration with all required systems.
  • The lowest TCO in the long run.

  • Pre-defined features, integrations, and processing flows. Chances to obtain a large share of unnecessary functionality.
  • Costly or even impossible solution customization to your needs.
  • Security fully depends on the vendor’s cybersecurity practices.
  • High subscription cost.

  • Limited customization capabilities in terms of functionality and UX/UI design.
  • Hard to scale.
  • Integration with custom solutions and legacy systems may be complex or impossible.
  • Compliance with region- and industry-specific frameworks may be complicated. 

  • Custom design requires additional time.
  • Higher upfront investments, compared to other approaches.

Invoice Processing Automation Software: Key Features

Each automated invoice processing solution ScienceSoft creates has unique functionality to serve client-specific needs. Here, we have outlined the features commonly requested by our customers:

Automated invoice capture

  • Support of various digital invoice formats (XML, PDF, digital images, e-invoices, etc.).
  • Support of multi-table invoices, multi-currency invoices, multi-page invoices.
  • OCR-enabled conversion of paper invoices into a pre-defined digital format.
  • Automated invoice scanning and capture of numeric and textual invoice content.
  • ML-powered data extraction from digital invoices.

Automated invoice validation

  • Automated invoice coding in the general ledger (GL).
  • Automated two- and three-way vendor invoice matching (against purchase orders, supplier contracts, goods/service receipts, etc.).
  • User-defined thresholds for invoice matching tolerance.
  • Rule-based validation of invoice data at the line-item level (invoice number, date, quantity, price, etc.).
  • Invoice verification against the pre-set tax rules, region-specific e-invoicing compliance requirements.
  • Alerts on invoice exceptions (missed, mismatched or inaccurate data, duplicate invoices, tax variances, etc.) that require manual validation.

Invoice approval automation

  • Automated invoice routing for approval.
  • Configurable multi-department invoice approval hierarchies (based on invoice amount, invoice type, location, etc.).
  • Scheduled email reminders to invoice approvers.
  • A complete invoice approval history.
  • Automated routing of approved invoices for payment.

Invoice tracking and storing

  • Real-time multi-department invoice tracking by validation and approval status, type (PO, non-PO), supplier, period, and more.
  • Automated invoice routing for centralized storage.
  • Configurable invoice retention and deletion rules.

Invoice processing analytics

  • Calculating and tracking essential invoice processing metrics, such as total amount of invoices processed by period, average invoice approval cycle time, total amount of lost cash discounts due to delayed invoice submission for payment, and more.
  • Trend analysis to forecast non-PO invoice amounts.
  • Scheduled and ad-hoc reports on invoice processing KPIs.

Invoice processing security

  • Invoice timestamping.
  • E-signing for approved invoices.
  • Comprehensive audit trail for invoice-related activities.
  • Rule-based and AI-powered detection of digital invoicing fraud.
  • Multi-factor user authentication.
  • Role-based access control.

Leverage End-to-End Invoice Processing Automation

ScienceSoft’s team is ready to plan, build and support a reliable invoice processing system to automate time-consuming and error-prone invoice processing tasks.

A Sample Interface of Automated Invoice Processing Solutions We Create

Converting scanned invoices into a user-defined digital format

Data extraction from digital invoices

Configuring the invoice validation rules

Invoice reconciliation

Invoice approval

E-signing for approved invoices

Audit trail for invoice-related activities

Invoice tracking by user-defined parameters

Analytical dashboards on invoice processing KPIs

Main Integrations for the Automated Invoice Processing System

To maximize the efficiency and accuracy of invoice processing workflows, ScienceSoft suggests integrating your solution for invoice management automation with the following back-office systems:

Key integrations for the automated invoice processing system - ScienceSoft

  • Accounting software – for accurate invoice data recording in the accounts payable and the general ledger.
  • Procurement software – for automated invoice matching with purchase orders generated in procurement software.
  • ERP – for automated purchase invoice validation against goods/service delivery receipts.
  • Vendor portal – for faster processing of vendor/supplier invoices uploaded from a vendor portal.
  • Cash management system – for automated payment of invoices.
  • BI solution – for comprehensive invoice data and invoice processing analysis and reporting.

Success Factors for Invoice Processing Automation

ScienceSoft’s experts recommend that the following important factors should be covered to maximize the benefits of automated invoice processing:

OCR capabilities

to capture and extract relevant data from paper invoices.

Mobile access

to enable invoice tracking and approval on the go.

AI-powered invoice prioritization

for approval and payment to get more favorable payment terms (e.g., discounts for early payments) and maximize cost savings.

Cloud deployment

to get scalable centralized storage for digital invoices and enable 24/7 remote employee access for fast invoice approval.

ScienceSoft’s Senior Business Analyst and Financial and Banking IT Consultant

Make sure your automated invoice management solution provides compliance with GAAP, IFRS, SOX, GDPR (for the EU), ZATCA requirements (for Saudi Arabia), and other legal frameworks relevant for your case to ensure invoice generation and processing in accordance with the latest regulatory standards.

How to Automate Invoice Processing

Below, ScienceSoft outlines key steps to introduce invoice processing automation:

  1. Analyze business needs and elicit requirements for invoice processing digitalization.
  2. Design the functionality, architecture, and tech stack for the automated invoice processing system.
  3. Plan the project (define deliverables, scope of work, duration, budget, and team composition).
  4. Develop custom invoice processing software.
  5. Conduct quality assurance.
  6. Migrate invoice data from spreadsheets or a previously used invoice management tool.
  7. Establish integrations with the necessary systems.
  8. Train employees on applying invoice process automation in their daily tasks.
  9. Provide continuous support and evolve the solution (optional).

Featured Success Stories by ScienceSoft

ScienceSoft’s Tech Stack for Invoicing Automation 

Implementation Costs for Automated Invoice Processing

Pricing Information

Based on ScienceSoft's experience, developing a custom invoice processing automation system may cost around $140,000–$400,000, depending on solution complexity.

Want to know the cost to implement automated invoicing?

Get a free estimate

Benefits of Invoice Processing Automation

Annual ROI for a custom automated invoice processing system may reach up to 460%. An average payback period for such a solution is about 6 months.

Cost reduction

Complete automation of invoice capture, validation, approval, and payment tasks brings an up to 90% reduction in invoice processing costs due to eliminated employee efforts.

Higher employee efficiency

By automating the invoice processing flow, you free your AP specialists from low-value manual routine, which translates into an up to 4x increase in the team’s productivity.

Faster invoice-to-pay cycle

Automation cuts the time to process an invoice from 45 days to less than 5 days and makes particular invoice-associated operations up to 12x faster.

Early payment discounts

AI-powered suggestions on the optimal invoice payment sequence help prevent payment delays and get vendor discounts, which brings 1–3% cost savings for large enterprises.

Improved accuracy

Invoice processing automation eliminates human error across the invoice reconciliation and payment planning tasks, leading to minimized invoice and payment discrepancies.

Simplified compliance

With automated invoice processing, you can easily validate invoices and processing flows against the necessary legal standards. It helps better prepare for financial audits and prevent compliance gaps.

Invoice Processing Automation with ScienceSoft

In financial software development since 2007, ScienceSoft provides all-round services to help companies implement reliable invoice processing automation.

Invoice processing automation: consulting

  • Analysis of your invoice automation needs.
  • Assessment of the existing invoice management processes, tools, and their integration points.
  • Suggesting the optimal smart invoicing features, solution architecture, and tech stack.
  • Preparing a plan of integrations with the required systems.
  • An implementation plan, cost & time estimates, expected ROI calculation.
Go for consulting

Invoice processing automation: implementation

  • Automated invoice processing solution conceptualization.
  • Architecture design.
  • Development of the invoice processing automation system.
  • Integrating the solution with relevant software.
  • Quality assurance.
  • User training.
  • Continuous support and evolution (if required).
Go for implementation

We cooperated with ScienceSoft on the evolution of our Azure-based product for accounts payable management. ScienceSoft was to cover end-to-end development of an intelligent paperless invoice processing module for the product.

The new software module performs stably even under heavy load, which helps provide a high-quality user experience for our customers. ScienceSoft proved to be a reliable tech partner, and we can recommend other businesses to consider ScienceSoft as a software development vendor.

Wadih Pazos, Chief Operating Officer, Paramount WorkPlace

About ScienceSoft

ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. Since 2007, we help businesses implement effective invoice workflow automation. Being ISO 9001- and ISO 27001-certified, we apply a mature quality management system and guarantee full security of our customers' data. If you are interested in getting a robust solution to automate invoices, feel free to turn to ScienceSoft’s team.