Automated Invoice Processing: Key Steps, Success Factors, Benefits, Costs
Having 16 years of experience in building financial software and practical knowledge of 30+ industries, ScienceSoft offers custom software development services to help businesses implement effective invoice processing automation.
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.
Integrations
Accounting software, ERP, a cash management system, and more.
Automation timelines
6–9 months on average.
Implementation costs
$140,000–$400,000, depending on the solution complexity.
Annual ROI
100–460%.
A payback period
6 months on average.
Main Use Cases of Invoice Processing Automation
Invoice capture and validation
Embrace the capabilities of AI, RPA, and OCR technologies to get 95% faster and more accurate invoice data capture 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
Get instant calculation and 100% visibility of the invoice processing metrics. Employ ML to analyze historical invoice data and precisely forecast the due payment amounts.
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.
- Capture of numeric and textual invoice content.
- ML-powered data extraction from digital invoices.
Invoice validation
- Automated invoice coding in the general ledger (GL).
- Automated two- and three-way 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
- 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.
- Centralized invoice storage.
- Configurable invoice retention 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 invoice fraud detection.
- Multi-factor user authentication.
- Role-based access control.
Key Integrations for the Automated Invoice Processing System
To maximize efficiency and accuracy of invoice processing workflows, ScienceSoft recommends that the automated invoice processing solution should be integrated with the following back-office systems:
- 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.
OCR capabilities
to capture and extract relevant data from paper invoices.
AI-powered invoice prioritization
for approval and payment to maximize cost savings.
Mobile access
to enable invoice tracking and approval on the go.
Cloud deployment
to provide secure and scalable centralized storage for digital invoices and enable 24/7 remote employee access for faster invoice approval.
Legal compliance
to ensure accurate invoice processing in accordance with the latest legal standards, such as GAAP, IFRS, SOX, GDPR (for EU), ZATCA requirements (for Saudi Arabia), and more.
1
Business needs analysis and eliciting requirements for invoice processing digitalization.
2
Designing the functionality, architecture, and tech stack for the automated invoice processing system.
3
Project planning: deliverables, scope of work, duration, budget, team composition, etc.
4
Custom invoice processing software development.
5
Quality assurance.
6
Invoice data migration (from spreadsheets or a previously used invoice management tool).
7
Establishing integrations with the required internal and third-party systems.
8
User training.
9
Continuous support and evolution of the automated invoice processing solution (optional).
ScienceSoft’s Tech Stack for Invoice Processing Automation
Programming languages
Back end
Practice
19 years
Projects
200+
Workforce
60+
Our .NET developers can build sustainable and high-performing apps up to 2x faster due to outstanding .NET proficiency and high productivity.
Practice
25 years
Projects
110+
Workforce
40+
ScienceSoft's Java developers build secure, resilient and efficient cloud-native and cloud-only software of any complexity and successfully modernize legacy software solutions.
Practice
10 years
Projects
50+
Workforce
30
ScienceSoft's Python developers and data scientists excel at building general-purpose Python apps, big data and IoT platforms, AI and ML-based apps, and BI solutions.
Practice
10 years
Workforce
100
ScienceSoft delivers cloud-native, real-time web and mobile apps, web servers, and custom APIs ~1.5–2x faster than other software developers.
Practice
16 years
Projects
170
Workforce
55
ScienceSoft's PHP developers helped to build Viber. Their recent projects: an IoT fleet management solution used by 2,000+ corporate clients and an award-winning remote patient monitoring solution.
Practice
4 years
ScienceSoft's developers use Go to build robust cloud-native, microservices-based applications that leverage advanced techs — IoT, big data, AI, ML, blockchain.
Front end
Practice
21 years
Projects
2,200+
Workforce
50+
ScienceSoft uses JavaScript’s versatile ecosystem of frameworks to create dynamic and interactive user experience in web and mobile apps.
Front end Javascript frameworks
Practice
13 years
Workforce
100+
ScienceSoft leverages code reusability Angular is notable for to create large-scale apps. We chose Angular for a banking app with 3M+ users.
Workforce
80+
ScienceSoft achieves 20–50% faster React development and 50–90% fewer front-end performance issues due to smart implementation of reusable components and strict adherence to coding best practices.
By using a lightweight Vue framework, ScienceSoft creates high-performant apps with real-time rendering.
Mobile
Practice
16 years
Projects
150+
Workforce
50+
ScienceSoft’s achieves 20–50% cost reduction for iOS projects due to excellent self-management and Agile skills of the team. The quality is never compromised — our iOS apps are highly rated.
Practice
14 years
Projects
200+
Workforce
50+
There are award-winning Android apps in ScienceSoft’s portfolio. Among the most prominent projects is the 5-year-long development of Viber, a messaging and VoIP app for 1.8B users.
Practice
11 years
Projects
85+
Workforce
10+
ScienceSoft cuts the cost of mobile projects twice by building functional and user-friendly cross-platform apps with Xamarin.
ScienceSoft uses Cordova to create cross-platform apps and avoid high project costs that may come with native mobile development.
ScienceSoft takes the best from native mobile and web apps and creates the ultimate user experience in PWA.
Practice
8 years
Projects
300+
ScienceSoft reduces up to 50% of project costs and time by creating cross-platform apps that run smoothly on web, Android and iOS.
Desktop
Practice
34 years
Workforce
40
ScienceSoft's C++ developers created the desktop version of Viber and an award-winning imaging application for a global leader in image processing.
Practice
4 years
Workforce
40
We used Qt to deliver a cross-platform desktop app for a global leader in image processing, a desktop version of Viber, VoIP messenger with over 1 billion users, and an anti-procrastination app acknowledged by The Daily Telegraph and BBC.
Practice
19 years
Projects
200+
Workforce
60
Our C# developers created the world’s largest PLM software. Their recent projects: development of SaaS for vCIO services management and underwriting software for a global aviation insurer.
Practice
15 years
Workforce
~40
We have delivered WPF-based solutions for a leading market research company and a global leader in image processing.
Practice
10 years
Workforce
30
We use Python for rapid development of cross-platform desktop apps.
Databases / data storages
SQL
Our Microsoft SQL Server-based projects include a BI solution for 200 healthcare centers, the world’s largest PLM software, and an automated underwriting system for the global commercial insurance carrier.
We’ve implemented MySQL for Viber, an instant messenger with 1B+ users, and an award-winning remote patient monitoring software.
Azure SQL Database is great for handling large volumes of data and varying database traffic: it easily scales up and down without any downtime or disruption to the applications. It also offers automatic backups and point-in-time recoveries to protect databases from accidental corruption or deletion.
NoSQL
Our Apache Cassandra consultants helped a leading Internet of Vehicles company enhance their big data solution that analyzes IoT data from 600,000 vehicles.
ScienceSoft has helped one of the top market research companies migrate its big data solution for advertising channel analysis to Apache Hive. Together with other improvements, this led tо 100x faster data processing.
We use HBase if your database should scale to billions of rows and millions of columns while maintaining constant write and read performance.
Cloud databases, warehouses and storage
AWS
We use Amazon Redshift to build cost-effective data warehouses that easily handle complex queries and large amounts of data.
We use Amazon DynamoDB as a NoSQL database service for solutions that require low latency, high scalability and always available data.
Azure
We leverage Azure Cosmos DB to implement a multi-model, globally distributed, elastic NoSQL database on the cloud. Our team used Cosmos DB in a connected car solution for one of the world’s technology leaders.
Azure SQL Database is great for handling large volumes of data and varying database traffic: it easily scales up and down without any downtime or disruption to the applications. It also offers automatic backups and point-in-time recoveries to protect databases from accidental corruption or deletion.
Big data
By request of a leading market research company, we have built a Hadoop-based big data solution for monitoring and analyzing advertising channels in 10+ countries.
A large US-based jewelry manufacturer and retailer relies on ETL pipelines built by ScienceSoft’s Spark developers.
Our Apache Cassandra consultants helped a leading Internet of Vehicles company enhance their big data solution that analyzes IoT data from 600,000 vehicles.
We use Kafka for handling big data streams. In our IoT pet tracking solution, Kafka processes 30,000+ events per second from 1 million devices.
ScienceSoft has helped one of the top market research companies migrate its big data solution for advertising channel analysis to Apache Hive. Together with other improvements, this led tо 100x faster data processing.
We leverage Apache ZooKeeper to coordinate services in large-scale distributed systems and avoid server crashes, performance and partitioning issues.
We use HBase if your database should scale to billions of rows and millions of columns while maintaining constant write and read performance.
We leverage Azure Cosmos DB to implement a multi-model, globally distributed, elastic NoSQL database on the cloud. Our team used Cosmos DB in a connected car solution for one of the world’s technology leaders.
We use Amazon Redshift to build cost-effective data warehouses that easily handle complex queries and large amounts of data.
We use Amazon DynamoDB as a NoSQL database service for solutions that require low latency, high scalability and always available data.
Platforms
Practice
14 years
Projects
25+
Workforce
10+
A certified Microsoft partner, ScienceSoft creates CRM and ERP solutions powered by Dynamics 365 and optimizes most effectively a range of business operations.
Projects
10+
ScienceSoft achieves at least 20% increase in sales and 30% improvement in case resolution with well-thought-out and business-tailored Salesforce solutions.
Practice
11 years
Projects
20+
Workforce
10+
A certified Adobe Solution Partner, ScienceSoft builds on robust functionality of Adobe Commerce to create highly automated and scalable ecommerce solutions.
Practice
15 years
Projects
100+
Workforce
20+
Solid expertise in SharePoint services has earned ScienceSoft a place in Clutch’s list of Top SharePoint Developers in 2023.
Practice
12 years
A certified ServiceNow partner, ScienceSoft offers a proprietary 4-level implementation model that helps deliver the best value from ServiceNow adoption.
Practice
7 years
ScienceSoft sets up Power BI to process data from any source and report on data findings in a user-friendly format.
Based on ScienceSoft's experience, a custom invoice processing automation system requires $140,000–$400,000 in investments, depending on the solution complexity.
Want to know the cost of your invoice processing solution?
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.
Benefits of invoice processing automation
|
You need an automated invoice processing system to provide specific features, for example, creating custom events to trigger invoice validation and posting to GL or enabling tailored priority rules for invoice routing for approval and payment. |
|
Your invoice processing automation solution needs to meet specific compliance and security requirements (e.g., in the healthcare industry or public sector). |
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You want to avoid costly and effort-consuming integration of the automated invoice processing system with your existing business-critical solutions. |
ScienceSoft’s best practice: If you deal with a moderate volume of invoices and don’t have specific requirements to the automation solution’s UX and UI, consider platform-based development. From our experience, using low-code platforms (e.g., Microsoft Power Apps) can reduce the costs of creating an invoice processing automation system by up to 74%.
Invoice Processing Automation with ScienceSoft
In financial software development since 2007, ScienceSoft helps companies implement reliable invoice processing automation.
Invoice processing automation: consulting
- Analysis of invoice processing automation needs.
- Assessment of the existing invoice management processes, tools and their integration points.
- Suggesting optimal invoice processing automation features, solution architecture and tech stack.
- Preparing a plan of integrations with the required systems.
- Implementation cost & time estimates, expected ROI calculation.
Invoice processing automation: implementation
- Invoice processing automation needs analysis.
- 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).
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 processing automation. Being ISO 9001 and ISO 27001 certified, we apply a mature quality management system and guarantee that cooperation with us does not pose any risks to your data security. If you are interested in getting a robust automated invoice processing solution, feel free to turn to ScienceSoft’s team.