Automated Invoice Processing Software: Features, Integrations, Success Factors, Benefits

Automated Invoice Processing Software Overview - ScienceSoft

Having 14-year 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.

Automated Invoice Processing Software in a Nutshell

Automated invoice processing software 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). Such software is especially helpful for large companies that need to process a considerable number of paper and digital invoices.

Integrations

Implementation time

Implementation costs

Annual ROI

A payback period

Automated Invoice Processing Software: Key Features

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.
  • 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.

Leverage End-to-End Invoice Processing Automation!

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

Key Integrations for the Automated Invoice Processing System

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 Automated Invoice Processing Software

OCR capabilities

to capture and extract relevant data from paper invoices.

AI-powered invoice prioritization

for approval and payment, for example, based on analysis of early payment discount terms in invoices, to maximize cost savings.

Cloud deployment

to provide secure and scalable centralized storage for digital invoices and enable 24/7 remote employee access for faster invoice approval.

Mobile access

to enable invoice tracking and approval on the go.

Legal compliance

to ensure accurate invoice processing in accordance with global, country- and industry-specific regulations, such as GAAP, IFRS, SOX, GDPR (for EU), ZATCA regulations (for Saudi Arabia), and more.

Implementation Costs and Financial Outcomes for Automated Invoice Processing Software

A custom automated invoice processing system requires $140,000 - $400,000 in investments, depending on the solution complexity. Annual ROI for custom automated invoice processing software may reach up to 460%. An average payback period for such a solution is about 6 months.

Benefits of invoice processing automation

  • 95%+

    faster and more accurate invoice capture and validation

  • Up to 90%

    reduction in invoice processing cost

  • 4x

    increase in AP managers’ productivity due to elimination of tedious manual invoice processing tasks

  • 80%+

    faster invoice approval due to an automated multi-department invoice approval workflow

  • Up to 80%

    shorter invoice-to-pay cycle due to faster invoice processing

  • Simplified

    regulatory compliance and audit preparation due to a full audit trail of invoice-related transactions

  • Off-the-Shelf Invoice Processing Automation Software ScienceSoft Recommends

    Chrome River INVOICE

    Best for

    Large and mid-size businesses that need to automate complex processing of paper and digital invoices.

    Description

    Rating: Key player in the global market for invoice automation software (as per the Global Invoice Automation Software Market report).

    Key strengths:

    • OCR-enabled data extraction from paper invoices.
    • User-defined rules for two- and three-way invoice matching.
    • Native integration with Chrome River Analytics and Chrome River Purchase Order to manage a complete procure-to-pay cycle.

    Features:

    • Automated capture of invoices from emails and payment systems.
    • Automated and manual invoice data verification.
    • Customizable invoice approval workflows.
    • Real-time tracking of the invoice status.
    • Automated alerts and notifications to the A/P managers on the invoice status changes.
    • Intelligent invoice fraud detection.

    Pricing

    Upon request to a vendor.

    Coupa Invoicing Management

    Best for

    Large and mid-size businesses that need to process international invoices.

    Description

    Rating: Key player in the global market for invoice automation software (as per the Global Invoice Automation Software Market report).

    Key strengths:

    • Automated data extraction from e-invoices and PDF invoices.
    • Compliance with invoicing and tax regulations of 40+ countries.
    • Automated invoice scanning to identify and flag early payment discounts.

    Features:

    • Rule-based two- and three-way invoice matching.
    • Customizable thresholds for invoice matching tolerance (global or at the item level).
    • Automated reminders to the invoice approvers.
    • Automated invoice posting to the relevant GL expense accounts.
    • Rule-based routing of non-matching invoices for manual review.
    • AI-powered invoice fraud detection.

    Pricing

    Upon request to a vendor.

    AvidInvoice by AvidXchange

    Best for

    Mid-size and large companies that need easy integration of invoice processing software with their off-the-shelf accounting systems.

    Description

    Rating: Key player in the global market for invoice automation software (as per the Global Invoice Automation Software Market report).

    Key strengths:

    • 210+ pre-built integrations with popular accounting systems, including built on Oracle NetSuite, Sage Intacct, Microsoft Dynamics 365, and more.
    • Scalable cloud-based repository for digital invoices.
    • Comprehensive user training.

    Features:

    • OCR-enabled data capture from paper and digital invoices.
    • Automated two- and three-way invoice matching.
    • Automated invoice coding in GL.
    • Rule-based invoice routing for approval and payment.
    • Real-time tracking of invoice approval status.
    • Automated invoice processing analysis to identify potential bottlenecks.
    • Comprehensive audit trail for invoice transactions.

    Pricing

    Upon request to a vendor.

    When to Opt for Custom Invoice Processing Automation Software

    ScienceSoft recommends building a custom automated invoice processing solution in the following cases:

    You need automated invoice processing software 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 automated invoice processing solution needs to meet specific compliance and security requirements (e.g., in the healthcare industry, government sector).

    You want to avoid costly and effort-consuming integration of the automated invoice processing system with your legacy business-critical solutions, including accounting software.

    Implementation of Automated Invoice Processing Software with ScienceSoft

    In financial software development since 2007, ScienceSoft helps companies build reliable invoice processing automation.

    Automated invoice processing software 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 an integration plan (with accounting software, ERP, a cash management solution, etc.).
    • Implementation cost & time estimates, expected ROI calculation.

    Automated invoice processing software implementation

    • Invoice processing automation needs analysis.
    • Automated invoice processing solution conceptualization.
    • Architecture design of an automated invoice processing system.
    • Development of invoice processing automation software.
    • Integrating the solution with relevant systems (accounting software, ERP, a cash management solution, etc.).
    • Quality assurance.
    • User training.
    • Continuous support and evolution (if required).

    About ScienceSoft

    ScienceSoft is an international IT consulting and software development company headquartered in McKinney, Texas. We provide consultancy and development services to help businesses build effective automated invoice processing software. 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 an automated invoice processing solution, feel free to turn to ScienceSoft’s team.