Invoice Processing for QuickBooks

Invoice Processing for QuickBooks

We discuss why automated invoice processing is needed for QuickBooks. QuickBooks is a formidable accounting software that is helping companies keep a check on their finances. But the initiation of accounting operations in QuickBooks, as with most business processes, begins with data entry. The right AP data entry to QuickBooks elevates its efficiency and helps companies build accounting best practices. Accessing this data by traditional, manual effort is time-consuming, laborious, error-prone, and inefficient. By automating AP invoice processing using, say, an intelligent process automation system, companies will not only benefit from a seamless, hands-free, end-to-end invoice processing chain but also ensure accelerated and accurate AP data availability to QuickBooks.

Added operating and labor costs mean that even when your business is growing, you may not see the profits immediately. Growing businesses have to deal with increasing volumes of vendor invoices, and with that, the associated operating and labor costs. A company’s standing in the marketplace is determined not just by the quality of its products and services but also by the relationships it forges and maintains with the various stakeholders including customers, vendors, and partners. In the case of vendors, this relationship is strengthened by building trust, which means making payments on time.

But manual invoice processing is time-consuming, laborious, and costly. Manual data entry is error-prone, resulting in delays and inefficiencies along the invoice processing chain. For growing businesses, engaging in outdated AP practices can prove costly in the long-run, derailing the trust they can build with new vendors but also slowing down the progress they can make, given the new opportunities.

To accelerate accounts payable operations and enable faster payments to vendors, what you need is efficiency in invoice processing.
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Adding to the manpower to manage the increasing workloads and invoicing paperwork only adds to the labor costs. Moreover, many companies indulging in manual paperwork to manage mission critical processes end up having their talented AP staff resort to mundane, repetitive data entry work. This is not very productive as manual labor, for one, introduces errors along the invoice processing chain. Secondly, employee morale can take a hit when your talented AP workers are subjected to mundane, mindless paper pushing on a daily basis, rather than being engaged in more meaningful, strategic, growth-oriented tasks.

Manual invoice processing also causes payment delays, and with that, a piling up of debt. That means mismanagement of corporate funds and poor cash flows. And this is not confined to just big corporations or businesses with a large influx of vendor paperwork everyday. Small and mid-sized businesses also pay heavily for accounts payable inefficiencies. The reason being, accounts payable and invoice processing are heavy document-and-labor-intensive processes —

  • Processing a single vendor invoice involves performing a lot of data entry work to get all the relevant invoice details like ‘sum total’ and item lists into a company spreadsheet
  • Validating those details for authenticity using different metrics including 2-way and 3-way invoice matching, arithmetic checks, other business rules, and making numerous calls to cross-check invoice particulars with verification managers, vendors, and procurement personnel
  • Sending the validated invoices to verification managers for approval or dispute resolution; and finally
  • Re-entering the validated invoice into a connected accounting system, ERP, or related business application

Processing a single invoice involves a lot of accompanying steps, not to mention the additional corrections and reprocessing work that needs to be done in case a single data entry goes wrong.

A good way to lower the overheads, delays, inefficiencies, and costs of manual accounts payable would be by automating invoice processing. An invoice processing software, embedded with intelligent automation, can help replace manual effort in processing the hundreds of invoices a company receives per day, but without the inefficiencies and costs associated with manual effort.

Streamlining Invoice Processing

The accounts payable team handles invoice processing. The AP team receives and sorts AP documents, performs data entry, validates, verifies, and approves or rejects the payment of an invoice, after which, the transaction details are archived and corresponding reports prepared and entered into the company’s ERP system or related business application. To ensure accurate and timely payments to vendors, a lot of data validation work is required including finding out if the invoices match the purchase orders and are in accordance with the payment terms agreed with the vendors. Here, invoice workflow efficiency is of utmost importance as any discrepancies or delays in correctly processing, validating, and approving an invoice could delay payments to vendors, and lower the trust and chances of doing repeat business with them.

Companies also run the risk of incurring high reprocessing costs as well as late payment fees. Accelerated invoice processing ensures accelerated payables, debt reconciliations, and payments. Companies adhering to the payment terms and making payments on time can also benefit from some early payment discounts advertised by vendors. In fact, accelerated invoice processing has a lot of cumulative benefits, and ensures a company’s good standing in the marketplace in terms of timely debt reconciliations, vendor trust, and healthy cash flows.

Invoice processing software, embedded with intelligent process automation, helps accelerate payables.
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  1. Multi-Channel Capture: invoices and related AP documents can come from a number of channels like emails, FTPs, scan, fax, post, e-tickets, etc. Invoice processing software is designed to automatically capture incoming vendor invoices in any format.
  2. Data Extraction: machine learning is employed as the primary data extraction method in today’s advanced invoice processing software. Data is extracted based on the capture logic configured and could include various extraction parameters depending on business rules. Zonal or full page extraction, extraction based on self-learning by the intelligent automation bots, support for capture of handwritten text in many languages, etc. all help achieve 90% first-time capture for most advanced intelligent data capture systems.
  3. Data Validation & Verification: like we’ve already mentioned, data validation is a huge step and time-consuming, especially given the number of parameters and business rules a company routinely adheres to in order to comply with AP and data governance laws. Again, intelligent automation comes in handy and helps with straight-through processing of vendor invoices including performing of 2-way and 3-way match, checking vendor details, checking for compliance with agreed upon terms and conditions with vendors, performing arithmetic checks, checking for duplicity and whether partial payments have already been made, etc. Advanced invoice processing software is equipped with intelligent workflow automation to automatically route business documents to designated verification managers for dispute resolution, approvals, or rejections.
  4. QuickBooks Integration & Export: the benefits of advanced automation technologies are better realized when they fit seamlessly with existing IT infrastructure and can be molded to integrate with important business applications and ERP systems. Integration with QuickBooks accounting software helps directly export or submit authorised and validated invoices to the application for final payments and balancing of books.
  5. Archiving: invoice processing software is equipped to automatically create ERP transactions and post authorised invoices and final payments in QuickBooks, which maintains a company’s general ledger. All payment information and report generation of AP transactions are recorded in QuickBooks, leaving a clear and secure audit trail from capture to export and report generation.

Benefits of Artsyl’s Automated Invoice Processing for QuickBooks

  1. No manual data entry and associated errors
  2. No delays in invoice processing
  3. Lower operating and labor costs
  4. Reduced paperwork
  5. Accelerated invoice data availability to QuickBooks
  6. Adherence to data & AP governance standards
  7. Clear audit trail from data capture to export to QuickBooks accounting software
  8. Timely vendor payments and debt reconciliations
  9. Improved cash flows

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Book a Demo of Artsyl’s InvoiceAction for automatic invoice processing, validation, and export of authorised invoices to QuickBooks accounting software.

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