Explore the Controller and CFO roles in the financial ecosystem. Find out how they differ in invoice automation and who gains the most in efficiency, oversight, and strategy.
Keeping track of invoices can be quite a headache for any finance professional. From receiving invoices to processing them, to making on-time payments, it can be a time-consuming and arduous process.
However, with the advent of automated invoicing system technology, accounting departments can streamline the invoice process and reduce manual errors through automation. This has led to much debate on who benefits more from invoice processing automation, the controller or the CFO. In this blog post, we will explore how both roles benefit from invoice automation.
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Before the advent of invoice automation software, the handling of invoices presented a number of challenges that impacted the efficiency, accuracy, and cost-effectiveness of financial departments. Below are some of the major challenges associated with manual invoice handling:
Manual invoicing can be an extremely labor-intensive process. Employees spend considerable amounts of time performing repetitive tasks such as data entry, verification, and approval workflows. This significantly delays payment cycles and adversely affects supplier relations.
With manual processes, the probability of human errors in data entry, calculations, and approvals is high. Such mistakes can have ramifications that range from delayed payments to compliance issues and can cost the company both time and money to rectify.
In a manual system, keeping track of invoices at various stages of processing can be cumbersome. Physical papers can get misplaced, and there is no easy way to monitor the status of an invoice or view a centralized history of all transactions.
Physical storage, printing, and personnel costs can add up quickly in a manual invoice system. Moreover, the slow speed of manual processing can lead to missed early-payment discounts and incur late-payment penalties.
The majority of global AP teams (54%) still remain only partially automated. Over two-thirds (68%) still manually key invoices into the accounting software, while 56% of respondents spend over ten hours a week processing invoices and supplier payments.
Source: Institute of Financial Operations and Leadership
Without an automated system, it is difficult to gain insights into the invoicing process, such as bottlenecks, inefficiencies, or fraud risks. This makes it challenging to hold individuals accountable for their roles in the process or to identify areas for improvement.
Manual invoicing makes it harder to ensure compliance with company policies, industry standards, or governmental regulations. Tracking compliance without automated tools can be both risky and time-consuming.
As a business grows, so does the complexity and volume of its invoices. Manual systems are not easily scalable, which means businesses may need to invest significantly in additional human resources and physical storage space as they expand.
In light of these challenges, many companies are now turning to invoice automation software to streamline their invoicing processes. Automation not only mitigates many of these issues but also introduces new efficiencies, analytics, and cost savings.
Invoice automation software is a technology-driven solution that streamlines the accounts payable process, transforming it from a manual, error-prone, and time-consuming activity into an efficient, accurate, and quicker operation. This form of automation utilizes various software tools and technologies to capture, process, approve, and pay invoices with minimal human intervention.
The primary objective of invoice processing automation is to eliminate routine and repetitive tasks, enabling finance teams to focus more on strategic activities.
The benefits of automated invoicing systems are numerous. Not only does it reduce the margin for error, but it also frees up valuable staff time and allows for faster turnaround times for payments and invoicing.
Additionally, it provides greater transparency and improved control over costs, which can have a positive impact on the bottom-line of a business. With so many benefits to be gained from invoice automation, it is no surprise to see more and more companies implementing it as a core component of their financial operations.
By adopting invoice automation solutions, companies are not only solving the challenges inherent in manual processing but are also gaining a competitive edge through increased efficiency and operational insights.
Managing the finances of a company requires a lot of work and attention. One of the most challenging tasks is managing the invoices that need to be paid. Paper-based invoice processing can be a nightmare for the accounting department as it involves entering data manually, which has a high margin for human error, and requires significant time to process.
An invoice automation solution provides a solution to this problem by automating invoice processing. Invoice workflow automation technology aims to simplify the process for the accounting department while also saving a lot of time and money for the company. Let’s find out how invoice automation benefits controllers and their accounting team, making their lives easier and more efficient.
One of the main advantages of an invoice automation solution is that it increases processing time significantly. Automated invoice processing software can extract data from invoices in seconds, making it twenty times faster than traditional manual data entry.
Scanning invoices for relevant information like vendor, invoice date, bill amount, and payment terms can be done quickly and efficiently. This means employees have more time allocated towards valuable tasks that require human analysis and less time spent processing and checking data.
Invoice Automation reduces the costs associated with paper-based invoicing, such as printing, paper and ink supplies, and manual staff expenses. It also eliminates late payments by automatically sending reminders to vendors to submit their invoices electronically. This saves extra costs in late fees and numerous staff hours spent following up on non-payment invoices.
Manual data entry has a high probability of errors due to human mistakes. Data can be inaccurately entered, misplaced, or lost during processing. Sometimes, duplicates get processed without proper quality checks leading to potential overpayment or higher expenditures.
Invoice workflow automation reduces these risks by providing accurate data extraction. The software also includes robust error checking algorithms that flag discrepancies and prevent incorrect data entry.
Automated invoice processing systems provide better system visibility by creating a single source location to view invoice processing workflows. Invoice processing software generally offers comprehensive reports accessible at any time to track invoices, processing times, history, and status, enabling the accounts payable team to track invoices more efficiently.
Additionally, automating the purchase order process also helps identify errors and discrepancies early, so they can be corrected before payment processing is initiated.
Lastly, most automated invoice processing software integrates seamlessly with other financial applications, such as accounting software, ERP, or CRM. Through integration, real-time synchronization is maintained, enabling consistent data flow, and more legal financial information, which would increase the accuracy of financial reports.
In conclusion, automating invoice processing can significantly reduce costs, errors, processing time, better system visibility and ultimately increase productivity, efficiency, and profitability. It helps CFOs and their teams gain complete control over their finances while freeing them to do valuable work for their company.
If you are struggling with paper-based invoice processing, it’s time to consider implementing an automated invoice processing system. Automate your accounts payable tasks and start enjoying the benefits today!
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As businesses have grown in complexity over the past decade, traditional accounting processes are struggling to keep pace. Invoices, in particular, can be a nightmare to manage. During a time when compliance, efficiency, and cost-effectiveness are top priorities for CFOs, Invoice automation has become a valuable tool. In this blog post, we will explore how CFOs can benefit from automating their invoice process.
Invoice automation allows you to reduce the cost of invoice processing by automating the manual and repetitive tasks associated with managing invoices. This automation leads to a significant decrease in the number of staff hours needed, which can result in substantial cost savings for the company, reduced errors and improved efficiency.
Manually processing invoices is a time-consuming task that is prone to mistakes. Automation of invoices ensures that there are no data entry errors. Additionally, automated software performs compliance checks to ensure that all government regulations are being followed.
This invoice processing accuracy leads to reductions in rework, fewer errors, improved supplier relationships, and faster payment times.
Automated invoices help businesses manage their cash flow better. By ensuring that invoices are paid on time, invoicing automation can improve a company’s cash flow position.
Also, invoice automation tells CFOs which invoices have been paid and which ones have not, giving you an up-to-date view of your accounts receivables and payables. It can help with forecasting and better planning to ensure that you have the required cash reserves when you need them.
CFOs can make better decisions for their organizations by using the data gathered from invoice automation. Invoicing software can extract the data from invoices to provide deeper insights into the organization’s spending patterns and trends. This data can be used to identify potential cost savings, identify areas where automation can be improved, and aid with compliance investigations.
Automated invoice processing frees up time for finance teams to focus on strategic projects. Staff members who would have spent hours processing invoices can now focus on more important tasks such as revenue generation, cost-saving projects, and more. The use of invoicing automation allows for an increase in overall productivity throughout the organization.
Overall, invoicing automation is the key to enhancing a CFO’s financial management capabilities and moving their accounting function towards greater efficiency. CFOs who are willing to embrace automation tools and streamline their invoicing processes will be able to reap the benefits of cost savings, improved accuracy, better cash flow management, better decision-making capabilities, and increased productivity.
Invoicing automation is an investment that will pay off in the long run, helping a CFO to create a more sustainable, efficient, and profitable organization.
While the Controller may benefit from SaaS invoice automation through increased accuracy and reduced manual tasks, and the CFO through real-time visibility and better decision making, both roles benefit from automation in the same way. Invoice automation can reduce invoice processing times and free up valuable resources to focus on other strategic tasks.
Invoice automation can also improve supplier relationships by reducing disputes, improving payment accuracy, and enabling prompt payment for services rendered, ultimately helping to reduce costs across the organization.
Apart from immediate benefits, implementing an SaaS invoice automation solution provides long-term benefits for the entire organization. Invoice automation software often integrates with accounting software to improve workflows, boost efficiency, and reduce costs. In addition, automation provides valuable data for audits to ensure compliance with financial regulations.
By automating the invoicing process, every accounting professional in the organization can save time and effort, reduce errors, improve data accuracy, and ultimately increase profits.
In conclusion, both the Controller and the CFO can benefit from the automation of the invoicing process. While the CFO may have access to real-time data and analytics, the Controller can benefit from reduced manual tasks, improved accuracy, and better financial reporting.
In the long run, the organization benefits from SaaS invoice automation through improved workflows, increased efficiency, reduced costs, and more accurate data. By implementing automation, businesses can take advantage of technological advances and emerge stronger in today’s competitive landscape.
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Invoice automation is a technology-enabled process that replaces or minimizes manual tasks involved in the handling and processing of invoices, from capture and approval to payment. The goal is to increase efficiency, reduce errors, and decrease operational costs.
SaaS invoice automation software captures invoices that come in through various channels like email, fax, or hard copies. Data is then extracted and validated. Following this, invoices are routed for approval and then for payment, all while maintaining a detailed, compliant record of each transaction.
The primary benefits include increased efficiency, reduced risk of human error, cost-saving, better compliance with regulatory standards, and the ability to generate analytics for business insights.
The initial cost can vary based on the size of the organization and the specific needs. However, the ROI is often realized quickly due to the significant time and cost savings.
Modern invoice automation software comes with multiple layers of security to protect your data. Encryption, secure user authentication, and compliance with privacy standards like GDPR are generally part of a robust security framework.
Look for a solution that aligns with your business needs, integrates well with your existing systems, and scales as you grow. Read reviews, request demos, and consider conducting a pilot test.
Most advanced invoice automation solutions offer seamless integration with popular ERP systems like SAP, Oracle, and Microsoft Dynamics, among others.
Most systems have built-in alerts for discrepancies and require manual intervention only in such cases, making it easier to catch errors and rectify them quickly.
Yes, sophisticated invoice automation systems can handle multiple currencies and are configurable to adhere to various country-specific tax regulations.
By automating the invoicing process, payments can be made more promptly, which often leads to better relationships with suppliers. Some systems also provide suppliers with a portal to view the status of their invoices and payments, adding a layer of transparency.
No, it won’t replace your team but will free them from repetitive tasks, allowing them to focus on more strategic, value-added activities.