Intelligent Invoice Processing – Achieving Efficiency and Transparency

Every day, companies receive a large number of invoices for goods and services used (e.g., supplier invoices), which must be paid promptly. These are often sent by traditional mail, i.e., in paper form, which leads to large and confusing piles of documents. The introduction of automated invoice processing—sometimes referred to as e-invoicing—not only provides a complete overview of the status of all invoices, but also significantly reduces throughput and processing times throughout the company.

In the course of the digitization of office and administrative processes, a study bythe digital association Bitkom (2018) shows that invoice receipt is often one of the first processes in a company to be digitized. For example, 48% of the more than 1,000 companies surveyed already use digital tools for processing invoices; around 12% have plans to introduce them.

A closer look at the underlying process shows why the starting point is in the area of incoming invoices: data enters the company in the form of invoices. In Germany, legal requirements define certain elements that must be included in every invoice. In the second step, the information received must be extracted and validated. The invoice then usually passes through various departments for approval and is finally paid. Finally, it is posted in the accounting department in accordance with legal requirements.

Since this process always follows the same principle, efficiency is greatly increased by introducing a system-supported digital invoice processing system. This system creates the basis for consolidating data and making it accessible. This enables exchange between different departments and joint, simultaneous work on incoming invoices. Centralized storage and accessibility across all process steps also improves the overview. Especially in larger companies, the costs can be quickly recouped by taking advantage of discounts.