How much you can save automating invoice recording and implementing OCR?

How to deal with organizational issues in procurement teams and keep a cool head?
2 August 2018
Summary of 2018 in NextBuy
14 January 2019

Source: Freepik

OCR and workflow system for purchase invoices are basic tools for each company.

Only a few years ago 80% of companies used paper invoices. The next step in the evolution of invoices was introducing workflow systems for purchase invoices, then scanning and electronic archiving. Nowadays workflow systems for purchase invoices or OCRs are basic tools for each company.

Procure – To – Pay process and savings. 

Applying technology in that case brings added value for business, both time and financial advantages. The advantages might be even bigger once we automate the whole financial-accounting process which we know as Procure – To – Pay (P2)). Let’s just recall that P2P process includes the following elements of the financial-accounting process:

  • Creating Purchase Request
  • Approval and Purchase Order (in some cases also supplier sourcing when there is no supplier attached to the Purchase Order)
  • Delivery
  • Workflow and settlement of an invoice
  • Payment

In this article we will focus on the invoice workflow and settlement thus scanning with the OCR system, approval workflow and document verification.

Many stages, one goal. So how to integrate procurement and invoice workflow.

Although there are many stages and parties involved in the process, the goal is one and common –  getting financial statement and reliable financial view of the company. During those process which involves many teams, standardization and communication flow would be the most relevant. In that case process automation would work best. It will not only standardize the process but also integrate it with the previous stages.

Let’s picture two scenarios.

Scenario no. 1.

Purchase invoices are recorded manually by a few employees to the system. Additionally, the invoices are sent from various departments independently and accounting team has a very limited view at the purchasing process in a company. It turns out that some of the invoices have no required approvals, eventually they are sent back to the employees and the invoice workflow is disordered. What’s more, there are some errors in the invoice which has been recorded manually. The result: chaos, delays, double work.

Scenario no 2.

The Purchase Request and Purchase Order are processed in the system which enables approval workflow configuration so the order is not sent to the supplier without required approvals. The supply has been delivered, the invoice is attached in the system. The invoice is scanned with the OCR system in the accounting department and recorded in the workflow system for purchase invoices with required approvals. All happens in one, integrated with OCR system. The result: time and money saving thanks to optimizing accounting department work, fostering accounting work, reducing chaos and possibility of errors.

How the OCR system and automatic invoice workflow influence on the company financial savings?

Scenario no. 2 is a great example of how  P2P process automation may influence on a company functioning. Eventually, the cost of settlement is decreased as well as the probability of payment delays.

If you want to calculate how much exactly you can save if you automate the process of invoice recording and the workflow, contact us! Our experts created a calculator  which will help you to verify what savings you may generate for your company!

Enjoy your savings!

If you want to check how NextBuy can support you, GET A FREE DEMO.


Autor

Katarzyna Nitychoruk-Brzeska
Katarzyna Nitychoruk-Brzeska    
I'm a Business Developer specializing in international markets. Experienced in launching new products on international markets (mainly US and UK), marketing (outbound campaigns, social selling, customer segmentation, event management) and customer success.
ZOBACZ DEMO