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A Step-by-Step Guide to Implementing Automated Invoice Processing

Take a casual look around your Accounts Payable (AP) department. If you don't currently use automated invoice processing software, here's what the scene may look like: 

A team of AP staff members frantically searching for invoice references on their computer screens while talking on the phone amidst piles of invoices on their desks…

Manual invoice processing is a tedious, time-consuming and error-prone process. And invoices must be paid on time. Late payments lead to a cycle of penalties, friction with vendors or suppliers, and compliance concerns that can prove damaging to your company's reputation.

Now picture this:

An AP department that implements automated invoice processing is free of the shackles of paper. Gone are the wads of unpaid invoices waiting to be matched against POs and shipment receipts. There are no hectic powwows between AP staff, sales team members, and your clients' AR team to reconcile invoice amounts. 

Instead, the AP team can spend their coffee break at peace, knowing that all pending invoices are being processed automatically, with minimal intervention and, most importantly, no errors!

Read on as we discuss the challenges of manual invoice processing and a simple 5-step plan to automate invoice processing and streamline AP processes.

RDS offers an automated invoice processing automation software solution and consulting to optimize your accounts payable team's efforts, saving time and reducing the cost of processing. 

Automated Invoice Processing in 5 Easy Steps

If you are looking to implement invoice automation, this article presents a comprehensive roadmap. Follow these 5 easy steps to accelerate and optimize your existing manual invoice processing workflows.

RDS offers a transformative solution that leverages the power of automated invoice capture to provide efficient and accurate invoice processing.

Step 1: Defining the need for invoice automation

If your AP team is struggling with an increasingly heavy load of paper invoices, you may be prone to costly errors and delays in payments. Invoice automation addresses the challenges associated with manual processes. It saves time and effort and optimizes the operational cost of processing. Most importantly, it gives you the transparency and control necessary for effective financial management and decision-making. 

The first step to automating invoice processing is to define the need for AP transformation. Log the common issues your AP team faces in processing and understand how an automated solution will benefit your team.

Step 2: Pre-implementation preparations

Next, study your existing manual workflows. Map out each step, articulate who does what and how long it takes. Who are the stakeholders who approve various actions, and are there known bottlenecks that regularly cause delays?

Estimate the volume of daily invoices, indicating peak and lean periods. Estimate the volumes of types of invoices (with or without a corresponding PO). Pinpoint key performance indicators like the average error rate in the manual data entry, the average invoice cycle time, and the delayed payment rate.

These will help you define the objectives for the transition to automated processing, identify areas for improvement and set clear goals expected from implementing invoice processing automation.

Step 3: Selecting the right invoice automation solution

Finding the right invoice automation solution is the key to a successful transition. 

  • Look for a comprehensive solution that starts with digitizing all your paper-based invoices to create a centralized digital repository. 

  • The solution must also feature automated data capture to ingest all new paper invoices and automatically capture key data from them, classify and sort them using AI.

  • It must also have robust workflow automation capabilities to streamline existing manual processes, automate repeatable processes, and expedite approvals to remove administrative bottlenecks.

If you want to offload the data capture portion of the AP process, RDS offers high-volume document scanning and leverages OpenText Intelligent Capture to digitally capture data from new paper invoices and trigger paperless processing workflows.

You may want to explore various AP automation software solutions available from different vendors.

  • It is important to do a comparative analysis of the features and functionality of each solution. You can then select the one that addresses the specific challenges you have identified in Step 2 and also ensure the solution aligns well with your organization's objectives.

  • Don't forget to evaluate the solution provider's capabilities to deliver a smooth and efficient implementation. Ensure the provider has a proven track record in implementing similar projects within your industry.

  • Finally, evaluate the solution provider's ability to support your team post-implementation with training, documentation, and ongoing assistance.

Step 4: Implementation steps

Data migration and customized Setup: The next step is to migrate all your existing data into the new system. Configure and customize the automated system to accommodate the unique requirements of your AP team's processes and preferred workflows.


Integrations: Enable integrations of the new solution with your existing tech stack, including ERP, document management systems, workflow management systems, or accounting software.

Seamless and error-free integration is essential to ensure operational efficiency. 


Testing and QA: Place special emphasis on rigorous testing to ensure the automated system functions seamlessly and accurately. Ensure that it provides adequate resolution for the pain points you identified at the start of the implementation.

Step 5: Going live, continuous monitoring & refinements

A successful implementation minimizes disruption and maximizes user adoption. Work with your AP automation solution provider or implementation partner on a strategic plan that creates buy-in with stakeholders as well as AP staff members. Once they see the benefits of automated invoice processing and the time and effort it will save, they will adopt it eagerly. Empower them with hands-on training on the new system, product documentation, and ongoing support.

After the go-live, you want to ensure continuous monitoring of the newly automated processes. Identify any glitches or inefficiencies. Review KPIs identified in Step 2 to evaluate the extent of improvements achieved.

Work with your implementation partner to refine the system to ensure optimal performance and meet the objectives set out at the start of the implementation.

RDS: Your Implementation Partner for Automated Invoice Processing

A robust invoice automation solution is the key to dealing with the challenges of processing paper invoices manually. However, it is critical to find the right automation solution and implement it with a well-planned rollout strategy. 

Turn to RDS as your trusted implementation partner. Our Accounts Payable automation solution seamlessly integrates with your existing systems to improve invoice processing performance in real-time.

OpenText Intelligent Data Capture promises unparalleled accuracy and speed in data extraction, reducing manual intervention significantly. With user-friendly interfaces and scalability to accommodate future growth, it is the ideal way to transition from manual processing and 

Take a leap into the future with our transformative invoice automation solution and rev up your AP workflows to enhance efficiency, accuracy, and productivity.

Connect with our consultants today.