Madrid, May 2, 2023 – We all agree that we should banish the use of paper invoices as much as possible for many reasons. So why is paper still filling the offices of so many companies? According to a Payments Journal study, up to 70% of all invoice processing worldwide is still done on paper.
The most frequent answer to this question is that suppliers are comfortable with the current process and are usually paid on time. Therefore, there is no pressing need to change.
However, the days of paper invoices are numbered. As companies grow, so does the number of invoices they must process. One thing is to process a few paper invoices a week butthink about what would happen if they became hundreds or even thousands. It would be an expensive, time-consuming activitythat would inevitably be prone to errors. In short, be an accounting hell.
In these circumstances, digitizing invoices can bring significant benefits to all stakeholders.
Eight advantages of invoice digitization
- Allows processing invoices three times faster. Digitizing invoices saves time by greatly reducing the time spent on paperwork, especially manual data entry. Information can be easily scanned into digital formats and data can be extracted from documents much faster. No more diving through hundreds of papers.
- Reduces costs by up to 50%.For outgoing invoices, there is no need to print them, which requires ink and paper, or to send them in envelopes. For incoming invoices, it is possible to save manual processing costs, which can be high when handling many invoices.
In a global survey conducted by EY on e-invoicing, 52% of companies stated that cost reduction was the main advantage of paperless invoice processing: the cost of processing a digital invoice is less than half that of a paper one (€7 vs. €15).
- Minimizes errors. Having to manually copy data from paper invoices causes unavoidable errors in the data entry process. Error rates typically range from 55% to 3.6%, although error rates as high as 26.9% have been identified. Even if only 1% of entries were erroneous, processing 200 invoices per month would ensure data entry errors every month.
Reduced errors result in better and more accurate data that can be used to make informed business decisions.
- Increases employee satisfaction. Manual invoice processing can be a very time-consuming and tedious process for employees, especially when the volume of invoices is high. Not to mention the physical and psychological problems this situation can cause, such as eyestrain, carpal tunnel syndrome, tenosynovitis and emotional stress.
Instead, digitization is proven to enhance employee satisfaction and engagement, allowing workers to focus on more value-added tasks and receive instant gratification in their daily work.
- Improves invoice management. By storing invoices in a digital format, they can be easily searched.
- Saves space. Obviously, digital files do not take up space in cabinets.
- Preserves quality. The quality of digital invoices does not deteriorate, as it does with paper documents.
- Respects the environment. Digitizing invoices allows direct recycling of the paper received and helps comply with the ISO 14001 environmental management standard.
How can invoices be digitized?
There are already approved document software programs that allow certifying digital images made through mobile applications. Basically, the certification process reviews the formats and treatments performed during the three phases of invoice generation:
- Taking the photograph: The software validates that the image has a minimum resolution.
- Digitization: It is guaranteed that the file generated has one of the accepted formats (ISO 19005 PDF/A, PNG, JPEG 200, PDF, or TIFF) and that the information of the certification process is incorporated to the document, in addition to the digital signature of the final document.
- Archive: The invoice saved is checked to ensure that it meets certain requirements and is correctly linkedto the related invoice information.
What can be done with digitized invoices?
Save digital copies
According to a McKinsey report, employees spend an average of 1.8 hours a day, or 9.3 hours a week, searching for and gathering information. The time spent on these low value-added tasks could be spent more wisely if documents were more easily accessible.
Extract data from invoices
There are people who manually extract data from invoices, analyze them for errors, read the text they contain and enter it into software for storage and future retrieval. They do this with both paper and digital invoices.
However, if invoices are digitized, imaging and document software can also extract the data. OCR software, for example, allows structured data to be extracted from images, scans, and files without human intervention. The more sophisticated document software solutions apply artificial intelligence and machine learning, which helps improve accuracy, work more efficiently and save valuable resources.
Process invoices automatically
Without a doubt, the workflow that benefits most from invoice digitization is processing. Smart automation solutions boost efficiency and productivity by extracting data from invoices with OCR and then feeding it seamlessly into the ERP or accounting system.
Secure digital signature
Beyond invoices, an interesting world is opening up in which the most advanced document software products make it possible to certify any type of document with a reliable and secure electronic signature.
In this way, companies streamline and digitize their main workflows, while operating securely and complying with all electronic signature regulations.
Companies increasingly need to be able to use electronic signatures on their documents and thus eliminate their physical storage and use and distribute them electronically. In addition, these cutting-edge software programs can be easily integrated with leading certifying institutions.
And this is not the end of the advantages of this type of document software: it works with the main electronic signatures, it has an intuitive graphic interface to configure the signature process, it allows several document processes to be carried out at the same time (in batch mode) and it is multiplatform. Who can give more?
Digital document merging
And if we take another step beyond invoices and digital signatures, we will identify a need that will not take long to materialize. If we handle many digital documents, there may come a time when we need to merge them. There are already document software applications that allow combining documents from different formats and sources into one. This tool searches for the documents in the configured sources, converts them to the desired format and merges them in the specified order.
This eliminates the inconvenience of handling, converting, and preparing files to be included in a new larger document. The general clauses of insurance policies drafted by the Legal department, usually in MS-Word format, can be used as an example. With this type of document software, they can be combined directly into a policy for the policyholder.
Advanced document software also allows recovering files from any source, using standard converters to perform any combination of formats and merging recovered documents into a single document in the desired output format.
About DocPath
DocPath is a leading enterprise document software company that offers its international customers the technology that allows them to complement their ERP and implement advanced Document Output Management, Customer Communications Management and document software pooling processes.
Founded in 1993, DocPath is based in Europe, USA and Latin America and is present with its Solutions in companies around the world. Among its customers there are prestigious banks and top-tier corporations, facilitating the difficult and complex task of designing, generating and distributing their business-critical documents. DocPath keeps a strong commitment to R+D+i, an area to which it allocates a large part of its revenues, and in which lies one of the keys to its success.
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