How to Enhance Your Invoice Processing System


Of the many things essential to an organization, invoice approval process tops the list. It covers almost every department and purchase orders of all sizes. Handling them with utmost precision is the key to a successful business running. Manual data entry system is typical to approximately 70% of the companies today. But at the same time, it is slow, time-consuming and errors prone. Hence, making a shift to automated processing today has become imperative.

Manual vs Automated Invoice Process

To state an example, most invoices generated in an organization do not reach the end of the process. They sometimes fail due to the presence of a plethora of common problems. This is especially seen when there are many touch points in an invoice generation – its point of preparation, routing, physical data entry, and errors corrections. All of these not only delay the process but also increase the risk of faults to manifold.

Automating the entire invoice process, on the other hand, aids in eliminating approximately 95% of these errors. It’s easy to scale up without even increasing workforce, routing of documents becomes easy, eliminates duplication of payments, reduces invoice related disputes and even creates a simultaneous audit trail for easy understanding of business reports in future.

A Partner to Bank Upon

Making use of automated invoices, receipt generation and purchase orders not only helps enhance an organization’s invoice process significantly but at the same time, follows the exact chain of authority for approval to churn out best results with least errors, as needed in an organization. A great advantage of this procedure is that it provides visibility into every step of the process and allows authorized users to access the path an invoice goes through.

But there’s a catch here. Not every invoice processing software available in the market allows different businesses to tailor them as per their venture’s needs and demands. This is where the veterans speaks of Microsoft Dynamics CRM.

A highly flexible software, Invoice Workflow for Dynamics AX2012 allows smooth flow of invoice routing and approvals from different departments along with configuring itself according to an organization’s activity flow. The automatic notification element of the software allows on-time approval of invoices and prompt handling of exceptions and escalations.

How to Improve Your Invoicing Process

  • Adopt a Smart Invoicing solution

    A highly effective invoicing procedure is important for every business to maintain a steady cash flow. Efficient and smart invoicing is vital for the success of the businesses. Efficient invoicing empowers the organizations to considerablyreduce the time between completing a project, selling goods, offering services and getting the payment.

    Also, the latest invoicingtools allow the experts to quickly send invoices without spending a lot of time on them. The process of dealing with payments becomes quick and easy with the latest invoicing processes. Microsoft Dynamics AX 2012 is certainly one of the best tools for intelligent invoicing.

  • Automate the invoicing Process

    One of the best ways to improve the invoicing process is by automating the receipts management, order management, invoice matching etc. Manually matching the invoices or sending and receiving is a tough task, and time consuming as well. Therefore, it is important for the businesses to automate the invoicing process. By eliminating the requirement of human intervention, automation techniquesfasten up the overall invoicing process.

  • Customize the invoicing process

    Customization and Personalization are gaining a lot of popularity in the recent times. Therefore, in order to improve the invoicing process, you may want to contact your clients and gather details. You can speciallydesigninvoices for different clients. This will ensure that your invoices move quickly through the client’s payment system. Also, the invoices are much more efficient.

  • Right Audit Process

    A plan is a sequence of activities that, when combined, are designed to produce the desired outcome. Did you know that businesses that document their processes have a success rate that is 280 percent greater than organizations that don't document their procedures? One of the numerous advantages that documented procedures provide is an increase in the output's overall quality. It is vital to choose the appropriate audit strategy. It can assist the auditor in refining audit performance in terms of both effectiveness and efficiency.

    You will not be charged anything to record your audit procedures. The auditing procedure, broken down into internal and external audits

    Internal audits and external audits are the two categories that make up the auditing world.

    1. Audits are conducted internally inside a firm and are done so voluntarily. This is done to act as quality control checks and compare various company activities to predetermined criteria. These criteria could be decided upon by the government, by regulatory agencies, or even by the entity that is being regulated.
    2. An external audit is carried out by a certified auditor who is independent of the company being audited. These are NOT optional requirements. They function to safeguard that a company's records are comprehensive, accurate, and following the applicable legal requirements.
    3. Prioritize payment Procedure

    In the current economic situation, businesses across all businesses are under pressure to do a lot with just fewer resources. Because of this, companies simply cannot afford to throw away possibilities that may increase their available working principal. A formal working capital approach can deliver the additional liquidity you require to fund development, rationalize procedures, lessen expenses, improve service levels, and grab newer investment chances while they become available by making the cash that is surrounded on the balance sheet more accessible to you. This series will concentrate on four fundamental tactics for releasing working capital, namely inventory management, cash management, accounts receivables, and strategic planning of accounts receivable therefore Prioritizing the payment Process is important.

    Executing a complete overhaul of your payment processing system is not something that can be done in a single day. Even if the transition to an electronic method may take some time, there are still methods in which your organization can enhance the payment processing it does in the meanwhile.

    Analyzing the payment requests made by your firm and determining which bills take precedence are two steps toward achieving the goal of streamlining payments without avoiding the use of high-tech solutions. If you have debts that need a higher priority, you should establish a speedier approval procedure to finish the payment as quickly as possible.

  • Go Paperless Process

    Paper invoices are prone to be mutilated, misplaced, misfiled, and delivered to the incorrect recipient regularly. In addition, also if the correct individual is the one to receive the paper invoice, it will still need to be entered in by hand into the accounting software. Nonetheless, let's check the below procedure on how can we go with a paperless process:

  • Capture

    To begin, you will need to import the information from the invoice into the digital system or platform that you use for AP Automation.

  • Code

    After you have finished collecting the data, you will need to code the invoice so that it can be reconciled with your general ledger.

  • Matching and Confirm

    Invoices generally have to be accompanied by some type of supporting paperwork, such as a purchase order (PO), since the vast majority of businesses use some kind of internal payment procedure.

  • Approval

    When it comes to accounts payable teams, the approval procedure may often be a significant obstacle.

  • high level of consistency Process

    There seems to be a limitless number of different approaches you might use to support your billing and invoicing process. Whatever method you select to use to update your billing, the most important thing is that you do it in an orderly and consistent manner. Maintaining a high degree of consistency is the single most important step in achieving a client billing process that is straightforward, efficient, and successful. To begin, having a procedure that is always followed makes it possible to do the real task in less time. Second, it makes it simpler to recognize difficult customers, problems with invoicing, and other opportunities to enhance your operations in various ways.

    Your line of work and company will strongly influence the particulars of the payment standards that you must fulfill. Regardless of what they are, though, they must be constant. The use of a reward and fee structure, and one that is clearly described in a contract and enforced, can assist you in maintaining the constancy of your flow of cash and the method by which you charge customers.

Benefits of Invoice Workflow for Dynamics AX 2012

Invoice Workflow for Dynamics AX 2012 speaks of the following benefits to its users:-

  • ROI of 1 year.
  • Saves time, cost, efforts, and even man force handling.
  • Helps build a strong relationship between the organizations and their suppliers with on-time payments schedules and highly efficient invoice handling process.
  • Highly customizable and efficient approval workflow structure.
  • Brings to plate Dynamics AX account arrangement with new, enhanced dimension validation scheme.

To conclude, gone are the days when relying on manual data entry system and invoice generation process were the only options at hand. Today, there a humongous number of automated processes that promise to make business operations easy. Invoice Workflow for Dynamics AX 2012 is a perfect partner to shake hands with and carry out business activities smoothly.

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