![]() ![]() Others forward these emails on to the person responsible (as explained above), but there’s still the matter of manual data entry to update financial records. Some companies actually print out electronic invoices, re-enter them into spreadsheets, and then physically file the paper record. Or for software and online subscriptions, you may have to hunt them down on the platform in question.īut this hasn’t necessarily reduced the need for double handling and data entry. While you may still receive the odd invoice in the post, you’re far more likely to receive them as email attachments. For the most part, we don’t have to pass paper from person to person any more.ĭigitization has taken over, and we can now easily communicate through email providers and Slack rather than sending letters.įor the most part, invoices have followed suit. There’s something missing from modern office spaces that used to be the norm: in- and out-trays. How the invoice management process has changed Which is a shame, because invoice management has come a long way. Whichever your business is large or small, you still may be struggling from the same problem: old fashioned processes. They still have plenty of invoices to process - they just don’t have a unique team to handle them all. This is usually the case for most small and growing businesses. They definitely have better things to worry about. In reality, they spend a huge amount of time on data entry and fixing errors made by other people in the process.Īnd if you don’t have a dedicated AP manager or team, it’s the office manager or finance experts doing all this work. In theory, your accounts payable team is there to improve supplier relations, hunt discounts, and find the best possible businesses for you to partner with. They can even help you streamline your pest control billing process, as demonstrated in this helpful guide. All of these come with invoices that need to be paid. ![]() This can include raw materials, software, and even freelancers and consultants. AP is there to make sure that suppliers get paid, and you get the goods and services your company needs to thrive.Īs we mentioned above, accounts payable teams work with other staff to make sure they have what they need. In large and established businesses, invoice management is usually part of the accounts payable process. And this becomes vital as their number grows.īut before tackling that, let’s say a few quick words about accounts payable. ![]() But as we’ll see shortly, there are faster and more accurate ways to handle invoices. This is standard operating procedure for most growing businesses. Already there’s plenty of double handling.īut even if the invoice arrives flawlessly with the AP clerk, there’s still the matter of entering its data into a spreadsheet or invoice processing platform, getting validation from a manager or CEO that the bill is legitimate, making the payment (via a bank), and entering all of this data again into accounting ledgers. If there are any issues with the invoice (spotted by the AP clerk), the invoice then goes back to the point of contact and then back to the supplier for changes. This is not usually a finance team member or accounts payable clerk, which means that this invoice has to be forwarded on. But there are usually multiple people involved, and there are plenty of opportunities for error.įor one, invoices are typically sent to the point of contact within a business - the user of the service. Which doesn’t sound all that complicated. At its most simple, the process involves receiving an invoice from a third party, validating it as legitimate, paying the supplier, and noting the payment in company records. What is invoice management?Īlso known as invoice processing, invoice management is the method by which companies track and pay supplier invoices. ![]()
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