What is an invoice management platform and why should you invest in one?
Entrepreneur.com reports that across the United States, small businesses are owed $825 billion in unpaid invoices. That comes out to about $84,000 in unpaid invoices per company.
That’s not all but the majority of small businesses also have to wait up to 21 days to receive payment. This puts these enterprises in very precarious cash flow positions. And with 29.6 million small businesses employing nearly half of the entire American workforce, getting paid on time is a matter of survival.
This is where invoicing technology comes in.
One of the first steps to getting paid on time by partners (and also paying your vendors in a timely fashion) is to have dependable invoice management software.
So, what is invoice management software anyway? Let’s dive right in.
What is an Invoice Management Platform?
An invoice management platform is an online business system that handles invoices issued by vendors and suppliers.
One way to look at invoice management software is as a tool that automates your invoice processing and makes the invoice lifecycle as easy as possible.
Invoice management software is one of the best ways to empower your accounts, payable teams.
If you want an agile finance department that’s able to capture, code, approve, and pay invoices within a reasonable timeline then you simply must invest in some sort of invoice management system.
In order to better appreciate the pros of investing in such software let’s take a look at the benefits of invoice management systems.
Benefits of an Invoice Management Software System
There are many benefits to be derived from using such an invoice management platform. For starters, an invoice management platform can drive efficiency and decrease time spent on invoicing tasks. But that’s not all, here are four additional advantages:
Faster Invoice Processing
When invoices can be automatically captured, coded, and sent for approval it serves to speed up the invoice management lifecycle. Automation of the invoice management process via an invoice management platform means verification and approvals are given in record time. Furthermore, accounts payable teams can also authorize and clear said invoices faster.
Invoices Sent to the Right Person
How many times is the invoice sent to the wrong person within the accounts payable department and this leads to unnecessary delays in the clearance of invoices? More often than people would like to admit. With a dedicated invoice management platform, this can be a thing of the past.
Payments Can Be Done Within the Invoice Management Platform
Most invoice management platforms provide users with the ability to pay from within the system. So, instead of clearing vendor payments via ACH or paper checks, everything can be conveniently done online, in the ERP in a matter of minutes
Centralized Archive for Audits
Nothing is as frustrating for many finance departments as tax season. Fortunately, when working with an invoice management platform you can store all your invoices in the archives, and when it’s time to audit and prepare for tax season the invoices can be retrieved easily.
How to Choose The Right Invoice Management Platform
Invoice management platforms aren’t created equal. So, what can you do to ensure you’ve selected the right one? What should you be looking for exactly when shopping for an invoice management platform?
Firstly, you want to keep an eye out for a solution that’s intelligent, pragmatic, and provides a seamless invoice management experience.
Here are some tips for selecting a suitable invoice management platform.
Tip #1 Choose a Platform that Provides a Customized Invoice Management Experience
Your chosen invoice management platform must be customizable. Providing your users with a tailored invoice management experience. Everyone from accounts payable staff to vendors should have a pleasant experience when engaged with the platform. An invoice management platform with a steep learning curve will only serve to frustrate everyone who is a part of the invoice lifecycle.
Tip #2 The Platform Must Have an Inbuilt Communication Channel
Visibility is key for approvers, controllers, vendors, and anyone else invoiced in the invoice process. Keeping track of communication via email chains can be cumbersome and tedious. Your preferred invoice management platform should ideally have an inbuilt communication function enabling all stakeholders to converse on one centralized platform.
Tip #3 The Invoice Management Platform Must Integrate Seamlessly Into Your Existing ERP
A lot can be said about investing in an invoice management platform that can integrate into your current ERP and accounting system. Why is this important? Simply put, most organizations don’t have the time or resources to train teams on how to use new software. Therefore, you want an invoice management platform with seamless integration and a low learning curve.
Get The Solutions You Need Today
There is no doubt that invoice management software can be revolutionary for accounts payable departments and vendors. Not only can automation facilitate easier invoice capturing and coding but can make invoice approvals much faster.
Integrating an invoice management platform into your existing ERP can boost efficiency and speed up the invoice lifecycle.
As procurement experts, we understand the need for software that’s both robust and intuitive. We offer a suite of solutions from contract management software right down to RFx solutions.
That’s why ProcurePort is touted as one of the leading procurement solutions providers. We’re trusted by enterprises and organizations such as UNOPS, HUD.GOV, and conEdison.
To discuss procurement software with a consultant or to schedule a demo of our solutions, contact us today.