Invoice processing can be a burdensome part of your daily business operations. A high volume of paper invoices can drive your costs through the roof and limit your company’s ability to scale up its operations. The oil and gas industry faces unique challenges in invoice processing. The need to coordinate with multiple suppliers and operators presents additional challenges to businesses trying to keep up with a growing number of invoices.
By establishing a more efficient invoice processing mechanism that incorporates technology, you can achieve reduced costs. But it doesn’t stop there; you can also gain improved visibility in cash management, and the potential to scale up your operations due to the ability to handle more invoices with a higher level of efficiency.
There are three key areas through which you can streamline your invoice processing with noticeable results.
- Automation Software
Using automation software is the most important enabler to process your invoices with increased efficiency. Having a software-based accounting system that automates workflows and facilitates electronic document exchange among stakeholders is essential toward achieving streamlined invoice processing.
Incorporating software and automation in invoice processing also allows your company to improve its workflow efficiency and reduce errors and delays in the invoices themselves. Automation reduces the processing cycle of invoices and approves them by adhering to the financial controls.
In addition, the accounts receivable software maintains an engaged buyer network that uses the platform to send electronic invoices to your business, making it much easier to manage your buyer network and to receive accurate, timely payments.
- Avoid Duplicate Entry
The double entry of invoices can present complications to accounting and bookkeeping practices within your business and are an extra burden on suppliers. Duplicate entries often lead to more data entry procedures and delayed or inefficient business processes. To streamline your invoice processing, you need to implement a system that prevents duplicate entries of invoices. OpenInvoice Supplier Link works by connecting a supplier’s current invoice processing application to the OpenInvoice system. It allows you to process your invoices under a common platform and to validate them against customer specifications and submission guidelines.
You can send your invoices through QuickBooks into the OpenInvoice Supplier Link system to eliminate duplicate entries and streamline business processes. If you aren’t using QuickBooks, you can bulk upload invoice files from just about any accounting platform that has an export option.
By connecting external accounting systems with OpenInvoice, suppliers can identify incorrect invoice data incompatible with customer specifications. You can use real-time data validation on all invoices you import through Supplier Link. In turn, you can correct issues in advance to avoid customer disputes and dissatisfaction.
The use of software and automation in invoice processing also reduces the likelihood of duplicating invoice entries and paying for the same invoice twice.
- Itemized Invoice Entries
Broad and vague invoices are a sure way to end up with dissatisfied customers and a host of billing disputes. Your customers want to know what they are being charged for and why. Therefore, having an itemized invoice with descriptions of goods and services offered allows for your clients to keep track of the costs they incurred. Itemized invoices also make it easy for you to analyze the specific products and services that are in high demand from your business. In other words, itemized invoices provide unique insights into customer tastes and preferences.
Itemized invoices also encourage timely payments from customers due to the increased confidence they have in your process. The use of software can allow you to develop standardized and itemized invoices that make processing easier and more efficient.
A properly itemized invoice has more than just a single line that mentions the product or service that you delivered. It is detailed, with specific sections that mention the product or service rendered, the quantity, add-on services, or unique dimensions. As part of automating invoice processing, the invoice design should incorporate space for accurate itemized entries that enable customers to keep track of everything that is included on their billing statement.
How do I Start?
Streamlining your invoice processing is a critical step toward increased operational efficiency, cost savings, and business expansion. It is important for companies to incorporate software and automation when processing invoices. Avoiding duplicate entries and generating itemized invoices are equally essential to creating an invoice process. All these steps can be made possible through the use of an efficient and effective software-based accounting system.