{"id":17141,"date":"2022-12-10T12:53:05","date_gmt":"2022-12-10T12:53:05","guid":{"rendered":"http:\/\/envoice.eu\/?p=17141"},"modified":"2025-06-26T15:48:21","modified_gmt":"2025-06-26T15:48:21","slug":"invoice-approval-automation-simplified","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/invoice-approval-automation-simplified\/","title":{"rendered":"Invoice Approval Automation Simplified"},"content":{"rendered":"

Invoice approval automation solves the biggest problem in Accounts Payable – approvals that take too long [1].<\/span><\/p>\n

Paying bills on time is vital to running a successful business. Whether you provide goods or services, you need to optimize cash outflows to boost revenues.\u00a0<\/span><\/p>\n

Suppliers, for instance, will not deliver goods to your retail shop if you have a past-due account. Your revenue suffers as a result since you have fewer items to sell. Striking the right balance between increasing revenues and reducing expenses is vital for managing any business. In fact, CFOs prioritize better cash cycle management and faster access to working capital.\u00a0<\/span><\/p>\n

Before achieving these goals, companies should address the issue of long waiting times for approval that plague 57% of companies.\u00a0<\/span><\/p>\n

A Smarter Approach to Invoice Approvals<\/b><\/h2>\n

Invoice approval automation uses intelligent technology like AI and machine learning to eliminate the manual work required when processing invoices. Often, automation results in a paperless office, but it goes beyond going paper-free.<\/span><\/p>\n

Automation removes tedious steps like data entry and manual routing of invoices for approval by putting all invoices in one workflow.<\/span><\/p>\n

Why Manual Invoice Approval Processes Are Inefficient<\/b><\/h2>\n

Manual invoice approval workflows<\/a> are time-consuming because many steps are involved.\u00a0<\/span><\/p>\n

Here’s a typical invoice approval process.<\/b><\/p>\n

    \n
  1. Receive a paper or electronic invoice from the supplier. Enter invoice information like payee, amount, quantity, and details into the system.<\/span><\/li>\n
  2. Check the validity of the invoice and the vendor payment information indicated in the statement. Determine if the invoice complies with the company\u2019s expense policy and note any exceptions.\u00a0<\/span><\/li>\n
  3. Match invoice received against the purchase order, delivery receipt, or other supporting documents related to the purchase. If there are discrepancies, the accounts payable team needs to reach out to the supplier to resolve the issue.\u00a0<\/span><\/li>\n
  4. Identify and resolve discrepancies and investigate the reason for invoices that do not comply with the expense policy.\u00a0<\/span><\/li>\n
  5. Request for invoice approval by forwarding a copy to the approver.\u00a0<\/span><\/li>\n
  6. Pay the approved invoice.\u00a0<\/span><\/li>\n
  7. File invoice-related information.\u00a0<\/span><\/li>\n<\/ol>\n

    On average, it takes <\/span>39 minutes to process invoices<\/b> from data entry to approval.[3] This doesn\u2019t account for delays like approvers being out of the office or on vacation.\u00a0<\/span><\/p>\n

    \"women-working-together-at-an-office\"Pexels<\/span><\/i><\/p>\n

    When invoices are not approved immediately, employees must follow up, creating more work. Bottlenecks in approving invoices may lead to missed opportunities for taking advantage of early payment discounts, late payment fees, interest and penalties.\u00a0<\/span><\/p>\n

    How Does Automated Invoice Approval Work?<\/b><\/h2>\n

    Automating invoice approval transforms how companies approve payments for bills and expenses. Let’s take a look at how automation can change the process of approving an invoice.\u00a0<\/span><\/p>\n

      \n
    1. Capture invoice data using the Envoice app. Upload an invoice to the app, forward invoices to a dedicated inbox, or snap a photo of your receipt. Push information captured through the app to an integrated accounting software with the click of a button.\u00a0<\/span><\/li>\n
    2. Review extracted data for accuracy or take advantage of the <\/span>ExactExtract<\/span><\/a> feature to add human validation to the process.\u00a0<\/span><\/li>\n
    3. Match invoice data with purchase orders, delivery receipts, and other supporting documents.\u00a0<\/span><\/li>\n
    4. Investigate discrepancies and items flagged by the software. Envoice allows you to set up rules based on your expense policy by flagging invoices that fall out of the acceptable range. With this feature, you can focus on resolving the cause of discrepancies rather than looking for them. You can also add supplementary information and notes related to the invoice in the comments section to reduce back-and-forth communication with approvers and reviewers.\u00a0<\/span><\/li>\n
    5. Send invoices for approval through the software.\u00a0<\/span><\/li>\n
    6. Pay the invoice.\u00a0<\/span><\/li>\n<\/ol>\n

      While steps in an automated process appear almost identical to the manual process, your accounting team will have a lighter workload.\u00a0<\/span><\/p>\n

      Using automation eliminates manual keying of information so your staff can focus on reviewing data and investigating discrepancies.\u00a0<\/span><\/p>\n

      Having all invoices in one workflow also improves visibility and transparency in the accounts payable process. When someone asks for the invoice status, it only takes a minute to check where it is in the automated invoice approval workflow.\u00a0<\/span><\/p>\n

      With invoice approval automation, invoices are easier to track, manage, and address. According to Levvel Research, the top benefit of using accounts payable software like Envoice is faster approval of invoices.[2]\u00a0<\/span><\/p>\n

      Is Invoice Automation Cost-Effective?<\/b><\/h2>\n

      Automated workflows improve the productivity of your accounting department and eliminate paper invoices, but does it make financial sense?<\/span><\/p>\n

      \"WomanPexels<\/span><\/i><\/p>\n

      According to Ardent Partners, <\/span>yes, automation makes a difference<\/span><\/i>.<\/span><\/p>\n

      Best-in-class companies only spent $2.25 per invoice, while all others spent a whopping $10.95 per invoice. Top performers reduced costs by 80% by focusing on core processes and leveraging ePayables solutions<\/span><\/p>\n

      It takes a high level of maturity to achieve the same cost savings as these companies but automating invoice approvals is a start.\u00a0<\/span><\/p>\n

      How Automation Drives Cost Savings\u00a0<\/b><\/h2>\n

      An automated invoice approval workflow helps you cut costs through the following.<\/span><\/p>\n