Invoice Capture And Approval Workflow: Understanding The Challenges

There are many challenges involving the capture and approval of invoices. The process itself takes multiple turns especially if it’s streamlined well with the use of multiple AP software solutions. If you are presented with the challenge of having to receive, verify, and track multiple invoices, knowing how to deal with certain situations will be helpful to ensure success.

Before anything else, you have to know what an invoice is and why it’s important in keeping a business on the up and up.

What is an invoice?

An invoice is a bill sent to the company by their vendor for the assets that they provided. These assets can vary, but the two most common are services and products. Each invoice will contain a variety of key information including the date the assets were delivered, who confirmed the delivery, and how much needs to be paid. Understanding where to look and why you should look there is important in keeping the workflow seamless.

What do you do with an invoice?

When you hear the term invoice, you go straight to thinking about payments. Though this may be the case for consumers when they buy products from retailers, it’s quite different for business working with other businesses. It takes time and, more importantly, money to process an invoice. The effort that is exerted by the workforce of a company is paramount in keeping everything smooth. To minimize the errors that could come from tired employees, many businesses look towards different AP software solutions such as automation to handle invoices for them.

What goes on when you capture and approve an invoice?

Capturing an invoice is essentially verifying the information that’s on it. It’s important that every detail is checked for accuracy and that the invoice itself is not lost or duplicated in the process. To isolate the important information that you need to know, you can use a software to extract the data to easily readable bullet points. The records that you should always look for include:

The date of creation and submission of the invoice

The contact information of the supplier and what to do in the case of errors on their side

The information regarding the services, products or other assets that were received by your company

The guidelines on payment including how much is owed, when to send it, and to whom

When you’ve verified the information found on the invoice, you can then approve it. Using a reliable AP software, you can track this entire process as it goes through different departments in your company.

No company should have a one man job when it comes to invoices. Someone who knows about the assets and how to verify it should not be the same person who has to approve the balance stated on the invoices. This creates for confusing situations which may lead to multiple errors along the way.

The sooner you address the challenges that your company experiences, the better it will be for the accuracy of the accounting records.
Not all AP software solutions are made equal but we are sure that our AP solution at Network Systems can help improve your AP system. Contact us today for more info.

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