How to Automate your Invoice Processing

Want to know more about why you should automate your invoice processing? Read on here.

TL;DRAutomating invoice processing follows a five-step path: digital receipt via EHF or AI-powered scanning, automated validation with smart routing rules, AI-driven posting and purchase-order matching that cuts processing time by up to 70%, ERP integration for real-time updates, and payment automation. Compello, Acubiz's partner for invoice management, offers more than 40 ERP integrations including Microsoft, Visma, SAP, and 24SevenOffice.

The Benefits of Automating

• Increases efficiency and saves time
• Provides greater accuracy and fewer errors
• Reduces costs
• Frees up employees for other meaningful tasks
• Makes it flexible and easy to scale
• Collects data and provides valuable insights

How to Do It – Step by Step

It is one thing to talk about it. It is another to do it in practice. Here are five steps you need to go through to automate your invoice processing.

Step 1: Digital Receipt of Invoices

The invoice process starts as soon as the invoice arrives. You can save a lot of time and avoid hassle if you automate the receipt.

• Ask your suppliers to send invoices in EHF-format. It ensures correct structure and makes data easier to read.
• Still using PDF or paper? Compello uses AI to scan and interpret all types of invoices – with up to 99.6% accuracy.
• The system automatically extracts data such as amounts, KID, account numbers, invoice dates, and invoice numbers – eliminating manual entry.

Step 2: Automated Validation and Approval

Once the invoice is received, it needs to be validated and approved a process that often creates bottlenecks, but which can be highly automated.

• Set up “smart rules” to automate validation. For example: “If supplier = X and amount below 5,000 kr. then send directly for approval.”
• Use features like serial approval and amount limits, so invoices automatically reach the right people in the organisation.
• Approvals can happen directly via mobile – so it does not become a bottleneck if someone is on vacation or working from home.

Step 3: Posting and Matching

Now the invoice needs to be accounted for and posted – an area where automation can reduce processing time by up to 70%.

• Use PO-match to match invoices with purchase orders down to the line level.
• With reference checks, you can, for example, link the invoice to a vehicle registration number, a power number, or a specific project.
• Auto-accounting with AI automatically selects the correct account based on historical data. It saves both time and correction errors.

Step 4: Integration with ERP and Financial Systems

A strong integration between the invoice solution and financial system ensures that the automation does not stop at approval but continues all the way to posting.

• Compello has more than 40 integrations, including with Microsoft, Visma, SAP, and 24SevenOffice.
• Use API integrations to ensure real-time updates and avoid file exchanges, double entries, and versioning issues.
• When an invoice is approved and posted, it is automatically sent to your ERP-system, without anyone having to lift a finger.

Step 5: Continuous Evaluation and Optimisation

Automation is not just something you implement once. It requires ongoing adjustments to reach an automation level of 90%+, which the most efficient companies achieve.

• Monitor the degree of automation via the dashboard it shows how much of the process that runs automatically and where there is room for improvement.
• Measure processing time, error rates, and bottlenecks. Use insights to adjust rules, master data, or supplier formats.
• Continuously update your workflows  and standardise invoice formats by asking suppliers to send in EHF.

Want to Experience It in Practice?

Europris achieved an automation level of 93% by following the above steps freeing up valuable time in the finance department for more important tasks.

Contact us below if you want to automate your invoice processing and achieve similar results!

Do you want to know more?

Contact us if you want to know how we can help your business or book a free online demo to learn more.

Frequently Asked Questions

What are the five steps to automating invoice processing?

Step one: digital receipt, ideally in EHF format, or AI scanning of PDFs with up to 99.6% accuracy. Step two: automated validation and approval using smart rules and mobile approvals. Step three: automated posting and PO-matching, which can reduce processing time by up to 70%. Step four: ERP integration for seamless data flow. Step five: payment automation to complete the process without manual bank transfers.

How accurate is AI-based invoice scanning compared to manual data entry?

Compello's AI invoice scanning achieves up to 99.6% accuracy in extracting key data including amounts, KID numbers, account numbers, invoice dates, and invoice numbers from PDFs and paper invoices. This is significantly more accurate than manual keying, which is prone to transcription errors and requires correction time that the AI approach eliminates.

What is PO-matching and how does it save time in invoice processing?

Purchase order matching automatically cross-references an incoming invoice against the corresponding purchase order down to the line level. If the invoice matches the PO within configured tolerances, it can be approved and posted without manual review. This is one of the highest-value automation steps, capable of handling the majority of invoices from regular suppliers without any human involvement.

Which ERP systems does the Compello invoice automation solution integrate with?

Compello has more than 40 integrations including Microsoft Dynamics, Visma, SAP, and 24SevenOffice. These integrations use APIs to ensure real-time data updates rather than file-based transfers, which means invoice data flows into the finance system continuously rather than in batches, improving reporting accuracy and reducing the risk of duplicate entries.