In this blog post, we take a closer look at the well-known bottleneck problems in the invoice process and give you our input on how to address these issues.
TL;DRFive bottlenecks slow down most companies' invoice processes: manual data entry, multi-step approval delays, disconnected systems, non-standard invoice formats, and poor supplier communication. Acubiz and Compello together address all five by combining AI-driven invoice reading with automated approval workflows and ERP integration, targeting a state where over 90% of invoices are processed without manual intervention.
Unfortunately, we find that many companies have problems with the invoice process. This particularly happens when they do not take advantage of the opportunities to automate their manual processes.
Here are the five bottlenecks we most often encounter:
1. Manual Data Entry
Manual entry of invoices is an extremely time-consuming task which, besides being a waste of time, also carries a high risk of data entry errors that cost time and money while reducing efficiency.
2. Invoice Approval
The approval of invoices should be a relatively simple process but often involves multiple steps that can create delays and confusion if, for example, an approver is unavailable or on vacation. Challenges like these cost the company too much time and too many resources, potentially leading to invoices being overlooked and not paid in time.
3. Lack of System Integration
Manual or missing data transfers between systems that do not communicate is highly inefficient and creates chaos and confusion. On the contrary, it is much easier if all data is gathered in one place.
4. Lack of Standardisation of the Invoice Format
Another challenge for the invoice process is the lack of standardisation of the invoice format. The many different types of invoices require extra effort to interpret and process, resulting in poorer data quality and a higher risk of incorrect or missing data and information. This means more duplicative work and double-checking, while it also complicates automation.
5. Poor Communication with Suppliers
Issues with the invoice format and invoice requirements are not uncommon — especially from foreign suppliers who do not use the EHF format. However, the confusion that may arise due to this can delay the entire process, as incomplete or incorrect data can take a long time to rectify. Good communication and clear requirements for suppliers are therefore important for successful automation of the invoice process.
Automating the invoice process not only improves efficiency but also minimises errors and reduces the time and costs spent on them.
Imagine an invoice process where over 90% of invoices are automatically processed from receipt to payment without manual intervention.
With an integration from Acubiz and Compello, you get an automation of both your expense management as well as the management of your incoming invoices. This streamlines the administration of your expenses and provides better control and insight into the company’s finances.
Specifically, there are 5 steps you need to follow to achieve the highest degree of automation of the invoice process in your company. You can read more about them here.
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 most common bottlenecks in invoice processing?
Manual data entry, which is time-consuming and error-prone; approval delays caused by multi-step processes and absent approvers; lack of system integration requiring manual transfers between tools; non-standard invoice formats that require extra interpretation effort; and poor supplier communication resulting in incomplete or incorrect invoice data that must be corrected before processing can continue.
How can invoice approval become a bottleneck and what is the solution?
Approval bottlenecks occur when invoices must pass through multiple steps and a single absent or unavailable approver stalls the entire queue, leading to late payments and missed deadlines. The solution is configuring automated routing rules that send invoices directly to the right person based on supplier, amount, or category, with mobile approval capability so approvals happen even when someone is out of the office.
What is the EHF invoice format and why does it matter for automation?
EHF (Electronic Handels Format) is a standardized electronic invoice format used in Norway and Scandinavia that ensures consistent data structure. When all suppliers use EHF, the AI system can read and process every invoice with uniform accuracy. Suppliers who send PDFs or paper require additional AI interpretation, which the Compello system handles with up to 99.6% accuracy, but EHF is the ideal format for seamless automation.
What level of automation is achievable in invoice processing with the right technology?
With the Acubiz and Compello integration, the target state is that over 90% of invoices are automatically processed from receipt to payment without manual intervention. This requires clean supplier data, configured approval rules, and integration with the ERP system, but once in place, the finance team's role shifts from processing invoices to managing exceptions.