Author: Laura Bulmer
Juggling efficiency and managing risk simultaneously equates to finance teams needing robust tools to streamline workflows, automate tasks, and reduce costly errors. While finance systems are invaluable for tracking and managing financial data, many of them lack built-in tools for efficient data capture, especially when it comes to handling invoices.
This gap can leave companies dealing with manual data entry, delays, and missed opportunities for better cash flow management. However, invoice software like DocuWare can seamlessly integrate with existing finance systems to enhance their functionality and bridge these data capture gaps.
In this blog, we’ll explore how traditional finance systems fall short in terms of data capture, how invoice software steps in to fill these gaps, and why DocuWare is an excellent choice to complement your current finance software.
Finance systems are comprehensive tools designed to manage a company’s accounting, budgeting, and forecasting needs. These systems track everything from expenses and revenues to financial reports and compliance requirements. However, most finance systems are not optimised for handling the complex processes involved in invoice data capture, such as extracting data from invoices and managing approvals. This is where specialised invoice software becomes essential.
The below diagram demonstrates where and how a document management system fits in and enhances your existing finance systems.
Limitations of Finance Systems Without Invoice Software Finance systems are built to handle a wide range of financial tasks but often lack the specific functionality required for accurate and automated invoice processing. For example, without invoice software, a finance team may have to manually enter invoice data, which can be time-consuming and prone to errors.
Invoices often contain crucial data such as vendor information, dates, amounts, and item descriptions, all of which need to be recorded accurately. Manual data entry increases the risk of errors and slows down the entire accounts payable (AP) workflow, impacting the business's bottom line.
Efficient data capture plays a critical role in streamlining the invoice approval workflow. By capturing data accurately and quickly, companies can reduce delays in invoice processing, make informed financial decisions, and manage cash flow more effectively. Here’s why data capture is essential -
Faster data capture allows for timely payments, helping companies avoid late fees and take advantage of early payment discounts.
Without specialised invoice software, many finance systems lack the automated tools needed to capture this data accurately and efficiently, leading to bottlenecks and lost productivity.
The consideration of invoice software procurement can be a tricky one – does it fall to The Finance Leaders as a system for Finance or does it fall to IT as it is a piece of software? This blog addresses this question of Who Should Choose Your Accounts Payable Software?
Question about multiple VAT numbers: The company I work for has many entities and different VAT numbers and only one email address for invoices so it is quite complicated to implement invoice automation. We tried but didn't find a solution yet.
Answer: When supplier invoices arrive to one central email redirection rules in Outlook can be used to forward emails to different folders. The software can then monitor those folders and automatically pull the invoices into DocuWare, starting the categorisation process.
When indexing the document in DocuWare, we can include a mandatory index field called "business entity". This enables us to apply different rules and processes depending on which business entity the document refers to.
The system can capture the VAT number from the document and apply business rules and processes based on the numbers extracted.
If any of this information isn’t on the documents, the invoice software can perform look ups to databases in your finance package or other systems to help drive the workflow.
Those things haven’t been an obstacle to previous projects and we have existing installations servicing multiple business entities with complex VAT rules.
Invoice software is specifically designed to handle the complexities of invoice processing, from data capture to workflow approvals. Unlike traditional finance systems, which may only offer basic data entry tools, dedicated invoice software provides advanced features that make the entire process faster and more efficient. Here are some ways invoice software can fill the gaps in a finance system:
Invoice software uses optical character recognition (OCR) and other advanced technologies to capture data from invoices automatically. This technology reads invoice data, such as invoice numbers, amounts, vendor details, and payment terms, and uploads it directly into the finance system. Automation significantly reduces the time spent on data entry and minimises errors, ensuring data accuracy.
A good invoice software solution also includes workflow automation. This feature routes invoices to the appropriate personnel for review and approval based on predefined rules. Workflow automation speeds up the approval process and reduces the likelihood of delays, making it easier to keep track of outstanding invoices and payments.
Invoice software provides a detailed audit trail for each invoice, making it easy to track the entire approval process from start to finish. This level of transparency is crucial for regulatory compliance and ensures that every step in the process is documented for future reference.
By integrating with your finance system, invoice software can provide real-time reporting on invoice statuses, outstanding balances, and payment schedules. This helps finance teams gain a clearer picture of their financial standing and allows for more proactive cash flow management.
DocuWare is a highly capable document management and workflow automation solution that can seamlessly integrate with any finance system. It is designed to streamline invoice processing by automating data capture, managing workflows, and enhancing overall financial transparency.
DocuWare's data capture capabilities are powered by sophisticated OCR technology, which automatically extracts key information from invoices, such as vendor details, amounts, and line items. This information is then stored in a structured format, ready to be transferred to your finance system. By eliminating the need for manual data entry, DocuWare allows finance teams to process invoices faster and more accurately.
DocuWare’s customisable workflow approvals allow companies to create rules-based routing for invoices. For example, invoices can be automatically sent to specific approvers based on vendor, amount, or department. This level of customisation ensures that invoices are routed quickly to the right people, reducing approval time and helping companies avoid late payments.
DocuWare can be integrated with leading finance and ERP systems, providing real-time synchronisation of invoice data. This integration eliminates the need to manually transfer data between systems, ensuring that all financial information is up-to-date and easily accessible for reporting and analysis.
DocuWare’s real-time reporting features give finance teams access to valuable insights on invoice status, outstanding balances, and approval timelines. By having this data readily available, finance leaders can make more informed decisions about cash flow, budgeting, and financial strategy.
With DocuWare, companies can store all invoices and related documents in a secure digital environment. The software ensures compliance with data retention policies and regulatory requirements by creating an audit trail for each invoice. This secure storage and tracking system helps organisations reduce the risk of fraud and enhances accountability across finance teams.
Read more on how you can protect your business from invoice fraud in our latest blog here.
In a competitive market, businesses need every advantage to operate efficiently and make informed financial decisions. While traditional finance systems provide robust tools for general accounting tasks, they often fall short in the specialised area of invoice processing. Invoice software like DocuWare fills these gaps by automating data capture, streamlining workflows, and providing the transparency that finance teams need for effective cash flow management.
DocuWare enhances any finance system by bringing automation, accuracy, and efficiency to invoice processing. By integrating DocuWare into your finance system, you can optimise your accounts payable process, reduce manual workload, and gain real-time visibility into your company’s financial standing.
To remain competitive, companies need to ensure that their finance systems are optimised for efficiency and accuracy. By implementing DocuWare as an invoice software solution, businesses can bridge the gaps left by traditional finance systems and create a streamlined, automated process for managing invoices and approvals. The result is a more efficient, cost-effective finance operation that can scale with your business.
If your finance system lacks data capture and automated workflows, consider enhancing it with DocuWare. The benefits of time savings, cost reduction, and improved cash flow make DocuWare an invaluable addition to any finance setup looking to simplify and improve invoice processing.
DocTech have provided the DocuWare solution for almost 30 years and have multiple DocuWare Case Studies. We would be pleased to have a discussion with you on your current systems and the gaps you have and need addressing in terms of managing risk whilst staying efficient handling incoming supplier invoices
Contact The DocTech Team here to arrange a conversation or you can call 0161 647 7040.
