Business is all about documentation. At every step of the business, it generates documents. Quotations, contracts, purchase orders, invoices, receipts, and whatnot. Invoice can surely be named as the most happening document in business. Almost every business, irrespective of its size, draw or receive invoices. While it is true that invoices are the most used commercial document, it is also true that they are among the most challenging document for a business as well. From supplier to the organization, everyone comes across multiple challenges during manual invoice processing.
Let’s take a closer look at the common challenges of manual invoice processing:
- Error-Prone Process
- Workload Intensive Process
- Unnecessary Costs of Process
- Delays In Process
- Hampered Productivity
- Lost/Missing/Duplicate/Fake Invoices
- Higher Process Cost
- Transparency/Trust Issues
- Tracking/Monitoring Issues
- Reconciliation Issues
The manual invoice comes through multiple channels. Invoices may be coming from fax, e-mail, snail mail, courier, etc. Handling these multiple channels is quite a task. This is where the earliest errors can happen, making the rest of the process faulty from the beginning. Here is the place where most of the invoices get lost.
Workload Intensive Process
Manual invoice processing requires a lot of steps, human resources, and documentation. All these factors make the invoice journey longer and slower. This causes delays in the invoice approval, recording, and payment making them unnecessarily lengthy and irritating.
Unnecessary Costs of Process
As mentioned earlier, the manual invoice processing journey is quite long and involves multiple steps. All of this comes with a material cost. This cost can increase to multifold, depending upon the size and volume of the business.
Delays In Process
Manual invoice processing involves multiple steps and people. Each of these adds up to the delay in the process. Whenever a human resource is involved, there can be unnecessary delays like the absence of the specified person, slower response, lingering on the process, and much more. It is also noteworthy that every step in the manual invoice process even with its utmost efficiency is inherently slow.
Manual invoice processing is time-consuming. Every human resource involved in the process has to go through a tedious procedure wasting a lot of time and causing lower productivity. Hectic revision, approval, and This lead to low performance and poor output for a business.
Manual invoice journey with its long, tedious and multi-point nature leads to multiple invoice problems. Sometimes invoices are lost before entering into the system and sometimes they go missing during the process. There are instances of duplicate invoices as well as fake invoices making through the system causing monetary losses.
Higher Process Cost
Manual invoice processing inherent higher cost of operation which is impossible to be reduced significantly due to multiple factors. These factors mainly consist of time and human resources. While remaining unautomated, most of these costs are unavoidable.
All of the manual invoice processing operations are offline. Due to this lack of transparency, all the concerned parties have trust issues with each other.
As mentioned earlier the manual invoice processing operations happen offline. This is why the concerned parties can’t track and monitor the process. This makes it difficult for a supplier or a third party like a financing institution to get the exact status of the instrument.
As there are separate offline records with all the concerned parties, So it is very tedious to reconcile in case of any discrepancy. These discrepancies also lead to wrong tax declarations.
All of the above issues are inherent in a manual invoice processing ecosystem. Very little can be done about them while living with a manual invoice processing system. Few of these issues can be minimized but only with a significant addition to the cost and resources. The only viable solution to these problems is to adopt an invoice automation solution. InvoiceMate is an invoice processing solution that can help you in effectively addressing the invoice processing challenges.
InvoiceMate is the future of Invoice Processing. It is the first and the only invoice management solution which is built around blockchain. InvoiceMate offers an end-to-end solution that covers the whole journey of Invoice processing on the blockchain.
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