A Sigitek AI ML Platform

Why digitalize the invoicing process?

  • Home
  • blog
  • Why digitalize the invoicing process?
blog image

Invoicing is still a manual process for most companies, to the disappointment of financial departments. Switching to digital invoicing has the potential of many benefits, such as increased productivity, financial savings and job satisfaction. 

Invoicing today

At present, invoicing is still a mostly manual process. Some call it the “Achilles heel” of finance, that is desperately trying to keep up with the digital transformation of companies.

In terms of digital maturity, two figures are particularly striking:

  • Most financial department processes (including managing and processing invoices) are still carried out manually (up to 30%).
  • More than two thirds of supplier invoices are received via “manual” methods, such as delivery by hand (15%), fax (10%), post (20%) and email attachments.
  • The impacts of this cannot be ignored: 43% believe that this can affect the efficiency of the entire business, 37% worry that suppliers do not want to co-operate with them and 19% think that that finance department is negatively perceived by other departments within the company.

Finance has a major challenge on its hands. It is not only one of the most reluctant departments to accept this digital transformation, but also the one where it is most needed.

With this in mind, a main objective emerges for 85% of survey respondents: to accelerate and improve manual processes.

Data entry of invoice and bills is probably the Data entry of invoice and bills is probably the first step in any accounting process. Even today, many organisations do it manually. Manual operations are prone to introducing errors resulting in unnecessary rework

Some organizations see manual data entry as a cheap way of processing documents. They don’t need to bother with the costs of software implementation, deployment, and maintenance. There’s no need to train employees to use new programs, since data entry is something that anyone with a brain, an eye, and a finger can do. You don’t even have to hire new staff or outsource the task – just add it to a few people’s to-do-lists. It’s so easy, you can do it yourself!

This is where we enter the territory of diminishing returns. The more manual data entry your company is doing, the more it’s costing you over time.

Good Reason To Bring Digitization in Accounts Payable Process

  • Over time, digitizing invoices primarily means improving the daily lives of the teams and making time for them to complete tasks with greater added value such as general process improvements and looking for solutions and opportunities to reduce costs.
  • Improving job satisfaction (97%): For 60% of respondents, invoicing is the task they hate most at work.
  • Improving productivity (65%)
  • Reducing paper consumption within the department (65%): The Finance department uses more paper than any other department in the company.
  • Identifying cost savings (50%)
  • Reducing errors: 12.5% of invoices contain errors made by staff working in the Finance department, while 14% of manual errors come from the supplier

Its time to bring Automation in SAP, through Sigitek SAP AutoSim. A SAP Product by Sigitek Software Service to bring Automation in Supplier Invoice Processing in SAP