When it comes to business administration, time is money. For this reason, it’s no wonder why any savvy business leader would seize the opportunity to save both time and money. Despite this fact, companies worldwide continue to spend 60% more than necessary on invoices while wasting hundreds of personnel-hours on manual data entries, year after year. Now more than ever before, invoice automation is critical to maintaining an edge in increasingly competitive global markets.
By observing trends in the construction industry, increasing competition is made especially apparent. Each year, fewer construction companies rely on invoice processing methods like paper, fax, or email. In an industry that traditionally adjusts slowly to changing administrative technology, firms that fail to adopt automatic invoice processing are at a significant disadvantage. With each invoice costing anywhere from $25 to $40, processing thousands of invoices can significantly increase business expenditures. Automation is twofold. Businesses can not only save time and money, but also increase focus toward their core competencies in the process.
1. More Effective Data Analytics
For years, Silicon Valley based companies have been harnessing the power of big data to make more informed decisions. As a result, companies within construction, finance, real estate, marketing, and more have a unique opportunity to better understand the forces driving their bottom lines. Thanks to invoice automation, information can be harnessed to help leaders guide company policy.
For example, the timeliness of invoice payments, administrative cost-per-client, and material cost-per-project could each be factored into the decision making process. In turn, invoice groupings, negotiations, and supplier selections could each be optimized to maximize profit potential. Additionally, data analytics for invoices can assist in lengthy internal audits. As a result, fraud, wasted spending, and incorrect entries can quickly be identified and remediated.
2. Streamlined Scalability
In any field (especially tech), major fluctuations in demand can necessitate rapid business scaling. As a result, invoice quantity could expand exponentially. What was once a minor administrative burden suddenly becomes a debilitating obstacle for companies. By implementing invoice automation, businesses within industries like construction, industrial architecture, engineering, and more can put themselves in a unique position to expand with limited growing pains.
3. Heightened Accuracy
Unfortunately, every business needs to account for human error in some capacity. In layman’s terms, people make mistakes. When mistakes are made, lost revenue, wasted personnel hours, and re-work are commonplace. To circumvent potential damage, automatic invoice accounting offers increased levels of accuracy. Not only does this capability improve internal functionality and operability, but it leads to a more professional reputation and relationship with contractors, manufactures, suppliers, and venders alike through limiting invoice reissuing.
Accuracy is especially important during business growth and scaling. Even the most experienced administrative personnel can quickly become overwhelmed by increasing demand. Despite neatly organized filing systems, mistakes are bound to happen. With automated invoice processing software, business volume can safely be increased without compromising accuracy.
4. Expedited Payments
Within industries like construction, turnaround times for contractor payments can take upwards of 60 days. As a result, cashflow becomes unwieldy to manage. By implementing an expedited invoice automation system, turnaround times can be cut in half. The end result is a more efficient system that pays key players and partners on an expedited timeline. Additionally, faster processing reduces required manning while improving accuracy. Here’s how:
When inaccurate information is propagated into an automated invoice processing software, flags are raised. In turn, user-validation is required. Instead of waiting for payments to be received, reviewed, and inspected by receiving parties or internal audits, problems can be addressed in real-time. With 24/7 monitoring, automated invoicing works while business teams are out-of-office. Additionally, invoices can be conveniently accessed on any date, from anywhere, at any time.
5. Increased Profits
Automated invoicing not only saves upwards of $15 per invoice using automated capturing, customized workflows, and automatic entry, but also reduces labor costs through automating the vast majority of would-be manual entries. The extent to which automation reduces manual workload can be better illustrated through an example:
The administrative department at Williams Construction maintains several physical journals, including their accounts payable, accounts receivable, and supply/ material books. For utilities, maintenance, equipment, salaries, contractor, and sub-contractor expenses, their accounting department manually writes the date, amount, and check number (if applicable). They record expenditures using their supply and material books, writing tool, material, and supply purchases with a brief description and monetary total. The remainder of their time is spent writing checks and tracking outstanding payments.
Although the example listed above relates to construction, the manual recording process discussed is relevant to any legacy accounting department. Although small operations may be able to effectively manage accurate records, scaling a business becomes exponentially more difficult when processes are not automated. Invoice management software such as Listo provides businesses with heightened levels of flexibility to adapt when scalability is necessary.
6. Improved Transparency
Business leaders in control of growing organizations face unique challenges. Although they may have been able to maintain control over the totality of their operations at one point, businesses become increasingly more difficult to manage as they grow. In turn, the invoicing process can quickly lose critical oversight. By integrating an automated system, business leaders can check up on their invoices in a moment’s notice. As a result, custom-tailored policies can be set, productivity can be monitored, and integrity can be maintained.
7. More Meaningful Focus
As businesses grow, employees and executives alike can easily become distracted by secondary efforts that do not directly support the core competencies of the business. To elaborate on this point, when businesses shift their focus away from bottom-line contributors in favor of administrative, accounting, or staffing efforts, business volume can suffer.
Automated invoice management helps businesses prioritize their efforts by seamlessly adapting to the unique workflow of any business. With accounting system connection, the full spectrum of invoice creation and verification can be integrated.
Closing Remarks
Automated invoice processing provides next-generation solutions for forward-leaning companies. When businesses integrate software like Listo, they put themselves in a better position to monitor data analytics, streamline scalability, improve invoice accuracy, expedite payments, increase profit earning potential, encourage transparency, and allocate appropriate focus to their core competencies.
Listo is an intelligent invoice processing software that automatically reads and sends invoices to the correct businesses and individuals. Best of all, Listo seamlessly integrates with accounting systems to post data. As a result, businesses are in a better position to reduce errors, wasted spending, and lost time due to errors and rework. Although Listo has a proven track record within the construction industry, businesses in any industry can benefit from the automated invoicing it provides.
If you’re a business leader who wants to reap the benefits of invoice software, consider reaching out to our team at Listo today. Signing up is easy. Additionally, we offer a free 30-day trial with full access that doesn’t even require a credit card.
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