The Importance of Automated Invoice Processing Software and Systems Manual invoice processing is a recipe for errors. Typos, misplaced decimals, or even missing invoices can wreak havoc on your finances. Studies show that businesses can lose up to lakhs annually due to invoice processing discrepancies. Transitioning to automated invoice processing can significantly reduce these errors, enhancing financial accuracy.
But these discrepancies aren't always innocent mistakes. In some cases, they can be a deliberate attempt at fraud. A seemingly minor error on an invoice can be a way to sneak in unauthorised charges, highlighting the importance of invoice processing automation for added security.
Benefits of Automated Invoice Processing for Startups For startups, where cash flow is king, these errors and fraudulent activities can be financially crippling. This is where a robust automated invoice processing system with built-in checks becomes crucial. These tools automate many of the tedious tasks involved in invoice processing, minimizing the risk of human error and safeguarding your finances.
But more importantly, they incorporate a series of checks that can identify potential discrepancies and even flag suspicious activity that might indicate fraud. Thus, the existence of these checks is a fundamental feature you should look for in your invoice automation software, ensuring both accuracy and security in your financial processes.
But which Invoice Processing checks do you look for in automated invoice processing system?
In this blog, we'll delve into exactly that as we discuss the top 17 invoice processing checks your Accounts Payable (AP) automation tool should have. These features are essential for ensuring the accuracy and security of your financial processes through effective invoice automation.
What are Invoice Processing Checks in accounts payable? Before we dive into what invoice processing checks to look for in your AP tool, it's important to understand what these checks are. So, let's define the term and explore how invoice processing automation plays a pivotal role in financial accuracy.
Invoice Processing Checks Definition Invoice processing checks are a set of automated controls built into your AP automation tool. They act as a safety net, meticulously examining each invoice against predefined criteria to identify any inconsistencies or irregularities. These checks play a critical role in ensuring financial accuracy through invoice automation system. The two key goals are :
Minimising Errors: By automating data entry and verification, invoice processing checks significantly reduce the risk of human error, such as typos or misplaced decimals during manual data input. This level of data capture and analysis is a key benefit of adopting invoice automation in your financial processes.Detecting Fraudulent Activity: These checks go beyond simple errors. They can uncover suspicious patterns or inconsistencies that might indicate an attempt at fraud. For example, an invoice processing check might flag an invoice from a new vendor with an unusually high amount, or one with mismatched product descriptions compared to the purchase order, showcasing the advanced capabilities of invoice processing automation.Think of invoice processing checks as a team of vigilant watchdogs constantly scanning your invoices for inconsistencies. They free up your accounts payable team from tedious manual verification tasks and empower them to focus on more strategic financial initiatives, thanks to the efficiency of invoice processing automation.
17 Checks you Should Look for In your Automated Invoice Processing Tool 1. Deduplication Duplicate invoices are a silent thief, capable of draining your startup's finances. These can be unintentional errors – a vendor accidentally sending the same invoice twice – or a deliberate attempt at fraud. Regardless of the intent, paying the same invoice twice can have a significant financial impact. Leveraging invoice automation and invoice processing automation can mitigate these risks.
This is where deduplication checks, a cornerstone of invoice automation and invoice processing automation, become your knight in shining armour. These built-in AP automation tools are designed to automatically identify duplicate invoices by meticulously comparing each incoming invoice against a database of previously processed invoices, based on various criteria.
Invoice Data:
Invoice number: This is the most basic check, ensuring no invoice with the exact same number is processed twice, an essential feature of invoice automation.Invoice Dates and Amount : While a slight variation in amount or date might not raise a red flag for a human reviewer, de-duplication checks, a feature of sophisticated invoice automation and invoice processing automation systems, can be configured to identify invoices with amounts falling within a specific range (e.g., +/- 10%) of a previously processed invoice with a similar date. This check ensures there isn’t any fraudulent activities by keeping track of previous payments and their details. Vendor Information: De-duplication checks, a fundamental aspect of invoice automation, can also compare vendor details like name, address, and tax identification number to identify potential duplicates. 2. Bank Verification Flag A well-designed AP automation tool, equipped with invoice automation and invoice processing automation capabilities, allows you to store approved vendor banking details. During invoice processing, the tool can check if the bank account information on the invoice matches the one on file for that vendor. Any discrepancies can be flagged for manual review, prompting you to verify the account information with the vendor before processing the payment.
This safeguard is crucial in preventing a specific type of payroll and vendor fraud.
If this check is not there, an employee might manipulate the system to include a bank account that doesn't belong to them. Since you wouldn't be able to track payments made to this unauthorised account, the employee could falsely claim they haven't been paid. By leveraging an AP automation tool with built-in verification measures, part of a robust invoice automation and invoice processing automation system, you can significantly reduce the risk of falling victim to such fraudulent activities.
3. The GST E-invoice Flag For organisations with an aggregate turnover exceeding ₹5 crore, it's mandatory to generate e-invoices for Business-to-Business (B2B) transactions and submit it to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice, and QR code to the user. This generation of a digitally signed e-invoice, facilitated by invoice automation and invoice processing automation, is necessary for further use on the GST portal for the business.
This requirement facilitates faster tax filing, reduces paperwork, and minimises the risk of tax evasion. It is a measure of compliance with GST regulations while reaping the advantages of a digital invoicing system, underscored by the benefits of invoice automation.
Here's how your invoice processing tool can help you ensure GST compliance with the e-invoice check, leveraging the power of invoice processing automation:
Automated Verification: A robust AP automation tool, enhanced with invoice automation capabilities, can be configured to automatically verify if an invoice from a vendor exceeding the ₹5 crore threshold has an e-invoice issued by the government. This verification process typically involves checking the invoice for the presence of a valid Invoice Reference Number (IRN) issued by the Invoice Registration Portal (IRP). The IRN serves as a unique identifier for e-invoices, guaranteeing their authenticity and compliance with GST regulations.Flagging Non-compliant Invoices: If the invoice processing tool detects an invoice exceeding the ₹5 crore threshold that lacks a valid IRN, it will flag the invoice for further investigation. This notification allows your accounts payable team to take necessary actions, such as requesting a proper e-invoice from the vendor before processing the payment, ensuring a smooth invoice processing automation workflow.Streamlined Compliance: By automating the e-invoice check, your AP automation tool streamlines your GST compliance process. It eliminates the need for manual verification of IRNs, saving time and minimising the risk of errors. This allows your team to focus on more strategic tasks while ensuring adherence to tax regulations, all thanks to the efficiency of invoice automation.4. Advance Payment Flag In scenarios with high-volume invoice processing, managing advance payments becomes crucial. There are partial payments made to a vendor upfront, often before the full service or product is delivered. While advance payments can be beneficial in certain situations, it's essential to ensure proper tracking and reconciliation to avoid confusion and potential errors, a task made easier with invoice processing automation.
Here's how your invoice processing tool can help you manage advance payments effectively through the prepayment check, utilizing invoice automation to enhance accuracy and efficiency:
Flagging Invoices with Bills Paid in Advance: A well-designed AP automation tool, equipped with invoice processing automation, can be configured to identify invoices where a prepayment has already been made. This check typically involves comparing the invoice amount against the total amount of advance payments recorded for that specific vendor and invoice. Any discrepancies can be flagged, prompting your accounts payable team to investigate before processing the full payment.Reconciling Advance Payments: Invoice processing tools can help streamline the reconciliation of advance payments. By integrating with your accounting system, the tool can automatically track and record advance payments made to vendors. This allows for easy matching of advance payments with corresponding invoices when they are received, showcasing the benefits of invoice processing automation.Effective prepayment checks safeguard your organisation from accidentally paying an invoice twice, especially in high-volume environments where multiple individuals handle payments. This is where the precision of invoice automation becomes invaluable.
GST Verification Checks in Automated Invoice Processing Verifying GST details is paramount for any business operating in India and while doing so there are 3 components to GST that must be verified by 2 different checks, a process simplified by employing invoice processing automation.
5. GST Rate Verification Matching Rates: A well-configured AP automation tool can automatically verify the tax rate applied on the invoice against the applicable GST regulations based on the vendor's location and the goods/services purchased. This comparison ensures the correct tax rate is used, preventing discrepancies and potential tax overpayments, streamlining the invoice automation process.Itemised Calculations: The tool can further verify that the total tax amount calculated aligns with the individual item prices and their corresponding tax rates. This detailed check minimises the risk of errors in tax calculations, safeguarding your organisation's finances, enhancing the efficiency of invoice processing automation.6. GSTIN Number Verification Mandatory Field: Your AP automation tool can be configured to enforce the inclusion of a valid GST Identification Number (GSTIN) on all invoices. This ensures you receive the necessary information to claim Input Tax Credit (ITC) on eligible purchases, a key feature of invoice automation.Regular Filing Check (Optional): While not all tools offer this feature, some advanced AP automation solutions can integrate with external databases to verify if a vendor is a regular GST filer. This additional check provides peace of mind knowing you're transacting with a compliant vendor, showcasing the benefits of invoice processing automation.By leveraging these GST verification features, your invoice processing tool becomes a valuable asset in ensuring accurate tax calculations and maximising your ITC claims, demonstrating the power of invoice automation.
7. Currency Checks In today's globalised business environment, dealing with invoices in various currencies is increasingly common. However, ensuring consistency in the currencies used for transactions with specific vendors is crucial to avoid confusion and potential errors, a challenge adeptly met by invoice processing automation.
Here's how your invoice processing tool can help you maintain currency consistency through dedicated checks, an essential component of invoice automation.
Identifying Discrepancies: A well-designed AP automation tool can be configured to compare the currency used on the invoice with the historical currency used for transactions with that particular vendor. Any discrepancies can be flagged, prompting your accounts payable team to investigate further, a testament to the sophistication of invoice processing automation.Validating Currency Conversions: While some invoices may legitimately involve currency conversions due to exceptional circumstances, unexpected conversions require close scrutiny. Your invoice processing tool can be set up to flag invoices with currency conversions that fall outside of your established purchasing agreements or standard practices with the vendor. This allows your team to verify the validity of the conversion before processing the payment, illustrating the critical role of invoice automation.By implementing currency consistency checks, your AP automation tool minimises the risk of errors caused by accidental or fraudulent currency discrepancies, safeguarding your organisation's financial health, a key advantage of employing invoice processing automation.
8. Vendor Information Check Maintaining accurate vendor information is crucial for efficient communication and fraud prevention. Here's how your invoice processing tool, enhanced with invoice automation, can support you in this area:
Vendor Contact Verification:
Matching Information: A well-designed AP automation tool, leveraging invoice processing automation, can be configured to compare the phone number and email address listed on the invoice with the established contact details for that vendor in your system. Any discrepancies can be flagged for further investigation by your accounts payable team. Flagging Generic Information: The tool, equipped with invoice automation capabilities, can also be set up to identify invoices with generic contact information, such as generic email addresses or non-descript phone numbers. These inconsistencies often raise red flags for potential fraud attempts.Line Item Verification:
Quantity and Unit Price: Your invoice processing tool, utilizing invoice processing automation, can perform a crucial check by ensuring the total amount for each line item on the invoice accurately reflects the product or service quantity multiplied by the unit price. This verification helps identify potential errors in calculations or discrepancies in pricing agreements.9. Payment Terms Check Payment terms outline the timeframe within which a payment is due. Maintaining clear and consistent payment terms with vendors is crucial for managing your cash flow effectively, a task made easier with invoice automation.
Here's how your invoice processing tool, enhanced with invoice processing automation, can help you ensure adherence to agreed-upon payment terms:
Automated Verification: A well-configured AP automation tool, utilizing invoice automation, can be configured to compare the payment terms listed on the invoice with the established terms for that specific vendor or the corresponding purchase order. Any discrepancies can be flagged for further investigation. Identifying Unconventional Terms: The tool, powered by invoice processing automation, can be set up to identify invoices with unusually short payment deadlines or those requesting immediate payment outside of the standard terms established with the vendor. These deviations can signal potential attempts to manipulate your cash flow or even fraudulent activity.By implementing payment terms checks, your AP automation tool, supporting spend management, empowers you in maintaining control over your cash flow as you are aware of all inflows and outflows that happen and can plan your cash position accordingly. It also helps in minimising the risk of fraud by flagging suspicious payment terms such as excessively short deadlines.
10. Goods & Services Details Check Clarity and transparency are key in any business transaction. This is especially true for the goods or services listed on invoices, where vague descriptions can lead to confusion, disagreements, and even potential fraud. Invoice automation can help ensure that every detail is clear and transparent.
Here's how your invoice processing tool, enhanced with invoice automation capabilities, can support you in ensuring clear and accurate descriptions of goods/services:
Matching Descriptions: A well-designed AP automation tool, leveraging invoice processing automation, can be configured to compare the descriptions of goods or services listed on the invoice with the corresponding details on the purchase order. Any discrepancies or inconsistencies can be flagged for further investigation by your accounts payable team. Identifying Vague Language: The tool, equipped with invoice automation technology, can be set up to identify invoices with vague descriptions or generic terms that lack specifics about the goods or services provided. This can help you avoid ambiguity and ensure you're paying for exactly what you ordered.By implementing the goods/services details check, your invoice processing tool empowers you to:
Maintain Clear Records: Having accurate and detailed descriptions on invoices ensures a clear audit trail and simplifies future reference or potential disputes, thanks to the precision invoice automation brings. Minimise Disputes: Clear descriptions help avoid misunderstandings regarding the nature of the goods or services provided, minimising the risk of payment disputes with vendors, a benefit of effective invoice automation. Reduce Fraud Risk: Invoices with vague descriptions can be a red flag for potential fraud attempts where the vendor might be trying to obscure the details of what they're charging for, an issue invoice automation can help address.11. Line Items Flag Sure, your invoice processing tool, enhanced with invoice processing automation, can perform a crucial check by ensuring the quantities and unit prices listed on the invoice accurately reflect the product or service quantity multiplied by the unit price. This verification helps identify potential errors in calculations or discrepancies in pricing agreements.
Here's a table summarising the common errors identified during invoice quantity and unit price checks:
Error
Description
Quantity mismatch
The quantity of an item on the invoice does not match the quantity on the purchase order, a discrepancy easily spotted with invoice automation.
Unit price mismatch
The unit price of an item on the invoice does not match the unit price on the purchase order, an inconsistency that invoice automation can help uncover.
Line total mismatch
The total price of a line item on the invoice does not match the quantity multiplied by the unit price, highlighting a need for enhanced invoice automation to prevent such discrepancies.
By implementing these checks, your invoice processing tool can help you:
Maintain Accurate Records: Ensuring accurate invoice quantities and unit prices is crucial for maintaining reliable financial records. This fosters smooth communication with vendors and simplifies future transactions, a core benefit of adopting invoice automation.Minimise Errors: Verifying invoice calculations minimises the risk of errors in invoice processing, safeguarding your organisation from overpayments or underpayments, thanks to the precision offered by invoice automation systems.In addition to the above, it's also important to be cautious of invoices with discrepancies in quantities or inflated unit prices compared to historical data. Significant deviations can signal potential pricing errors or even fraudulent activity, underscoring the importance of invoice automation in detecting such anomalies.
12. Internal Approval Workflow Check In many organisations, invoices require approval from designated personnel before processing. This ensures proper budgeting, adherence to spending limits, and verification of goods or services received, a process streamlined by invoice processing automation.
Here's how your invoice processing tool can support you with internal approver verification:
Automated Workflow: A well-designed AP automation tool can be configured to route invoices for approval based on predefined workflows, including approval routing. These workflows typically involve sending the invoice electronically to the relevant individuals within your organisation, such as department heads or budget managers, for their review and approval.Unauthorised Approval Detection: The tool can be set up to identify invoices with approvals from unauthorised individuals. This can help prevent fraudulent activity where imposters try to bypass the approval process, a critical feature of invoice processing automation.Missing Approvals Alert: The tool can also alert your accounts payable team if an invoice is missing required approvals from designated personnel. This ensures no invoice gets processed without proper authorization, thanks to the safeguards built into invoice processing automation.Additionally, some advanced tools can accommodate multi-level approvals:
Departmental Approvals: The invoice might require approval from the department that requested the goods or services.Budgetary Approvals: For invoices exceeding a certain amount, approval from a finance manager or budget authority might be necessary, a procedure that is efficiently managed through invoice processing automation.By implementing internal approver verification checks, your invoice processing tool empowers you to:
Maintain Control Over Spending: Enforcing proper approval workflows ensures adherence to budget allocations and minimises the risk of unauthorised spending, a key advantage of integrating spend management with invoice automation.Reduce Fraud Risk: Identifying invoices with unauthorized approvals or missing required signatures is crucial in leveraging invoice processing automation to safeguard your organization from fraudulent attempts to bypass internal controls.Improve Efficiency: Automated approval workflows, a key feature of invoice automation, streamline the invoice processing process by efficiently routing invoices to the right people for review and authorization.'Remember, a robust internal approval process is essential for responsible financial management. Utilizing invoice automation tools acts as an enforcer of these procedures, ensuring proper authorization and minimizing the risk of errors or fraudulent activity.
13. PAN Verification Check A well-designed AP automation tool can integrate with external PAN verification services offered by authorized entities like NSDL or UTI Technologies. This integration, a facet of invoice processing automation, allows for real-time verification of a vendor's PAN details during invoice processing.
Verification Process:
PAN Details Extraction: The tool can automatically extract the PAN number listed on the invoice. Verification Request: The tool then securely transmits the PAN number to the authorized PAN verification service provider, a seamless process facilitated by invoice automation. Real-Time Response: The verification service responds with a confirmation of the PAN's validity and status (active/inactive), along with additional details like the PAN holder's name (individual or business), showcasing the efficiency of invoice processing automation.Benefits of PAN Verification Integration:
Enhanced Security: Real-time PAN verification, a critical component of invoice automation, helps minimize the risk of fraud by ensuring the vendor's PAN details are valid and belong to a legitimate entity. Improved Compliance: By verifying PAN details, organizations can ensure they are transacting with compliant vendors, potentially fulfilling KYC (Know Your Customer) requirements, an important aspect of invoice automation. Streamlined Workflow: Automated PAN verification through the invoice processing tool eliminates the need for manual verification steps, saving time and effort for your accounts payable team, highlighting the benefits of invoice processing automation.Important Considerations:
Integration Costs: Integrating with external PAN verification services might incur additional costs. It's essential to conduct a cost-benefit analysis for your organization, considering the advantages of invoice processing automation. Data Security: Ensure your chosen invoice processing tool, equipped with invoice automation capabilities, employs robust security measures to protect sensitive PAN data during transmission and storage, enhancing the efficiency and security of invoice processing automation.By leveraging PAN verification integration within your invoice processing tool, you can significantly enhance the security and compliance of your financial transactions with vendors, thanks to the advanced features of invoice automation and invoice processing automation.
14. TDS Applicability Check Through this check, an AP software equipped with invoice automation can notify you if TDS is applicable on the transaction or not, thus leading to ease in payments and reduction of errors which often happens in case of TDS. Key points regarding TDS applicability in invoice processing automation are crucial for smooth operations.
TDS Applicability Threshold:
A buyer (deducting TDS) is required to deduct TDS at a rate of 2% on payments made to a resident supplier for taxable goods and/or services, a process streamlined by employing invoice automation solutions. This deduction applies only when the total value of the supply under an individual contract exceeds ₹2,50,000, a threshold easily managed through sophisticated invoice automation tools. How a TDS applicability check can help
Your invoice processing tool can be a valuable asset in managing TDS deductions by:
Identifying Applicable Transactions: The tool can be configured to automatically identify invoices exceeding the ₹2,50,000 threshold and flag them for potential TDS deduction, showcasing the power of invoice processing automation in simplifying financial operations. Considering Location Factors: Some advanced tools can integrate with geographical databases to determine the location of the supplier and recipient based on their pin codes or addresses. This can help assess if the interstate supplier exemption applies, a testament to the capabilities of invoice processing automation. Streamlining Calculations: The tool can automate TDS calculations based on the applicable rate and invoice value, ensuring accurate TDS deductions, a feature highlighting the efficiency of invoice processing automation.15. TDS Exemption Check Checking for TDS exemption is necessary and not doing so can lead to an opportunity cost of loss of savings, a scenario that invoice processing automation tools aim to prevent.
Interstate Supplier Exemption:
No TDS deduction is required if the location of the supplier (where the goods/services originate) and the place of supply (where the goods/services are received) are in different states from the state of registration of the recipient (buyer deducting TDS), a rule that invoice automation systems can help manage. Example:
A company registered in Maharashtra purchases office supplies worth ₹3,00,000 from a vendor located in Delhi, highlighting the need for efficient invoice automation to streamline such transactions. In this scenario, TDS would be applicable because:The supplier is a resident (India). The total invoice value exceeds the ₹2,50,000 threshold. The supplier location (Delhi) and recipient state (Maharashtra) are different. However, if the same company purchased supplies worth ₹3,00,000 from a vendor also located in Maharashtra:
TDS deduction wouldn't apply because the supplier and recipient are in the same state. How Automated Invoice Processing Tools Can Help? Your invoice processing software can be a valuable asset in managing TDS deductions by:
Identifying Applicable Transactions: The tool can be configured to automatically identify invoices exceeding the ₹2,50,000 threshold and flag them for potential TDS deduction, showcasing the benefits of invoice processing automation. Considering Location Factors: Some advanced tools can integrate with geographical databases to determine the location of the supplier and recipient based on their pin codes or addresses. This feature aids in assessing if the interstate supplier exemption applies, demonstrating the versatility of invoice automation. Streamlining Calculations: The tool can automate TDS calculations based on the applicable rate and invoice value, ensuring accurate TDS deductions through sophisticated invoice processing automation.Your automated invoice processing solution can be a powerful ally in simplifying TDS management and ensuring compliance, thanks to advanced automation capabilities.
16. Round Figures Flag Round-figure invoices, especially those lacking itemised breakdowns, can be a red flag for potential invoice fraud. Here's how your automated invoice processing software, can help you identify and investigate these suspicious invoices:
Detecting Round Amounts:
Automated Flagging: A well-designed invoice processing tool can be configured to identify invoices where the total amount consists primarily of round numbers. You can define a specific tolerance range (e.g., +/- 10,000) to account for minor variations that might occur in legitimate invoices, leveraging invoice automation to prevent fraud.Itemization Scrutiny: The tool can be set to analyse invoices with round total amounts and assess if they lack a detailed breakdown of items or services. The absence of itemization can further increase the suspicion of fraudulent activity, underscoring the importance of invoice processing automation.Benefits of Round-Figure Invoice Detection:
Fraud Prevention: By flagging round-figure invoices, your invoice processing tool can help you identify potentially fraudulent attempts where inflated prices might be hidden within a non-itemized total, showcasing the critical role of invoice automation in fraud detection.Improved Accuracy: Scrutinising invoices lacking itemization can help ensure you're paying for exactly what you ordered and at the agreed-upon prices, demonstrating the value of invoice processing automation in maintaining financial integrity.17. MSME Registration Verification For MSME companies with a typical credit period of about 45 days, it's crucial for your tool to verify if the company you're transacting with qualifies as an MSME and to ensure payments are made within this period for compliance. Integrating invoice automation and invoice processing automation features can streamline this process.
This is done through:
Data Integration (Optional): Leveraging advanced invoice automation tools that sync with government databases for real-time MSME registration verification can be a game-changer in ensuring you're engaging with a registered MSME, thereby optimizing your invoice processing automation.Manual Verification: You could also set up your invoice automation tool to prompt your accounts payable team to check the vendor's MSME status during the invoice processing phase, asking for a copy of the MSME registration certificate as part of the verification process.Credit Period Enforcement:
Automated Alerts: Your tool can be programmed to recognize invoices from registered MSMEs and automatically alert if the payment terms exceed the 45-day credit period mandated by the MSMED Act, enhancing your invoice processing automation.Compliance Workflow: Configuring your tool to guide the accounts payable team through a compliant invoice processing workflow for MSME invoices can significantly streamline operations. This includes invoice automation steps tailored to MSME compliance.Verifying MSME registration (if not already done). Negotiating payment terms to stay within the 45-day limit if an invoice suggests a longer period is a critical function that can be facilitated by effective invoice automation. Your tool should also be capable of flagging invoices for exceptions or recommending seeking legal advice if necessary, such as in cases where prepayment is required, showcasing the flexibility of invoice automation. Benefits of MSME Credit Period Check:
Compliance Assurance: By ensuring adherence to the 45-day credit period for MSMEs, your invoice processing tool not only aids in maintaining compliance with the MSMED Act but also helps in avoiding potential penalties, thanks to efficient invoice processing automation.Improved Cash Flow for MSMEs: Timely payments to MSMEs help in nurturing a healthier financial ecosystem and building stronger vendor relationships, a goal that can be achieved with robust invoice automation practices.Important Considerations:
Data Accuracy: If your invoice processing tool depends on external database integration for verifying MSME status, it's vital to ensure the data is current and reliable, highlighting the importance of a sophisticated invoice automation and invoice processing automation system.Manual Review: While automation, including invoice automation and invoice processing automation, is beneficial, it's crucial to implement a manual review process to address situations where MSME registration verification fails or exceptions to the 45-day credit period arise. This ensures a balanced approach to handling discrepancies.By integrating MSME credit period checks into your invoice processing automation tools, you're not just streamlining invoice automation but also showcasing your commitment to fair business practices and fostering the growth of MSMEs in India.
To Sum it Up Manual invoice processing is inefficient and prone to errors. Modern invoice processing automation solutions leverage a robust suite of checks to fortify your financial operations.
These checks, including deduplication, bank verification, GST compliance, currency validation, and internal approvals, meticulously scrutinize each invoice for discrepancies. This automation minimises human error, and fraud risk, and ensures regulatory adherence.
The result? Increased financial accuracy, robust security, and a streamlined AP process empowered to focus on strategic initiatives.
So automate and relax while your startup thrives.
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