Invoice matching is a crucial checkpoint in the financial processes of a business. However, for many finance teams, this means repeatedly checking invoices against purchase orders, which often feels draining and frustrating. Fortunately, there is a faster way to get this task done. By embracing current automation technology, teams can automate invoice matching, freeing them from extra paperwork that consumes too much time.
Automating invoice matching brings various benefits you didn’t know you needed. From accelerating payment cycles to reducing manual mistakes, it is a solution for teams to work smarter. In this article, we will answer every question around invoice processing automation to guide you through how it works, its benefits, and its implementation.
What is invoice matching?
A: Invoice matching is the process of verifying that the details on an invoice align with other related documents, commonly purchase orders and delivery notes. This process aims to ensure that payments to vendors are made only for goods or services that were requested. There are several methods of invoice matching, depending on business needs
- Two-way matching: Compares invoices with purchase orders to verify quantities, prices, and terms.
- Three-way matching: Compares invoice with both purchase orders and the delivery notes to ensure the goods or services were actually received.
- Four-way matching: While this is less common, it includes an additional check, such as an inspection to see if the goods received meet the required standards.
Why is it time to automate invoice matching?
A: Today’s business landscape is getting more competitive, and many of your competitors might have already switched. Relying heavily on manual invoice processing can hinder operational efficiency and is prone to costly mistakes. Now is the best time to start automating repetitive tasks like invoice matching to speed up processing and operate more efficiently.
How does automated invoice matching work?
A: Automation makes routine invoice processing more streamlined and easier to manage. Here’s what automated invoice matching looks like, step by step:
- Data ingestion: The process begins with automated data extraction of all important details in invoices, purchase orders, and other required documents.
- Data verification: The extracted data is then checked and compared to ensure every information matches with the related orders and other corresponding documents.
- Data integration: After approval, the verified data is sent into the business management system for record-keeping and the next process.
Is manual review still needed with automation?
A: While the system extracts, matches, and verifies most data automatically, the role of human-in-the-loop remains important. Teams can oversee the process and approve the final information before it is transferred into the business database to ensure accuracy and maintain reliability.
How can a business get started with invoice matching automation?
A: Investing in automation technology requires several important steps. First, consider an AI-powered document automation solution that can efficiently process invoices in various formats from multiple vendors like Fintelite. Test with your sample documents to ensure the system accurately extracts, matches, and verifies data according to your business rules. Next, integrate the solution and train your team on how to use the new tools.
Can Fintelite process invoices with different types of documents?
A: As stated before, Fintelite is built with AI-advanced capability to seamlessly scan and read data from any type of documents without additional training for each template. With this feature, you can avoid the bottlenecks of manual reformatting and automate processes smoothly with speed.
What data can Fintelite extract from invoices for matching?
A: Fintelite allows you to extract all data from invoices or customize specific fields you need for matching. Complete information of invoice that can be extracted includes:
- Nomor faktur
- Vendor name
- Tanggal faktur
- Due date
- Line items and quantities
- Prices and totals
- Tax information
- Payment terms
How can we implement Fintelite automation into our existing process?
A: Contact our team to discuss your needs and see how Fintelite automation turns your time-consuming invoice workflow into a seamless process. Fintelite’s intelligent document solution offers flexible cloud deployment and supports API integration to ensure smooth implementation without disrupting your existing work system
