The Benefits of Digital Invoice Workflows for Your Company 

All the more so if you often ask yourself which invoices are in the company, how far they have been processed and how you can speed up processing times? Then you need a digital invoice workflow. Read here to find out why.

By digitalizing the invoice workflow, numerous processes related to the capture and processing of invoices can be automated. This includes everything from the structured capture of invoices in the system and forwarding them to specified verification processes, to transferring the relevant data to the ERP system and correctly archiving the digital documents. As a result, manual interventions are minimized to just a few points in the process, thereby significantly reducing processing times. 

In practice, the increased efficiency of the digital workflow is particularly noticeable when it comes to checking and approving invoices. Once an incoming invoice has passed through a process step, it is automatically forwarded to the right person, who receives a notification via email or within the application. There’s no need to print out any paper or grab a pen for a signature – all invoices are signed digitally. In theory, this can be done from anywhere in the world where authorized users have access via their company laptop, tablet, or smartphone, and can be done with a click of the mouse or tap of the finger.

2. Greater Control and Transparency Across All Process Steps 

Has invoice A from company X arrived already? Who still needs to sign off on invoice B from company Y? In the world of digital invoice workflows, you always have full visibility of the entire invoicing process. No invoices get lost on their way from one desk to another. If there’s a delay in the approval process, responsible parties can quickly nudge the relevant person. A digital invoice workflow allows you to seamlessly track the entire invoice status and the history of all processing steps. Because sometimes, more control is better. 

In addition, the software provides you with a real-time overview of all key financial data related to incoming invoices. Want to know the total outstanding amounts that need to be settled in the next payment run? Just take a look at the dashboard, and you’ll have the answer. It doesn’t get more transparent than that! 

3. Optimized Cash Flow Management

Mistakes are only human, which is why it’s not uncommon in accounting for a discount deadline to be missed or an invoice to be paid late. This not only leads to frustrating additional costs for the company; it can also negatively impact the internal working atmosphere as well as relationships with suppliers. You can finally bid farewell to such problems with a digitalized invoice workflow. How come? First, because the invoice process is much faster. Second, because the software-driven processing of invoices allows you to set a payment date for each invoice, automatically releasing it for payment on the desired date.

4. Lower Costs, More Sustainability

n a digital invoice workflow, all invoices are initially digitalized if they are not already received as e-invoices. Paper invoices are scanned, read using OCR software, extracted, and automatically recorded in the system as digital data. The originals can then be disposed of, which helps to eliminate most of the costs previously associated with paper, printing, and physical document storage. This has great benefits for both your company’s wallet and the environment.

5. Compliance and Security for the Entire Company

By transitioning to digital workflows, you ensure that all legal and internal company guidelines are adhered to from the very outset when processing incoming invoices. For example, you can set up the approval process so that certain invoices – such as those exceeding a specific amount – must automatically be reviewed by four or more people. Alternatively, you can trigger a commercial review according to Section 14 of the German VAT Act for certain invoices or verify prices and quantities of ordered goods against the corresponding purchase orders. All in all, measures like these increase your company’s process compliance while reducing the number of incorrect invoices to nearly zero. 

Like any digital system, a digital invoice workflow also offers the advantage of protecting all processes against misuse by assigning digital access rights and encrypting the data. Integration with a digital archiving system ensures that all data is stored and retained in accordance with established rules and legal requirements. 

6. Employee Motivation 

“Why change? We’ve always done it this way.” You’ve probably heard similar resistance when it comes to digital transformation in companies. From our experience, however, the digitalization of the invoice workflow in accounting is met with high acceptance, especially once the system is implemented and set up. Once you’ve experienced how easy and convenient it is for invoices to flow through a digital process, it’ll be hard to imagine doing it any other way. Last but not least, this transition will also make your company more attractive to young, digitally savvy employees.

7. A Reassuring Look into the Future

The digitalization of internal company processes is steadily progressing. In the medium term, companies that don’t follow this path or start too late will face problems. For example, because they have not converted their processes to e-invoicing, which will become mandatory for the B2B sector starting in 2025. This is precisely when introducing and implementing digital invoice workflows will make sense, as invoices will already be arriving in the company as structured data sets. 

The same applies to future developments in the areas of artificial intelligence and data analytics. By digitalizing invoice processing, you create a better data foundation to optimize processes based on data in the future or to further automate them using AI. This technology will soon be increasingly used to carry out more dark postings, allowing more invoices to pass through the invoice workflow automatically. 

The Bottom Line

A digital invoice workflow offers a wide range of benefits, ranging from increased efficiency and transparency to optimized cash flow management and improved compliance measures. Digitalizing this process not only leads to cost savings and a more sustainable way of working; it also future-proofs your organization and makes it more attractive to modern employees. By leveraging technologies such as artificial intelligence, you can further automate and optimize invoice processing. This gives your company significant long-term competitive advantages – all while you put your feet up in the sun.