What are the most efficient invoice processing workflows for shared services?

1 Centralized scanning and data capture

One of the first steps to streamline invoice processing is to centralize the scanning and data capture of paper invoices. This can help you eliminate manual data entry, reduce errors, and speed up the validation and approval process. You can use optical character recognition (OCR) software to automatically extract key information from scanned invoices, such as invoice number, date, amount, supplier name, and purchase order number. You can also integrate the OCR software with your enterprise resource planning (ERP) system or accounting software to match the invoice data with the existing records and flag any discrepancies or exceptions.

3 Electronic invoicing and payment

A third way to optimize invoice processing is to adopt electronic invoicing and payment methods, such as e-invoicing or electronic funds transfer (EFT). E-invoicing is a process where you receive and send invoices electronically, either through a web portal, an email, or a network. This can help you reduce paper usage, postage costs, and storage space, as well as improve security, traceability, and compliance. EFT is a process where you pay your suppliers electronically, either through a bank transfer, a credit card, or a digital wallet. This can help you reduce processing fees, avoid late payments, and improve cash flow management.

4 Workflow management and analytics

A fourth way to enhance invoice processing is to use workflow management and analytics tools, such as workflow software or dashboards. Workflow software is a tool that helps you automate and monitor the invoice processing steps, such as validation, approval, posting, and payment. This can help you reduce manual intervention, enforce business rules, and track the status and performance of each invoice. Dashboards are tools that help you visualize and analyze the invoice processing data, such as volume, cycle time, accuracy, cost, and compliance. This can help you identify bottlenecks, trends, and opportunities for improvement.

5 Continuous improvement and best practices

A fifth way to achieve invoice processing excellence is to implement continuous improvement and best practices, such as benchmarking, feedback, and training. Benchmarking is a process where you compare your invoice processing metrics and practices with those of other SSCs or industry standards. This can help you set realistic and measurable goals, and identify gaps and areas for improvement. Feedback is a process where you collect and act on the input and suggestions of your internal and external stakeholders, such as business units, suppliers, and customers. This can help you improve customer satisfaction, collaboration, and innovation. Training is a process where you educate and empower your invoice processing staff, such as accountants, clerks, and managers. This can help you improve their skills, knowledge, and motivation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?