Invoice verification is one of the most time-consuming and cost-intensive routine processes in companies. Particularly when a wide variety of invoices are received in various layouts to different invoice receipts in paper or digital form, manual invoice verification is inefficient and prone to errors as invoice volumes increase.
Digital invoice verification offers potential for automating the processing of incoming invoices. Thanks to artificial intelligence and customization, different invoices and also other documents can be read seamlessly and reliably. Relevant invoice information such as vendor, customer, invoice date, invoice amount, invoice number, account data, etc. is provided in a structured manner for further processing.
Before companies pay invoices, they need to check them to avoid paying invoices twice and to be sure that the invoiced service has been provided.
Thanks to artificial intelligence and the use of the right software, incoming invoices can be read, processed and approved seamlessly and securely, and finally transferred to an accounting system. This means that all relevant data is provided, stored and archived for further processing. Companies are required by law to retain documents for 10 years. They can be retrieved and found at any time in order to prepare the legally required annual financial statements.
In a DMS, this process can be mapped digitally and brings a number of positive aspects to the company and its employees. But how exactly does a DMS work and how can this release process be mapped digitally?
Definition – What is a DMS?
DMS is the abbreviation for Document Management System, in which the organization and coordination of all documents in the company can be simplified and coordinated. The DMS software offers companies a powerful software platform for the digital management and automation of their business processes and documents and is characterized by a variety of advantages.
Digitization of business processes with document management software
A daily must in companies: The processing and approval of invoices. The manual processing process is often time-consuming and in many cases still drags a large flood of paper behind it. The work becomes confusing and responsibilities are not clear.
In many companies, certain rules have become well established, but if you want to remain competitive today, you have to embrace the digital transformation.
Do these situations sound familiar to you?
“The colleague is sick today. Who is responsible for processing the invoice?”
“What is the current status of the invoice?”
“We’ve missed another cash discount deadline.”
“How do I get to my documents when I’m working from a home office or on the road?”
Software supports you and offers solutions for all these challenges. Processes become transparent, secure and enable more efficient work. Invoice receipt can be digitized easily and quickly with the right software.
Discover all the advantages of a DMS. We would be happy to advise you.
Why implement a DMS?
For every company, it is important that valuable resources are used correctly and, above all, are retained. Unproductive work, lack of personnel and time, overworked and dissatisfied employees and additional costs, on the other hand, slow down success. DMS solutions help you to focus on core tasks and significantly simplify everyday (work) life.
Other advantages of a DMS are:
- Audit-proof processing, storage and archiving in accordance with GoBD
- Invoice processing and approvals are possible from anywhere, even from the home office
- Manual data entry and input is no longer necessary. You scan invoices and send them to the system by e-mail. Automatic text readout takes over the data readout.
- Transparency in the processing process & responsibilities are clear
- Acceleration of invoice processing: discounts are not slept through
- Deadline management, due dates are not overlooked
- Creation of automatic rejection letters
- Automatic duplicate checks and IBAN checks
- Efficient work, relief of the employees
- Significant time savings due to fast search
- Auditable system: no need to prepare for audits
Scan/forward invoices via e-mail, validate, approve
Invoice receipt can be processed, stored and managed digitally to save time while minimizing errors. The invoice approval process is different in every company. With the right software, individual workflows can be created and structured through release, approval processes and authorizations.
What can an invoice approval process look like?
With the help of a document management system with digital workflow, the release of your incoming invoices can be easily automated. Analog processing of invoices and manual distribution from department to department is no longer necessary. File folders, signature folders and the flood of paper are now a thing of the past.
This example shows how the release of incoming invoices can look:
1. the invoice is received and uploaded to the platform via mail-in or scan-in module.
2. relevant data, such as invoice number, supplier, gross and net amounts, VAT, etc. can already be read out and transferred to the system by means of OCR.
3. simple and multi-level approval of incoming invoices. Different roles and rights can be assigned to several users.
4. more complex release: users can be sorted by cost centers, assigned to departments, receive release limits, be stored with substitute regulation.
5. direct transmission to the accounting system, e.g. DATEV Unternehmen Online, SAP, Microsoft Navision/ Dynamics etc.
Who is a DMS useful for?
A document management system can be used in most departments of a company. Whether for contract management, e-mail archiving or invoice workflows. With a DMS, profitable synergies arise across departments, from which the company and its employees can draw sustainably.
Here are the most common areas of application:
- Invoice approval
- contract management
- Order management
- Digital incoming mail
- File management / digital archiveWo kann ein DMS installiert werden?
There are two alternatives for installing a DMS.
The On Premise solution, where the software is installed on an internal company server.
The cloud solution, where the data is located on an external server of a cloud provider.
It is not possible to make a general statement as to which solution is suitable. Therefore, it is worth looking for a software provider that offers both options. Your software provider will advise you on this.
How do I successfully implement a DMS?
The decision for a DMS and its integration should be well planned. After researching and deciding on the right provider, describe, document and review processes. Eliminate inefficient workflows to streamline and make digital processes most efficient. Now is the opportunity to eliminate inefficiencies.
Keep an eye on the future of your business: how is your organization evolving? How will a DMS support the achievement of your goals? For which areas do you need a DMS?
The future of the DMS
Digitalization is changing our lives in all areas. Innovative technologies support and relieve us, especially professionally, and advance companies due to cost reduction, time saving and quality assurance. The automation of workflows, such as the processing of invoices (incoming invoices and outgoing invoices), are now already standard in many organizations.
The digitization of administrative tasks and the use of a DMS will become widespread, after all, every company wants to secure the future of its business and be home office capable.
Discover all the advantages of a DMS for your organization. We will be happy to advise you.