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How To Simplify Your Invoice Tracking With Intelligent Spend Management

Last updated: August 20, 2024

Invoice management

Yokoy

In just a few years, invoice tracking and e-invoicing will be the norm for every company. Yokoy’s intelligent spend management system can give your business a taste of this future. With Yokoy, you can get ahead of the curve today by using cutting-edge invoice tracking powered by Artificial Intelligence (AI) and e-invoicing features.

Why efficient invoice tracking is essential for your company

Efficient invoice tracking is helpful for companies to keep a close eye on cashflow and monitor the health of the business in real time. On top of that, invoice tracking enables you to streamline your processes using technology like AI to improve profitability.

Let’s take a look at why efficient invoice-tracking software should be included in your company’s management tools:

Take advantage of cash discounts: Many providers offer cash discounts as an incentive for early payments, encouraging prompt reimbursement. With streamlined invoice tracking, companies can identify and prioritise expenditures that are eligible for discounts. This approach ensures timely payments, maximising savings and improving profitability. Additionally, it enhances cash flow by strategically managing outgoing payments.
Avoid delayed payments and late fees: Delayed payments can lead to unnecessary late fees, which accumulate over time. Efficient invoice tracking helps companies monitor due dates accurately, thereby preventing late payments. Organisations can set up automated reminders and workflows to ensure that all payment processes are on track. This proactive approach also helps maintain a positive credit rating by avoiding financial penalties associated with late payments.
Improve supplier relationships: Timely and accurate payments are essential for maintaining strong relationships with your suppliers. Proficient invoice tracking enables companies to build trust and reliability by always paying suppliers on time. In addition, a positive track record of prompt payments allows for better negotiation of terms and discounts for future deals.
Save time by automating invoice history checks: Manual tracking and reconciliation of invoices can be both time-consuming and error-prone. Automated invoice tracking systems can simplify this process, significantly reducing the need for manual checks. With real-time updates on the invoice status, modern software makes it easy to access historical data. Consequently, finance teams can free up valuable time to focus on more strategic tasks.
Make informed decisions with real-time data: Access to real-time financial data is crucial for effective strategic decision-making – also for small businesses. Efficient invoice tracking offers instant insights into current company spending and cash flow. It also provides comprehensive analytics to highlight spending patterns and forecast areas for cost optimisation in your business expenses. With this data-driven approach, leaders can allocate resources more effectively and plan for future financial needs.
Comprehensive data trail for accurate auditing and reporting: Maintaining accurate and detailed records of all financial transactions is vital for compliance and transparency. Expense management software with accurate invoice tracking ensures a clear and comprehensive data trail, facilitating accurate and efficient audits. Additionally, it improves compliance with regulatory requirements by maintaining organised and accessible financial records. Enhanced reporting capabilities provide stakeholders with reliable financial information for internal and external review.

How most companies have practised invoice tracking so far

For dozens of years, companies relied on printed paper invoices, which were physically stored in filing cabinets and folders. Each invoice had to be manually recorded in handwritten ledgers or simple record-keeping books. This method was extremely labour-intensive, inefficient, and prone to errors. This made it challenging to keep track of due dates, often resulting in a lack of financial control, late payments and missed discounts. Additionally, these physical documents were always at risk of being lost or damaged.

With the advent of personal computers in the 1980s, companies began using spreadsheet software like Microsoft Excel. Finance team members created templates for manual data entry of invoice details, entering each invoice’s information. This method provided better organisation and easier data retrieval compared to handwritten ledgers. However, it still required significant manual effort and was susceptible to human error. Managing large volumes of invoices remained cumbersome, and there was still a lack of real-time visibility into the invoice processing status.

From the 2000s onwards, the shift to digital documentation saw invoices being received as digital files (e.g., PDF). Companies started using Optical Character Recognition (OCR) to automate data extraction from these files. While OCR scans could capture relevant invoice information, the technology was not foolproof. Employees still needed to verify the extracted data, correct any errors, and fill in missing information. Despite these limitations, this approach marked a significant improvement in efficiency, paving the way for more advanced digital solutions that continue to evolve today.

How intelligent invoice tracking works with AI

In the future, invoice tracking is set to be revolutionised by AI and e-invoicing. Unlike traditional methods that rely on scanning PDFs, AI-driven systems can directly process e-invoice formats, making things much easier. With e-invoicing, there’s no need for physical or PDF invoices – everything is handled in standardised electronic formats that integrate smoothly with financial systems. This shift not only streamlines the invoice management process but also enhances accuracy and efficiency, greatly reducing the need for manual labour and reducing employee expenses.

While OCR technology scans and extracts data from PDFs, AI goes a step further by understanding the context and content of invoices. AI-driven systems can interpret invoice details, cross-reference data with purchase orders, and flag discrepancies automatically. This level of comprehension reduces errors that OCR might miss, offering a more reliable and efficient invoice processing solution. AI-powered platforms also provide customisable workflows, automating approval processes based on predefined rules.

Benefits of AI-driven invoice tracking

Optimised cash flow: AI can predict payment schedules and optimise cash flow by ensuring timely payments and taking advantage of early payment discounts.
Cost savings: Reduced manual processing and errors translate into significant cost savings.
Less time-consuming manual tasks: Automation of routine tasks frees up employees to focus on more strategic activities.
Optimised fraud detection and fewer human errors: Reducing reliance on manual tasks also leads to fewer human errors. Combined with advanced algorithms that detect anomalies and potential fraud, modern invoice tracking ensures greater financial security and accuracy.
Real-time data insights: AI provides real-time visibility into invoice statuses, improving financial decision-making.
Customisable workflows: Tailored workflows streamline approval processes, enhancing efficiency.
Recommendations on spend: AI analyses spending patterns and offers recommendations for cost optimisation.

These benefits position AI and e-invoicing as the future of efficient, accurate, and cost-effective invoice tracking, enabling companies to achieve better financial management and operational excellence.

Streamline your invoice tracking and invoice management with Yokoy

Yokoy’s platform seamlessly integrates the abovementioned features, offering a unified invoice tracking and management solution. With the power of AI and e-invoicing, you can have a partner for efficient, accurate, and cost-effective invoice processing in the future. Let’s take a look at Yokoy’s top features:

Comprehensive e-invoicing support: Simplify your invoice processes by consolidating all invoices, whether paper-based or electronic, on a single platform. Yokoy supports a wide range of invoice formats through strategic partnerships, enabling a seamless, touchless accounts payable process.
Intelligent line-item coding: Accelerate invoice processing by eliminating manual tasks with AI-powered automation. Yokoy predicts and assigns the correct GL accounts for each invoice, ensuring accuracy and efficiency.
Automated matching: Enhance accuracy with Yokoy’s 2- and 3-way matching, which imports procurement data from your ERP system and automatically detects anomalies, allowing for immediate action.
Automated compliance checks: Avoid non-compliance with automatic validation of invoice documents, including checks for duplicates and up-to-date payment data from your ERP system.
Customisable workflow and approval processes: Design tailored invoice workflows by defining approvals based on cost objects, suppliers, or line managers. Yokoy automates these processes, enabling faster closing times and efficient exception handling.
Real-time data analytics: Gain instant visibility into every invoice and purchase order. Monitor approval workflows in real time across all legal entities from a central dashboard, ensuring timely vendor payments and access to payment discounts.
Cross-device invoice processing: Capture and manage invoice data on the go with Yokoy’s mobile app. The intuitive design ensures all invoice details are easily accessible on any device, minimising human error.
Flexible API integrations: Seamlessly integrate Yokoy with your existing ERP systems using pre-built connectors and an intuitive API, eliminating data silos and fully automating your accounts payable workflows.
Multi-entity support: Streamline complex accounts payable and travel and expense processes across multiple entities and subsidiaries. Yokoy’s platform offers customisable workflows to enhance efficiency and control.
Yokoy’s service and support: Immediate assistance and expert troubleshooting help you and your team solve problems and enhance their knowledge with in-depth live and self-guided academy training sessions.

For finance leaders committed to driving profitability and operational excellence, investing in a cutting-edge invoice-tracking solution like Yokoy is a strategic imperative. By adopting our AI-driven features, you position your company for sustained financial success and streamlined operations in today’s competitive business climate.