Invoice Processing Automation: Why it Matters, Best Practices, and Solutions

invoice automation

Statistics suggest that 31% of companies have fully automated at least one function while 76% are using it for standardizing workflows, 58% for data reporting, and 36% for regulatory compliance. Invoice processing is also going through this transformation. And why wouldn’t it? After all, it’s a business function that is very crucial yet also often tedious. 

However, some business owners and teams have limited knowhow of the massive benefits brought by this approach. In this blog, API Connects will talk about invoice processing automation, and will walk you through its relevance, key benefits and potential business impact. 

Our automation engineers will also list best practices along with effective solutions to guide you in making a seamless shift towards automation in invoice management processes. 

Let’s begin! 

Why Invoice Processing Automation Matters? 

Handling invoices on your own can be a time-consuming and error-prone task. But not when you automate them. Here are some key reasons why invoice processing automation matters: 

1. Low cost of processing

Data entry, routing, approvals – these are some labour-intensive activities involved in manual invoice processing especially for big organizations. Automating them makes everything easier. By eliminating manual data entry, automating routing workflow, and making the approval process easier, it frees valuable staff time for strategic activities. 

Around 80% processing costs can be reduced using invoice automation. 

2. Reduced errors and increased accuracy 

To err is human; to automate is smart. We all make mistakes but even one flaw in invoices can lead to wrong payments, delayed processing, and damaged relationships with stakeholders. Automated systems read data directly from invoices, and reduces the need for manual entry and chances of error significantly. 

This increased accuracy helps enterprises build trust with suppliers over financial records. 

3. Speed in processing times and efficacy 

Those who run businesses or handle accounting know the fact how much time manual invoice processing can take. Days… even weeks for big teams and vendor base. This can lead to delayed payments and strained relationships. From receipt of invoice through to payment approval, automation speeds up the entire process! 

Faster cycles for payments potentially result in early payment discounts and cash flow improvement. 

4. Visibility and control 

Given invoices often lack transparency in manual processing, it’s difficult to track status of invoices and bottlenecks. Automated systems provide real-time visibility into the complete lifecycle of an invoice. Yes, read it right! Businesses can monitor invoice status, track approvals, and identify potential issues. This provides them better financial management and improved forecasting. 

5. Improved compliance and audit readiness 

Manual invoice processing tends to be difficult in ensuring compliance with regulatory requirements or preparing for audits. Automated systems ensure that every invoice is processed according to set rules and procedures. This generates an audit trail and makes compliance easier. You’ll also notice a reduction in risk of facing penalties! 

Recommended: A comprehensive guide on onboarding automation

What are Best Practices for Invoice Processing Automation?

Alright, we bet now you understand how much of an amazing step implementing invoice processing can be. It’s a step towards greater efficacy and cost savings. But hey, installing a system isn’t enough. Smooth transition and maximum benefits could be achieved by following certain best practices. 

Here are some key points to consider when setting up invoice processing automation system in 2025: 

1. Define clear objectives 

Christina Wodtke once said, “Vague goals are the enemy of progress.” It’s true! Before implementing any automation solution, clearly define your objectives. For example, you can ask yourself or your team these questions: 

– What specific problems are we trying to solve?

– What improvements our enterprise is hoping to achieve?

Establish key performance indicators (KPIs) to measure the success of your automation efforts. 

2. Select the right automation solution 

Once you’ve taken your first step by identifying needs and setting goals, you’re set for the most crucial part of the automating transition journey – selecting the right solution. But it won’t be a walk in the park. There are various automation solutions available for invoice processing. And each has its strengths and weaknesses. 

Analyze your specific requirements first before picking an option that you think can easily meet your business requirement, budget, and other existing systems in place. Also, consider volume, complexity, and integrations. 

3. Standardise invoice formats

Top automation engineers at API Connects, New Zealand believe that non-standardised invoice formats will be a barrier to automation. Therefore, we suggest enterprises request vendors to regulate their invoice formats such as EDI or XML. 

Benefit? This will simplify data extraction and improve the accuracy of invoice processing. Even if full standardisation is not possible, you can make certain that your chosen solution can handle multiple formats through OCR or other intelligent capture methods. 

4. Integration with other systems 

Remember we mentioned the integration part above? Finally, it’s time to discuss it in detail! Ask your hired engineers to take their time and integrate your selected automation solution smoothly with existing accounting, ERP, and other relevant systems.  After all, who wants to face problems after spending so much $$$? 

Assimilation with existing systems ensures full exploitation of automated invoice system benefits. Not only will you be able to minimise data inconsistencies but also be able to prevent duplication of data entry efforts. It also facilitates workflow smoothness across departments. 

5. Implement strong validation process 

We know what you’re thinking, “Since I’m already automating invoice processes, why should I validate?” See, it’s true that automation reduces manual effort but validation guarantees accuracy and compliance. Double-checking also helps you avoid costly errors. 

Validate can be through automated checks, manual review of exceptions, or combination of both. Clear rules and procedures should be established within your enterprise regarding handling exceptions and resolving discrepancies. 

6. Comprehensive training 

Can you drive a car without learning it? Of course not. Similarly, setting up invoice processing automation isn’t enough. You need to provide appropriate staff with adequate training about your enterprise’s new automation system. It can comprise: 

– What is it about? 

– How to use it? 

– How to handle exceptions when they occur?

Adequate training will put your employees in a better position to effectively use the new invoicing system, giving your business optimum value. 

7. Monitor and optimize 

And finally, make sure to continuously monitor the performance of your automated invoice processing system for areas of improvement. Follow KPI, observe user feedback, and make adjustments as needed. A system constantly meeting your business needs helps you better refine your process. 

Why Choose API Connects for Invoice Processing Solutions? 

Based in Auckland, New Zealand, API Connects has been providing innovative solutions for almost a decade. We’ve helped various enterprise clients optimize their operations by streamlining processes through intelligent payroll automation. 

API Connects works with technologies like Azure Power Automate and ABBYY Vantage IDP to deliver measurable results. Need an example? One of our clients was working with a manual and ineffective invoicing process. 

By implementing automated workflow using the aforementioned tools, API Connects helped them achieve intelligent document processing. Our engineers helped extract large volumes of data accurately and efficiently. Result? Our invoice processing automation solutions helped them save over 1 man-week per month and boosted their general efficacy by 30%.  

Banking industry recommendation: Core banking services in New Zealand

Automate Invoice Process: Final Words 

There you go! 

We told you everything about invoice processing automation. Today is the right time to embrace payroll automation technology. Automated invoice processes can unlock enormous cost savings, minimise errors, improve efficiency, and strengthen your relationship with stakeholders. 

Don’t let manual processes hold your enterprise back! Contact API Connects today to learn how our solutions can help you attain error-free invoice processing automation. Let’s work together to move your business forward! 

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