The benefits of invoice automation should be talked about more often in accounting practices. It is one of those features that have so much potential in simplifying the day-to-day accounting for Indian businesses. Here are some clear benefits from automating invoices using a cloud-based accounting software –
Indian SMEs don’t realize this often but the cost of processing an invoice manually is quite high. It is estimated that processing a paper invoice can cost anywhere between Rs 300 and Rs 500. There are a lot of factors that come to play when it comes to manual invoicing. There’s a cost of labour, paper and storage apart from a lot of hidden costs. These can range from classification and manual routing to losses due to misfiling or handling of the same invoice multiple times. The cost of locating a lost document or invoice can easily reach upto Rs 500 to 800 depending upon the situation. And imagine this level of carefulness in handling every invoice.
Online accounting software such as Giddh easily automates every invoice. In fact, in the Indian context, the cost of processing an invoice through automation is reduced 20 times.
Manual processing is obviously time-consuming. Tasks such as such as routing, classification, validation, and manual data entry are automatically eliminated. Invoices can either be made using the templates given in the accounting software or can be uploaded easily which saves so much time and effort. Giddh also allows setting up automatic reminders when the invoice is due and with email and SMS integrations, reminders can be sent to respective clients for making payments.
Rate of errors is reduced
It’s obvious that manual errors cannot be ruled out when it comes to manual accounting or invoicing. The accuracy is dependent on the accountant or the employee concerned and this may vary from one day to another. There can be several other challenges such as delay in approvals, detecting the errors and then correcting them, loss of discounts and so on. With invoice automation in an accounting software, these are quite naturally taken care of.
Freeing up employees
Your accountant or employee responsible for making invoices can be freed up for more important tasks. Your accountant can use that time into analyzing reports and overall finances of your business.
There are invoice automation software available in the market but the same can be achieved in much less cost from a great online accounting software as well. Not sure about online accounting? Give us a call.