Invoice management software includes products that help automate the tasks involved with invoice processing, which gives accounts payable (AP) teams increased speed, efficiency, and accuracy. Once invoices are received from merchants, service providers, or employees, they typically must go through an approval process, after which their information is copied or transcribed for records and payments are individually drafted and delivered. Invoice management software streamlines this workflow by scanning invoices, reading and pulling data into the AP system, and transferring payments electronically. Users in the AP department can easily review and approve invoices through a platform’s interface. Some solutions offer a mobile application for remote viewing and approval, in addition to payment allocation and account selection for each payment. Once invoices are processed, they are stored either in the cloud or on-premises for easy access at a later date. These tools will often allow manual data entry for invoices in addition to automatic data capture.
Collecting, approving, and processing invoices—also referred to as the invoice-to-pay process—is a central component in the financial life cycle for any business. These software solutions benefit the AP and accounting departments by eliminating the need for paper records, manual data entry, and mailing checks for every balance fulfillment. A number of invoice management tools also provide features of or integrate with other types of software, including billing software, procurement software, and accounting software, and often provide other helpful features related to invoice management.
To qualify for inclusion in the Invoice Management category, a product must: