What Is Invoice Capture Software?
Invoice capture software is a digital tool that automates the extraction of invoice data, eliminating the need for manual data entry. Unlike traditional invoice processing, which involves scanning paper invoices, manually entering data, and validating it in accounting or ERP systems, invoice capture software uses Optical Character Recognition (OCR) and Artificial Intelligence (AI) to extract and process invoice information in real-time.
Table of Contents
The Problem With Manual Invoice Processing
-
Time-consuming and labour-intensive
-
Prone to human errors
-
Causes delays in payment approval processes
-
Increases risk of fraud and lost documents
-
Lacks visibility and compliance tracking
How Invoice Capture Software Works
Modern invoice capture automates the entire accounts payable (AP) workflow. Here’s how:
-
Invoice Receipt: The software captures invoices from multiple sources (email, PDFs, paper scans, etc.).
-
Data Extraction: OCR and AI extract relevant details (invoice number, supplier, VAT number, line items, etc.).
-
Validation: To ensure accuracy, the extracted data is matched against purchase orders and receipts.
-
Approval Workflow: Automated routing sends invoices for approval, reducing bottlenecks.
-
Integration: The software syncs with accounting or ERP systems, ensuring seamless financial processing.
Benefits of Automating Invoice Capture
1. Significant Time Savings
A study found that 35% of finance professionals cite manual invoice processing as their biggest challenge (Source: Finextra).
2. Cost Reduction
Automating invoice capture can cut invoice processing costs by 50-75%, reducing manual invoice handling costs from £7 to £2 per invoice (Source: Ardent Partners).
3. Improved Accuracy & Compliance
Automated invoice capture reduces errors and ensures a full digital audit trail, helping businesses comply with tax regulations like Making Tax Digital (MTD) (Source: Gov.uk).
4. Faster Payment Approvals
With real-time processing, invoices move seamlessly through the approval chain, eliminating delays that cause late payment penalties (Source: IOFM).
5. Remote Accessibility
Cloud-based invoice capture software allows teams to access and process invoices from any location, ensuring business continuity (Source: Gartner).
Key Features to Look for
| Feature | Benefit |
|---|---|
| OCR & AI Data Extraction | Automates invoice processing with high accuracy |
| Real-Time Processing | Eliminates delays in data validation and approvals |
| Integration with ERP | Syncs seamlessly with accounting software |
| Duplicate Invoice Detection | Prevents duplicate payments and fraud |
| Multi-Currency & Tax Handling | Ensures compliance with global tax laws |
Data-Driven Insights on Invoice Automation
According to a report by PayStream Advisors, businesses that automate their invoice capture process experience:
-
81% faster invoice approval times (Source: PayStream Advisors).
-
73% reduction in invoice processing costs (Source: Levvel Research).
-
55% fewer errors in AP workflows (Source: PayStream Advisors).
FAQ About Invoice Capture
1. What is invoice capture software?
Invoice capture software is a tool that automates invoice data extraction and processing, eliminating manual data entry errors.
2. How does invoice capture software improve efficiency?
It reduces invoice processing time by up to 30%, increases accuracy, and ensures real-time data validation (Source: Ardent Partners).
3. Can invoice capture software integrate with my existing ERP system?
Yes, most solutions integrate with leading accounting software like Xero, QuickBooks, SAP, and Dynamics 365.
4. Is implementing invoice capture software complex?
No, modern cloud-based solutions are easy to implement and require minimal IT resources.
5. How secure is invoice capture software?
Leading software providers offer bank-grade encryption, ensuring sensitive financial data is protected (Source: Cybersecurity & Infrastructure Security Agency).
Take the Next Step in Invoice Automation
Ready to eliminate manual invoice processing? Explore Zahara’s invoice capture software and see how automation can save your business time and money.
📞 Book a Demo Today or visit Zahara to learn more.
