Accounts payable (AP) teams are under rising pressure to maintain efficient, error-free operations while contending with limited resources and growing fraud threats. Still, many teams rely on manual, paper-based processes that are inherently slow, error-prone, and vulnerable to disruption.
The solution? Digitizing invoices at the source. AP invoice scanning software helps teams translate paper-based invoices into digital formats and automate data capture for greater accuracy. This digitization eliminates the burden of manual data entry and lays the groundwork for a seamless, fully digital AP workflow.
With the right AP scanning software, teams can better position themselves to meet the demands of the modern financial environment.
Key takeaways
- Invoice scanning and data capture streamline AP workflows by digitizing paper invoices and extracting key data, which reduces manual handling and increases processing speed.
- Digitizing invoices enhances security by enabling cross-referencing of payment data to identify discrepancies and prevent fraudulent transactions.
- AP teams can automate the entire AP workflow, from invoice receipt to payment and reconciliation, to unlock the full potential of automation.
What are invoice scanning and invoice data capture?
Invoice scanning and invoice data capture are key components of the AP workflow. While the terms are sometimes used interchangeably, they refer to distinct processes in invoice management.
Invoice scanning refers to the process of digitizing paper invoices, which turns physical documents into digital formats using scanners or mobile devices. This digitization makes it easier for AP teams to access and share invoices electronically.
Invoice data capture takes the process a step further by extracting key information from digital invoices. Data capture ensures that important details like invoice numbers, amounts, due dates, and line items are stored accurately. Teams who are looking to invest in an invoice scanning solution should also ensure that they can capture data for further analysis and processing.
Automated invoice scanning and data capture can significantly reduce human error and speed up processing time. Yet according to MineralTree’s 9th Annual State of AP Report, only 38% of companies currently have automated invoice capture and coding—making it a top automation priority over the next year.
What are the benefits of scanning AP invoices using data capture
Invoice scanning and data capture offer several advantages for AP teams, including:
- Digital record keeping
- Reduced manual data entry
- Improved analytics
- Better protection against fraud
Digital record keeping
A digital approach to recordkeeping keeps invoices secure and makes them easily and instantly accessible. Storing invoices digitally eliminates the risk of lost or misplaced documents. It also helps AP teams comply with documentation requirements and best practices, supporting regulatory compliance with industry standards.
Reduced manual tasks
According to the State of AP Report, inefficient processes ranked as the biggest hurdle for AP teams over the last year. Given the shortage of finance talent, many teams are struggling to keep up with increasing workloads while maintaining accuracy. Automating invoice scanning and data capture allows teams to significantly reduce manual data entry, improve efficiency, and adapt to increasing demands—without additional headcount.
Improved analytics
Digitizing invoices allows teams to leverage captured data for better AP reporting and analysis. With a complete picture of an organization’s payables, teams can make more strategic, data-driven cash flow management decisions.
Did you know? MineralTree enables AP teams to analyze invoice data immediately upon capture—without having to wait until invoices are paid and posted to the enterprise resource planning (ERP) system.
Better protection against fraud
The State of AP Report revealed that 42% of companies saw a rise in business email compromise (BEC), which involves attackers impersonating vendors or executives to deceive employees into making fraudulent payments.
As fraud becomes more prevalent, digital invoice capture adds an important layer of protection by making it harder for attackers to exploit vulnerabilities in manual processes. Digitized invoices allow teams to cross-reference payment data more effectively to ensure accuracy and detect discrepancies before fraudulent payments are made.
Key considerations for AP invoice scanning and data capture
When choosing an AP invoice scanning and data capture solution, there are several key capabilities to consider that can significantly impact efficiency and accuracy, such as:
- Email versus mailed invoices
- OCR technology with human review
- Line-item scanning
- End-to-end automation
Email versus mailed invoices
Paper invoices sent via traditional mail require AP teams to scan, digitize, and sort them before processing can begin. On the other hand, emailed invoices eliminate the need for scanning—but they may still require manual data entry. Automated data capture tools streamline the process, ensuring key details are extracted and inputted into the team’s AP system.
OCR technology with human review
OCR technology is essential for accurate invoice scanning and data extraction. It converts invoices to machine-readable text that teams can scan, extract, and import into their systems. However, pairing OCR with human review is the best way to achieve near-perfect accuracy without sacrificing efficiency.
Did you know? MineralTree combines OCR with human checks for invoice capture to deliver a 99%+ accuracy rate each time.
Line-item scanning
Line-item scanning is an invaluable feature for organizations that need granular insights—for example, to track spending by department or analyze vendor-specific expenses. This level of detail helps AP teams make data-driven decisions that go beyond surface-level details and help identify cost-saving opportunities.
Did you know? MineralTree’s invoice scanning solution can capture details at the line-item level, helping teams gain more comprehensive data for AP reporting and analysis.
End-to-end automation
Automating invoice scanning and data capture is just the first step in transforming the AP process. To fully leverage the benefits of automation, AP teams must automate the entire AP workflow, from receiving invoices to final payment and reconciliation.
End-to-end AP automation can significantly enhance the efficiency of finance departments. So it doesn’t come as a surprise that it’s remained the top priority for AP teams for the past three years, according to the State of AP Report.
Final thoughts
Choosing the right invoice scanning solution can transform your entire AP workflow by minimizing manual data entry, reducing fraud risk, and enhancing financial analytics and reporting. By prioritizing the digitization of invoice scanning and capture, you can lay the groundwork for an entirely digital workflow—and end-to-end automation that boosts efficiency, cuts processing times, and eliminates bottlenecks in your finance department.
Schedule a demo to learn how MineralTree’s automated solution can take your AP workflow to the next level.
FAQs on AP invoice scanning
Tl;dr? If you’re short on time, the frequently asked questions below provide a quick snapshot of what you need to know about scanning invoices.
1. How can companies digitize accounts payable?
Companies can digitize accounts payable by adopting AP automation tools that include invoice scanning and data capture capabilities. These tools convert paper invoices into digital formats, which allows for easier processing, tracking, and reporting. Digitization of AP speeds up invoice handling while reducing errors, providing better visibility, and supporting more effective financial planning.
2. What does OCR mean in accounts payable?
OCR is short for Optical Character Recognition, and this technology can transform characters into computer-accessible information. OCR is an important tool for accounts payable teams who are looking to streamline their processes and reduce manual data entry.
AP teams use OCR technology to convert printed or handwritten text on paper invoices into machine-readable data. Teams can then automatically scan, extract, and import the digitized data into their accounting or ERP software, streamlining the workflow and reducing manual data entry. Using OCR also minimizes human error while freeing up AP teams to focus on higher-value activities.
