Digitizing incoming invoices: A guide for small businesses

In today's business world, time is money. Therefore, it is crucial for small businesses to optimize their workflows in order to remain competitive. One way to save time and money is to digitize accounting and process invoices electronically. In this guide, we'll explain why it's important to digitize incoming invoices and the best way to go about it.

Why should incoming invoices be digitized?

In the past, incoming invoices had to be processed manually. This meant that employees had to physically check the invoices, manually enter the data into the accounting software and properly archive the paper documents. This was time-consuming and error-prone. However, by digitizing incoming invoices, you can

• Save time: Automating the process saves you time by eliminating manual steps.
• Minimize errors: When you eliminate manual steps, you also minimize the risk of data entry errors.
• Save money: By reducing labor time and errors, you can save money and increase productivity.
• Stay on top of things: With digital accounting, you can keep track of your finances at all times and make decisions more easily.

How can incoming invoices be digitized?

There are various ways to digitize incoming invoices.

Some of the most common methods are explained below:

Scan and use OCR software.

One way to digitize incoming invoices is to scan them and use optical character recognition (OCR) software to extract the textual information. This information can then be automatically imported into accounting software.

Use e-invoices

Another option is to use e-invoices. These are electronic invoices in XML format. When you use e-invoices, you don't have to enter the data manually. Instead, the data is automatically imported into your accounting software.

Use cloud-based accounting software

Another option is to use cloud-based accounting software. With this software, you can manage your accounting and access your data from anywhere. Some cloud-based accounting software also has built-in OCR software to automatically process incoming invoices.

How do I choose the right method for digitizing incoming invoices?

Choosing the right method depends on the specific needs of your business. If you receive multiple invoices per month, consider cloud-based accounting software with built-in OCR software. It's also important to keep costs in mind. OCR software and e-invoices can typically be less expensive than cloud-based accounting software. However, make sure the method you choose is also secure. Make sure the software you choose uses a secure connection and encrypts your data. With Finui, we already offer a solution that makes sense for 20 invoices or more, since you have no fixed costs and only pay for each invoice.

Best practices for digitizing incoming invoices

‍Make sure you have a backup solution in place
Make sure you have a backup solution in place to ensure your data is backed up in case of failure or corruption. Store a copy of your data on an off-site server or in a cloud solution.

Check your accounting software for automation features.
Check your accounting software for automation features to make sure you're getting the most out of your system. Many cloud-based accounting software have automation features for processing incoming invoices and payments.

Train your employees
Train your employees to make sure they know how to use digital accounting and follow the required procedures. Train your staff to know how to use OCR software and accounting software and how to properly archive invoices.

Review your data regularly
Review your data regularly to ensure it is accurate. Check your data for any errors or irregularities and correct them promptly.

Conclusion

Digitizing incoming invoices is an important step for small businesses to streamline their workflow and save time and money. Using OCR software, electronic invoices and cloud-based accounting software can help you do just that. Make sure you choose the right method for your specific needs, and follow best practices to ensure your data is secure and accurate. Feel free to try Finui for free and see for yourself.

‍