What is an invoice management system?

Definition of invoice management system

An invoice management system is an online internal business system that manages invoice documents from vendors and suppliers.

What are the challenges of invoice management?

An invoice management process starts when you receive the supplier invoice. The invoice should then be: identified, categorized, filed and matched to a purchase order (PO) by the person responsible for the order. After these steps, the invoice is usually transferred to the financial department and the sum is paid.

To avoid any issues, the 3 following points should be double-checked:

Was the person who ordered the product allowed to place the order?
Was the PO approved by a manager?
Can the PO or invoice be linked to an existing supplier contract?

What are the benefits of an invoice management system?

It enables online invoice payments: With an invoice management system, businesses can accept customer payments on open invoices directly through their web store. Customers can even pay multiple outstanding invoices at the same time online.
It makes things easy: having an invoice management system offers more benefits than just allowing customers to pay online. Think about how often your customers need to contact you by calling or emailing to request documents. With this system, you can give customers access to documentation, past invoices, receipts, and attachments — online, 24/7.
It helps increase cash flow: Sometimes it can be challenging for SMBs (small and medium-sized businesses) to predict what their cash flow will look like throughout the month as they manage payroll, accounts payable, and other business expenses. An invoice management system helps to automate and streamline the entire process to make sure the cash flow stays positive.

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