Manual invoice management can be time consuming and messy. Emails and spreadsheets are a fine temporary workaround for a new startup, but as a growing SMB, you’ll need automated invoice processing software.
Tools like Moss automate the process, from invoice capture and data extraction through routing, approval and export, so your team spends far less time on manual admin. If you’ve ever spent time chasing down missing receipts or trying to align payments that don’t match, you’ll understand why this tool is at the heart of many modern accounts payable (AP) workflows.
In this guide, discover the best invoice automation tools and the key features that streamline finances.
What’s invoice automation software?
An invoice processing system checks, approves, and pays invoices. Instead of forwarding emails and entering data manually, the software automatically pulls invoices in from multiple sources. It handles the entire process and manages little details, like matching amounts and flagging discrepancies.
Key steps in the invoice processing workflow
Here’s the typical invoicing process↗ and the ways automation enhances it.
Invoice receipt
The process starts when you receive an invoice from a supplier. It could arrive in many formats, such as PDFs, spreadsheets, or traditional paper documents. With automated software, the system typically receives receipts through direct integration.
Data capture
Typically, a teammate would now enter data manually. However, an invoice processing system captures the data from the invoice automatically, grabbing details like the company name, amount owed, and payment terms.
Approval routing
Automatic platforms use rules-based approval routing, which sends invoices to the appropriate teammate based on parameters you set up in advance. With manual processes, teams need to do this on their own, which is time-intensive, even for seasoned employees.
Payment
When the approver okays the invoice, the next step is to make the payment. Traditionally, this involves entering more data and sending physical checks. Invoice processing software manages everything for you, whether you’re issuing immediate payments or scheduling them for a later date.You can do this with your usual accounting system, so the software records everything in your books automatically.
Reconciliation
The last stage is invoice reconciliation↗, which involves comparing financial records and making sure the amounts match. When done manually, this process can be tiring and repetitive, and it may result in misaligned records and audits. It’s simple with automated invoicing tools — the platforms check every transaction for you, flagging discrepancies and routing them to a human for review if needed.
Manual vs. automated invoice processing
With traditional invoicing, delays and errors are common. Imagine an SMB with a manual invoice process. Their accounts payable↗ team records data from each transaction, forwards it to the right person for approval, and makes the payment. There’s also a hefty amount of waiting and back-and-forth messaging in between.
This company doesn’t just spend a hefty amount of time and energy. They end up with mismatched amounts, receipts they can’t track down, and duplicate payments.
After adopting automation, their staff has breathing room. The software pulls in invoices and routes it to approvers in moments. The right person puts their stamp on it, and the system handles the rest, paying invoices and recording the transaction in the books. The process is smooth and lets employees focus on more important tasks like tracking cash flow and monitoring financial KPIs↗.
Top 4 automated invoice processing software
While every SMB’s needs are different, these platforms stand out as excellent options. Here are four invoice processing tools and their key features.
1. Moss
Moss’ e-invoice processing↗ automates your workflow, from intake and data capture through validation, review and matching, while keeping key approvals in your team’s control. It’s intuitive and easy to set up, so teams can fit it into their daily workflows without a massive learning curve and engineering support.
Moss automatically extracts key invoice details (like supplier, invoice number and due date) using optical character recognition (OCR), routes invoices for review and approval based on your rules, and syncs approved invoices into accounting tools such as Xero and QuickBooks. This gives finance teams full control and clearer oversight from one platform.
Moss in action
London fashion company Rat & Boa↗ had previously outsourced their finance function, which meant little structure when they took back control. Even basic manual processes were scattered and complex. With Moss, Rat & Boa gained control over their finances and improved cash-flow planning with real-time visibility across over 80 purchase cards↗. After integration, Rat & Boa achieved an 80% reduction in reimbursement delays with over 300 transactions monthly.
2. Tipalti
Tipalti offers automated data capture and invoice processing, supporting global payments in multiple currencies. It integrates with accounting systems like Xero and Sage and provides dashboards to control spending.
3. Stampli
Stampli features AI-powered invoice capture and a vendor portal for managing suppliers. It offers centralised invoice communication and activity tracking for visibility. Stampli also provides audit trails and reporting for compliance.
4. Coupa
Coupa is an invoice system that uses AI to extract invoice data and detect duplicate or fraudulent payments. It features automatic routing, mobile-friendly invoice approval, and automated reminders for suppliers and teammates to enhance visibility.
Benefits of an automated invoice processing for growing SMBs
Automating your accounts payable invoice processing is an essential step for any scaling SMB. Here’s why.
Increased cost-efficiency and accuracy
According to Public Finance magazine↗, AP teams spend a quarter of their time resolving problems related to invoice data entry and processing. This effort translates to £4–£25 per invoice. Automating the process can reduce costs by as much as 60–80%.
With invoice automation software, you can significantly cut down on tedious steps like manual data entry and chasing approvals, because the platform helps process, track and update invoices centrally. This reduces errors↗ and speeds up workflows.
Better visibility and control
SMBs need tight control over their cash flow. These companies have limited resources, and every pound should contribute to growth and potential unexpected costs.
Automated invoice processing software like Moss gives your finance team a more consolidated view of company spend by bringing card transactions, invoices and reimbursements together in one platform.This helps them smoothly manage payments, eliminating surprise charges and sudden budget shortages.
Compliance and audit readiness
Auditing scattered paper receipts and inconsistently formatted spreadsheets is a headache. With an automatic invoice processing system, you have a full audit trail that you can access quickly and easily. Browse reports and search for key details, like date or transaction, to find what you need in seconds.
Moss helps businesses stay compliant with internal policies and e-invoicing rules by combining accurate data capture, configurable approval workflows and audit trails. Approved invoices, reimbursements and card transactions can then be exported directly into accounting systems like Xero↗ and QuickBooks↗, so your month-end close is faster and more consistent.
How to choose the right invoice automation solution
Start by deciding which features you need. Businesses with complex workflows should focus on automatic routing, reminders, and payments. But others may prioritise the compliance and accuracy that OCR invoice capture provides.
Next, find a solution that’s right for your company size. SMBs typically don’t need all the features of an enterprise-grade system — the price tag is usually a bit high, too. On the other hand, basic software may not be able to scale as your company expands.
Moss is ideal for SMBs. It’s simple and cost-effective but still offers sophisticated tools that support scaling businesses. Process transactions, manage hectic workflows, and maintain positive supplier relationships with accurate, on-time payments.
Automate transactions and maintain control with Moss
Invoicing software eliminates the data entry and email chains that slow down a growing business. Automation speeds up the process, shortens approval, and maintains accurate reports so AP can focus on your growing cash flow. If you’re looking for a tool that ticks these boxes, give Moss a try.
Moss’ invoice processing software helps you handle finance tasks more quickly and accurately. It speeds up data extraction, keeps an automatic record in your accounting tools, and gives finance teams clear oversight of spend through Moss dashboards, exports and notifications.
Enjoy faster, stress-free invoice capture with Moss↗.
