How to transition from manual to automated invoice processing

Did you know that manually processing an invoice takes an average of 14.6 days? 

During that time, errors can creep in -ranging from incorrect billing addresses to more costly issues like overbilling or duplicate payments. These inefficiencies add up, making manual processing a slow and expensive way to manage invoices.

Switching to automated invoice processing speeds up approvals, reduces costly mistakes, and improves cash flow. But making the transition requires more than just new software - it takes a structured approach to shift from paper-based or manual digital invoicing to a fully automated system.

In this guide, we’ll break down how to move from paper-based or manual digital invoicing to a streamlined, automated system without disruption to your workflows.

The real cost of manual document processing

In 2025, the downsides of manual invoice processing greatly outnumber the upsides. According to a Billentis report, over 90% of invoices are still processed manually, leading to high costs and errors. The total cost of manually processing an invoice can reach up to $50 per invoice. 

A significant number of manually processed invoices also require some form of rework due to errors, further increasing costs and slowing down approvals.

Late payments are another major issue that comes with manual invoice processing. Delays often result in penalties, missed early payment discounts, and strained vendor relationships. In fact, a Corcentric survey found that nearly 44% of finance teams still receive invoices by fax, making delays even more likely.

Automation eliminates these problems. Businesses that automate invoice processing cut approval times, reduce errors, and gain better control over cash flow. The result? Lower costs, faster payments, and stronger supplier relationships. 

Here’s how to make it happen.

Transitioning to automated document processing: 8 best practices

1. Assess your current process

Before implementing automation, take a close look at how invoices are currently handled at your company. Map out the entire process from invoice receipt to approval and payment. Identify common pain points such as:

• Delays in approvals: Are invoices getting stuck at certain approval stages?
• Frequent data entry errors: How often do mistakes require rework?
• Lost or missing invoices: Is there a lack of visibility into outstanding payments?
• Lack of standardization: Are invoices arriving in multiple formats, making processing more complex?

Knowing these pain points helps you choose a solution that directly fixes them.

2. Set clear, measurable goals

Switching to automation is a smart move, but what do you want to achieve? Set clear, measurable goals, such as:

• Reducing invoice approval times by a specific percentage.
• Cutting down processing costs per invoice.
• Eliminating duplicate payments and data entry errors.
• Improving compliance with internal financial policies.

These targets will help guide decision-making and track success.

3. Select an automation tool that fits your business needs

Not all invoice automation solutions are the same. Look for a tool that aligns with your business needs by considering:

• Integration: Does it connect with your existing accounting or ERP system?
• Ease of use: Can employees adapt to it quickly with minimal training?
• Flexibility: Can it process invoices in different formats (PDFs, scanned images, e-invoices)? AI-powered OCR tools like Procys process invoices in any format - PDFs, scans, or e-invoices - without relying on fixed templates. 
• Cloud capabilities: If your team is working remotely, will your team have secure access to invoice data?

4. Standardize invoice formats

Automation works best with structured data. If your suppliers send invoices in multiple formats, standardizing them can improve efficiency. Consider:

• Requesting suppliers to follow a uniform invoice template.
• Implementing an automation tool that can recognize and extract data from various layouts, such as Procys.

The more structured your invoices, the faster they’ll be processed.

5. Digitize historical invoices

If your business has a backlog of paper invoices, digitizing them before transitioning to automation ensures a smooth shift. Scanning and uploading these documents into your new system creates a complete financial record and makes historical data accessible for future audits or reporting.

6. Train your team

Even the most advanced automation tool is only as effective as the people using it. Before your tool is fully implemented, provide hands-on training to make sure your team understands:

• How to submit invoices through the new system.
• How automated approval workflows work.
• How to handle exceptions or flagged invoices.
• Where to access reports and track invoice statuses.

Encourage feedback and address any concerns to drive adoption and make the transition easier for everyone.

7. Test before full implementation

Rolling out automation in phases can help identify issues before they disrupt daily operations. Start with a pilot program using a small batch of invoices, monitoring how the system handles them. Use this phase to:

• Identify any integration challenges with existing financial tools.
• Adjust your workflows to improve efficiency.
• Make sure all responsible employees are comfortable with the new process.

Once the test phase is successful, you can scale up the automation system across your organization.

8. Monitor and optimize

After implementation, keep track of key performance indicators (KPIs) to measure the impact of automation. Regularly assess:

• Processing time: How much faster are invoices being approved?
• Error rates: Has automation reduced the need for corrections?
• Cost savings:  How much has automation lowered processing costs?
• Vendor satisfaction: Are suppliers receiving payments on time?

Use these insights to refine workflows, fine-tune automation rules, and make adjustments that improve efficiency over time.

The bottom line

Moving from manual to automated invoice processing doesn’t have to be overwhelming. By taking a structured approach - analyzing your current process, setting clear goals, and choosing the right tool - you can improve efficiency and accuracy in 2025 and beyond.

With automation, companies can significantly reduce invoice processing time, cut costs, and improve vendor relationships through faster, more reliable payments.

It’s time to stop wasting time on manual processing.

Procys automates the entire workflow with AI-powered precision - cutting costs, eliminating errors, and speeding up payments.

Try it risk-free today: Process your first 50 invoices for free. See the difference automation makes.

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