The end of the month often brings a flurry of activity in the finance department, with teams racing against the clock to close the books.
This period, known as the month-end close, is crucial for accurate financial reporting and business decision-making.
Yet, traditional manual and spreadsheet-based processes can often make you want to throw your laptop out the window — tedious, slow and prone to errors.
Enter invoice automation — a game-changer for speeding up the month-end close process.
In this article, we’ll explore how invoice automation can transform your month-end, making it faster, more accurate and ultimately less stressful. Ready? Let’s dive in.
When it comes to closing the books at the end of the month, accounts payable (AP) often presents hidden issues that cause significant delays. For construction businesses, these challenges can be even more pronounced:
Traditional AP processes are heavily reliant on manual data entry. Each invoice needs to be manually input into your system, which is not only time-consuming but also prone to errors.
These mistakes can lead to significant rework, further delaying the month-end close.
Invoices typically need to go through multiple levels of approval before they can be processed for payment. In a manual system, this means physically routing invoices from one person to another, which can create delays.
If approvers are unavailable or the process isn’t clearly defined, these delays can pile up, extending the month-end close process by weeks.
Without real-time visibility into the status of invoices, it’s difficult to keep track of where each invoice is in the process. This lack of visibility can lead to invoices being overlooked or delayed, causing bottlenecks at the end of the month.
You need a clear view of which invoices have been processed, which are pending approval, and which have discrepancies that need to be addressed.
Many construction companies manage their finances using a mix of accounting software, spreadsheets and paper-based systems. This fragmentation makes it challenging to consolidate information quickly and accurately.
When data is scattered across different platforms, pulling it all together for the month-end close becomes a slow and error-prone task.
Construction businesses deal with a high volume of invoices from various suppliers, subcontractors and service providers. Each invoice needs to be reviewed, verified and processed. When done manually, this process can be incredibly time-consuming, especially if there are discrepancies that need to be resolved. Phew!
Having a faster month-end close isn’t just about saving time; it brings a host of other benefits that can significantly impact your construction business. Here’s why speeding up your month-end close is a game-changer:
One of the biggest advantages of a quicker month-end close is gaining immediate clarity on your costs. With all invoices processed swiftly, you get an up-to-date view of your expenses.
This real-time insight helps you make informed decisions about your budget, ensuring you stay on top of your financial health. No more waiting weeks to see where your money went — you’ll have the full picture right when you need it.
When you close your books faster, you free up valuable time and resources. Instead of spending days or even weeks bogged down in paperwork, your finance team can focus on more strategic tasks.
This means better resource allocation across the board. Your team can work on optimising budgets, planning future projects, or analysing financial performance — all activities that drive business growth.
Let’s face it, no one enjoys the crunch time of month-end closes. By streamlining the process, you reduce the stress and workload on your finance team. Happier employees are more productive and engaged, which contributes to a healthier workplace environment and better overall performance.
Automating your accounts payable also means less reliance on cumbersome spreadsheets. By consolidating all your financial data into one system, you eliminate the need for manual data entry and endless spreadsheet updates.
This not only saves time but also reduces the risk of errors, giving you cleaner, more reliable data to work with.
With faster invoice processing, you can pay your vendors on time, every time. This reliability strengthens your relationships with suppliers, leading to better terms and potential discounts. A reputation for timely payments can also make you a preferred customer, giving you leverage in negotiations.
Ready to make your month-end close a breeze? Invoice automation is here to save the day! Let’s dive into how this game-changing technology can speed up your month-end close and take the stress out of your finance processes:
Manual data entry can be a real drag, not to mention error-prone. With invoice automation, you can say goodbye to the tedious task of entering data by hand.
Invoices are automatically captured and processed, ensuring that all information is accurate and up-to-date. This not only saves you time but also reduces the risk of costly mistakes.
Chasing down approvals can feel like herding cats. Invoice automation streamlines the approval process by creating automated workflows. This means you get a clear audit trail, and you can see exactly who’s holding up the chain. With automated notifications and reminders, invoices move smoothly through the approval process, cutting down on delays.
Matching invoices to purchase orders (POs) manually can be incredibly time-consuming. With invoice automation, this process is automated. Invoices are matched to PO in real-time, and any discrepancies are flagged immediately. This helps prevent over-invoicing, allowing your team to catch errors before they impact the bottom line.
One of the biggest perks of invoice automation is the real-time visibility. You can track invoices through the entire payment cycle, from receipt to approval to payment.
This means you always know the status of your invoices, helping you manage your cash flow more effectively and avoid any surprises at the end of the month.
Forget about double-checking and rework. Automated invoice processing ensures that data is accurate from the get-go. This means fewer errors, less time spent on corrections and more confidence in your financial reports. With accurate data, you can make better business decisions and close your books faster. That’s helpful!
Compliance is crucial, especially in the construction industry. Invoice automation helps you stay on top of regulatory requirements by enforcing approval limits and maintaining a clear audit trail.
You can set limits for approvers, ensuring that all transactions are within the correct parameters. This reduces the risk of non-compliance and keeps your financial processes in check.
McKee Fehl, a New Zealand-based construction company, is renowned for completing challenging projects on time and within budget. Their portfolio includes notable industrial and commercial redevelopments.
Initially, McKee Fehl’s system for managing approvals and payments was almost entirely paper-based, leading to a 6-week delay in invoice processing. With Lentune’s invoice automation, they transformed their accounts payable turnaround from 6 weeks to just 3 to 5 days.
The system’s recognition technology and ability to route invoices for approval have greatly enhanced efficiency. Staff quickly embraced the new system, appreciating its ease of use and the significant reduction in errors.
Lentune’s support and customization have been excellent, providing a user-friendly interface and tailored workflows that perfectly fit McKee Fehl’s needs.
Invoice automation is a game-changer for construction businesses looking to speed up their month-end close.
By eliminating manual data entry, streamlining approvals and providing real-time visibility, it transforms a tedious, error-prone process into a smooth, efficient one.
As seen with McKee Fehl, adopting invoice automation can dramatically reduce turnaround times and improve overall financial management.
Ready to revolutionise your accounts payable process? Embrace invoice automation and experience a faster, more accurate and less stressful month-end close.