Top 7 Invoice Automation Software in 2024

Invoice automation software has become an essential tool for modern business operations. Companies are turning to automation solutions to simplify their invoicing processes and boost productivity quickly.

What is Invoice Automation Software and How Does it Work?

Invoice automation software uses technology to digitize and automate data capture, validation, and processing of invoices. It plays a crucial role in the accounts payable function, seamlessly managing invoices from receipt to payment. 

Businesses can minimize manual effort and potential errors by automating these processes using invoice processing software.

The working principles of invoice automation software involve leveraging technologies such as optical character recognition (OCR) and machine learning to extract and categorize invoice data automatically. These solutions are designed to integrate with existing ERP and accounting systems, ensuring the seamless flow of data and automating approval workflows.

Some key features and functionalities of automated invoice processing software include intelligent data capture, automatic validation, customizable approval workflows, real-time analytics and reporting, and seamless integration with accounting and ERP systems.

How to Choose The Best Invoice Automation Software?

When selecting the best automated invoice capture software for your business, there are several factors to consider:

1. Accuracy in Invoice Data Extraction

Automated invoicing software should accurately extract data from invoices, reducing the likelihood of errors.

2. Integration with ERP Systems and Accounting Software

Seamless integration with existing systems ensures smooth data flow and eliminates the need for manual data entry.

3. Automation of Approval Workflows

Invoice processing software should offer the capability to automate approval processes, reducing manual intervention and processing time.

4. Scalability and Customization Options

Businesses should consider the scalability and customization options to ensure the software can adapt to their growing needs and specific requirements.

5. Security and Compliance Features

Robust security measures and compliance features are essential to safeguard sensitive financial data and ensure regulatory adherence.

Top Invoice Automation Software in 2024

1. Docsumo

Docsumo is a leading invoice automation software that utilizes AI-powered technology to streamline the invoice processing workflow. With its advanced capabilities, It helps businesses automate data extraction, validation, and integration, saving time and improving accuracy in invoice processing.

Docsumo comes with a pre-trained invoice processing software API that can be customized for any invoice with little training. Users can also convert the extracted data into different formats, such as Excel/JSON/CSV/TXT, and feed it into their database or any third-party software.

a. Key Features

• Intelligent data capture using OCR technology
• Automated data extraction and validation
• Customizable approval workflows
• Real-time analytics and reporting
• Smooth integration with ERP systems

b. Industries

• Finance
• Healthcare
• Manufacturing
• Retail

c. Benefits

• Reduced processing time and manual errors
• Enhanced compliance and audit trail
• Improved operational efficiency
• Better visibility into financial data

d. Limitations

• Some issues with data extraction accuracy and integration complexities in certain ERP environments have been reported.

e. Pricing

Some pricing structures:

• Growth - Ideal for businesses & startups that require data capture from one or two document types. It starts at $500 per month.
• Business - Ideal for businesses to capture specific data points and train on data.‍
• Enterprise - Ideal for enterprises that wish to capture specific data points and train on their data.

2. FreshBooks: Small Business Accounting Software with Invoice Automation Features

FreshBooks is a popular cloud-based accounting software with invoice automation features tailored to small businesses. It simplifies invoicing, payment processing, and financial management tasks for entrepreneurs and small business owners.

a. Key Features

• Easy invoice creation and customization
• Automated payment reminders and late fees
• Expense tracking and receipt management
• Time tracking and project management tools

b. Benefits

• Simplified automated invoicing software and payment processing
• Improved cash flow management
• Enhanced client communication and tracking
• Seamless integration with banking and accounting systems

c. Limitations

Users have reported limitations in advanced reporting capabilities and scalability for large businesses on platforms like G2 and Capterra.

d. Pricing

FreshBooks offers pricing plans starting at 

• $7.60 USD/month for Lite Plan
• With tiered options up to $13.20 USD/month for the plus plan 
• $24.00 USD/month for the premium plan.

3. QuickBooks: Automated Invoicing and Payment Processing for SMBs

QuickBooks is a widely used cloud-based accounting software that offers invoicing and payment processing automation for small and medium-sized businesses (SMBs).

a. Key Features

• Automated invoice creation and sending
• Invoice tracking and payment reminders
• Multiple payment options, including PayPal, credit/debit cards, and bank transfers
• Online payment portal for customers to pay invoices
• Automatic bank reconciliation

b. Benefits

• Saves time and reduces errors associated with manual invoice processing
• Improves cash flow by enabling quicker payment collection
• Provides a central dashboard for invoice and payment tracking

c. Limitations

• Limited customization options for invoice templates
• Customer support can be slow at times

d. Pricing

Pricing plans for Freshbooks:

• $25 per month for the Simple Start plan 
• $150 per month for the Advanced plan, with a 50% discount for the first three months.

4. Bill.com: Cloud-based AP Automation and Payment Solutions

Bill.com is a cloud-based accounts payable (AP) automation software offering various business payment solutions.

a. Key features

• Automated invoice processing and approval workflow
• Multiple payment options, including check, ACH, and virtual credit cards
• Two-factor authentication for added security
• Integration with popular accounting software like QuickBooks, Xero, and Sage Intacct
• Automated payment reconciliation

b. Benefits

• Streamlines AP processes and eliminates manual data entry
• Provides a central location for AP management
• Reduces errors and improves accuracy

c. Limitations

• Limited customization options in terms of branding and visual look of the software
• Fees associated with virtual credit card payments

d. Pricing

• Pricing starts at $39 per user per month for the Essentials plan
• Up to $79 per user per month for the Enterprise plan

5. Xero: Online Accounting Software with Invoice Processing Automation

Xero is a cloud-based accounting software that offers invoicing processing automation, payment gateways, and reconciliation features suitable for various business types and sizes.

a. Key Features

• Automated invoice creation and sending
• Payment gateway integration with PayPal, Square, Stripe, and others
• Multi-currency billing and automatic exchange rate updates
• Real-time invoice tracking and payment reminders
• Secure online invoice payment portal

b. Benefits

• Streamlines the invoicing process with automated workflows
• Provides real-time business insights
• Billing in multiple currencies saves time and effort
• Integration with popular third-party apps enhances functionality

c. Limitations

• Lacks some advanced features offered by competitors
• Limited automation features in comparison to other software

d. Pricing

Xero offers pricing plans:

• Starting at $11 per month for the starter plan
• Up to $62 per month for the premium plan

6. Zoho Invoice: Automating Billing and Invoice Management for Businesses

Zoho Invoice is an affordable cloud-based accounting software that offers a suite of invoicing features and customizable templates.

a. Key Features

• Automated invoicing and recurring billing
• Multiple payment methods integration, including PayPal, Stripe, and Square
• Client Portal for customer self-service
• Integration with Zoho apps, including Zoho CRM and Zoho Books
• Time tracking and project management

b. Benefits

• Provides an optimized invoicing and payment solution
• Customizable templates to fit your business branding and needs
• Automates repetitive tasks for efficiency

c. Limitations

• Limited invoice customization options
• Some features require add-on fees

d. Pricing

Zoho Invoice pricing:

• Starts at $9 per organization per month for the Standard plan 
• Up to $29 per month for the Professional Plan.

7. Workday: Finance and HR Software with Invoice Management Capabilities

Workday is a cloud-based finance and HR software that offers robust invoice management capabilities suitable for medium to large businesses.

a. Key features

• Automated invoice processing and approval workflows
• Integration with popular accounting systems
• Mobile accessibility for workflow approvals on-the-go
• Real-time actionable insights
• Competitive and comprehensive audit and compliance tools

b. Benefits

• Streamlines finance workflows with automation features
• Enables better data-driven decision-making
• Multi-currency support and automatic exchange rate updates
• Security and compliance features meet enterprise standards

c. Limitations

• Expensive option, not suitable for smaller businesses with a limited budget
• Setup can be complex and requires a longer implementation process
• Pricing:
• Workday pricing isn't publicly available, so interested Businesses must contact their sales team for a quote.

d. Pricing

Workday offers a subscription-based pricing model, with costs varying based on the organization's size, the number of users, and the specific modules required. Pricing details are typically provided upon request, allowing businesses to tailor the package to their specific needs.

Advantages of Invoice Automation Solutions for a Business

1. Efficiency Gains in Accounts Payable Processing

Invoice processing software streamlines the AP process, reducing manual tasks and improving overall efficiency.

2. Reduction in Invoice Processing Time and Costs

Automated invoice capture software eliminates time-consuming manual data entry, resulting in faster processing and lower operational costs.

3. Improved Accuracy and Compliance in Financial Operations

Automation reduces the risk of human error and ensures compliance with regulatory requirements.

4. Enhanced Visibility and Control Over Cash Flow

With automated systems, businesses gain real-time visibility into invoice status, payment tracking, and cash flow management.

Where Does Docsumo Stack Up Amongst All Invoice Automation Software?

Docsumo is a leading automated invoice processing software with advanced OCR technology for accurate data extraction and quick processing. It is an automated invoice capture software that helps extract and integrate invoice data with accounting systems. With its user-friendly interface, customizable templates, and powerful data validation tools.

Key Benefits of Implementing Invoice Automation Software

Implementing invoice automation software offers a range of benefits to businesses, including significant time and cost savings achieved through streamlined processes and reduced manual tasks. 

By automating invoice processing, organizations can improve accuracy and compliance while minimizing the risks associated with human errors. Additionally, automated systems provide enhanced visibility and control over cash flow with real-time tracking, leading to improved financial management.

Quickly processing and increased efficiency in accounts payable operations further optimize business operations and drive overall performance.

Future Trends in Invoice Automation and Digital Transformation

The future trends in invoice automation and digital transformation include integration with AI and machine learning technologies to enhance data extraction accuracy and automation. Developing mobile-friendly solutions to support on-the-go invoice processing is also becoming crucial in the evolving landscape.

There is also an increased emphasis on data security and compliance within invoice automation software, accompanied by a growing trend towards integration with other business systems, such as procurement and inventory management, to enable end-to-end automation.

Choosing the Right Invoice Automation Software for Your Business Needs

When it comes to choosing the right invoice automation software for your business, a few factors should be considered.

Firstly, evaluate your specific needs, such as the volume of invoices, integration requirements, and scalability options. Additionally, consider factors like user-friendliness, customization options, and customer support. 

Final Thoughts

Invoice automation software offers numerous benefits, including efficiency gains, cost savings, and improved accuracy in accounts payable operations.

Choosing the right invoice processing software that fits your business needs is crucial to ensuring optimal results and efficiency in invoice processing. 

Book a demo with Docsumo Team to understand how we can help!

FAQs: Top 7 Invoice Automation Software

1. How does invoice automation software benefit small businesses?

Invoice processing software saves time and reduces costs for small businesses by streamlining AP processes and reducing manual tasks. It also improves accuracy and compliance, providing better control over cash flow.

2. Can invoice automation software integrate with other accounting systems?

Many invoice automation software solutions integrate with popular accounting systems like QuickBooks, Xero, and Sage Intacct, allowing seamless data transfer and process synchronization.

3. What are the key features when choosing invoice automation software?

Some key features include automated invoice creation and sending, payment gateway integration, customizable templates, advanced OCR technology for accurate data extraction, and real-time tracking and reporting capabilities.

4. Is invoice automation software secure and compliant?

Some reputable invoice automation software providers prioritize data security and compliance. To ensure the software meets industry standards, look for features like two-factor authentication, secure payment gateways, and adherence to data protection regulations.