In this article, we will explain all you need to know about invoice data entry: what is it, why automate it and how Parseur can help.
What is invoice data entry?
Invoice data entry (or invoice processing) is the process of inputting invoice details in a system. Every company needs to do invoice processing for many reasons. Most common reason is keeping their finance and accounting systems up to date with their expenses. Companies also need to do invoice data entry for tax declarations and audit trail purposes.
In many companies, invoice data entry still is a manual process. This is because suppliers invoices come in all shapes and forms, making automation difficult. But today, many suppliers send they invoices digitally by email to companies. Long gone is the time when you had to use expensive OCR (Optical Character Recognition) solutions on scanned invoices to do your data entry. Companies can now leverage email parser solutions like Parseur to automate and parse email invoices.
Why automate invoice processing?
If you’re working in an accounting department or as a CFO / CEO of a small company, you know that manual invoice data entry takes a lot time and effort. The effort to input an invoice in an accounting software can take up to a couple of minutes. Companies usually reduce this time by batching invoice processing (i.e. process them once in a day, a week, or a month depending on the volume). But with batching, they loose reactivity and also the process can lead to unwanted peaks of activity.
Moreover, mistakes and processing quality issues will happen when hand-keying invoices. Usually, quality issues are solved by implementing spot checks (checks on a random pool of invoices). But that, of course, also costs time and effort.
Automating your invoice data entry process saves you a lot of your company’s time while also improving processing quality and reliability. An automated workflow updates your systems in real time and reduces the spot checks to the minimum. Let your collaborators focus on your company’s core business instead of spending time doing manual processing!
Why use Parseur for parsing digital invoices and automate your invoice processing?
Parseur is an email parsing software. Use Parseur to extract data from invoices specific to the emails format you receive. If you often receive digital invoices from the same suppliers, Parseur will be perfect for invoice processing and transforming invoice emails into a row in an Excel or Google Spreadsheet.
In fact, our easy-to-use Template Editor adapts to all types of emails. It allows you to select the pieces of text you want to extract by a simple point & click interface. Once you’ve created a template for a particular format of invoice, all emails with the same format will automatically be transformed into data.
What fields to capture in an invoice?
Fields to capture will depend on your type of business and the local legislation.
The following fields are usually common on an invoice and you will want to capture them most of the times:
- Invoice date
- Invoice number (usually a unique sequential number identifying the invoice)
- Supplier name
- Supplier address
- Customer name
- Customer address
- Description and quantity of goods(or services rendered)
- Price excluding VAT
- VAT rate applied
- VAT amount
- Total price (including VAT)
The following fields are usually optional and you may or may not be required for your invoice processing:
- Invoice due date
- Supplier VAT identification number
- Customer VAT identification number
- Unit price of goods and services
- Shipping address
- Purchase order number (PO number)
- Any other required legal mention;. Terms and Conditions, reference to applicable legislation, legal mentions related to type of invoice (Reverse charge, Margin Scheme, Self Billing etc.)
As mentioned, this list is not exhaustive and will depend on your local legislation regarding accounting practices. Contact an accountant if unsure.
How to automate invoice data entry with Parseur?
Creating your own invoice email parser with Parseur is easy:
- If you don’t already have one, create an account. It’s free!
- Once registered, create a new mailbox and send your first invoice. Check out this step by step guide on how to get started with Parseur for more information
- Then, create a new template and add all the invoice fields you need
- Then, send more invoice emails to your parser and create a template for each different format
- Finally, download your data as Excel, CSV
- Alternatively, create a Google Sheet that will update automatically every time an invoice is processed. For more information, check out this article on how to convert emails to Google Sheets with Parseur
Note: at this time, Parseur only supports invoices that are part of the main email body. Invoices attached to emails are currently not supported.
That’s it! You’ve saved your business a lot of time and effort each month!