Best Invoice Capture Software | The Ultimate Guide

Manual invoice processing is inefficient. A competitive disadvantage. As businesses push for digital transformation, invoice capture software is a critical tool. Helping finance teams automate and streamline their accounts payable processes while reducing costs and errors. This post will help you understand how to transform your financial operations by choosing the best solution for your business.

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What is invoice capture software?

Invoice capture software is an intelligent document processing solution that automates the extraction, validation, and processing of invoice data. Using artificial intelligence, machine learning, and optical character recognition, this advanced technology will reduce manual data entry and create streamlined automated workflows.

Invoice scanning vs invoice OCR vs invoice data capture

Let’s clear up any confusion…

• Invoice scanning is the first step in digitalizing a paper invoice. Using a scanner or digital app to transform into a digital format. But, it doesn’t understand or extract information.
  
• Invoice OCR technology uses algorithms to identify and extract text from the scanned invoice. Then translate it into a format that’s machine readable. Its superpower is that it can recognize and understand characters and texts in the invoice. Converting the image into structured data that’s editable and searchable.
  
• Invoice data capture combines these technologies into a single process from scanning to data extraction and interpretation.

How invoice capture software works

To evaluate available invoice capture software, let’s look at the process flow and underlying technologies.

Document intake

• Captures invoices through multiple channels including email, EDI, scan, share drives, API
• Supports diverse file formats including PDF, XML, UBL, JPEG, PNG, TIFF
• Handles both structured and unstructured documents
• Provides automatic document classification and sorting capabilities

Data extraction

• Optical character recognition (OCR) technology converts images to machine-readable text
• AI and machine learning identify and extract key fields
• Performs automatic line item detection and categorization
• Supports multiple languages and currencies for global operations
• Continuously learns from corrections and improvements

Validation and verification

• Validates extracted data against your specific business rules
• Cross-references information with existing records and master data
• Flags discrepancies for human review
• Matches invoices with purchase orders and receiving documents

Processing and workflow integration

• Routes invoices through designated approval workflows
• Integrates seamlessly with your existing ERP and accounting systems
• Enables digital approval processes with audit trails
• Facilitates payment processing initiation

Benefits of invoice capture software

Businesses face increasing pressure to optimize operations and reduce costs while maintaining accuracy and compliance. The digital transformation of your accounts payable processes isn’t a trend. It’s life or death for your business. Here’s why…

Time and cost efficiency

• Reduces processing time from weeks to minutes
• Lowers per-invoice processing costs from $10-15 to $2-3
• Eliminates manual data entry requirements
• Minimizes document storage and handling costs

Accuracy and compliance

• Achieves accuracy rates of 95% or higher
• Ensures consistent application of business rules
• Maintains detailed audit trails for security and compliance
• Reduces risk of fraud through automated validation

Scalability and growth

• Handles increasing invoice volumes without increasing headcount
• Adapts to new invoice formats and suppliers automatically
• Supports multi-entity and multi-currency operations
• Enables global expansion without operational complexity

Strategic benefits

• Improves vendor relationships through faster payments
• Enables early payment discount capture
• Provides better cash flow visibility and control
• Contributes to environmental sustainability goals

Best invoice capture software solutions

The market offers various solutions with different strengths and specializations. Here’s a detailed analysis of the top vendors to help you make an informed decision…

Rossum | Intelligent document processing 

Intelligent invoice capture software without templates.

The invoice capture solution you choose should automate accounts payable workflows end to end. Eliminate manual data entry, convert PDF invoices into digital documents, and seamlessly integrate with your ERP system.

If it can’t do this, as a minimum, keep looking.

Rossum’s cloud-native AI document processing solution brings machine learning, computer vision, natural language processing (NLP), robotic process automation (RPA), and our advanced AI engine – Rossum Aurora – to the table. 

Unlike traditional template-based intelligent document processing solutions, Rossum’s technology mimics human visual understanding to process documents intelligently. The platform adapts to new invoice formats without requiring manual template creation.

Key features…

• Cognitive data capture with 95%+ accuracy
• Self-learning capabilities that improve over time
• Multi-language support for global operations
• Custom validation rules and business logic
• Automated line item extraction
• Real-time collaboration tools
• Extensive API for custom integrations
• Built-in validation workflows

Accurate data capture

Working with multiple invoice layouts? Not a problem. Our AI OCR software reads like a human, adapting to changes in style and format.

If you’d like to learn more about OCR technology, take a look at our blog.

Simplified downstream process

Reduce time-consuming and inefficient processes. Our intelligent invoice capture software will convert unstructured invoices into standardized formats. Then process them according to predetermined policies to reduce the risk of fraud and noncompliance.

Generative AI is Fueling a Surge in Invoice Fraud… discuss.

Learns from every keystroke

With human-like intelligence, our data extraction engine learns over time, from every users’ mouse movements and keystroke.

Medius | AP Automation

Accounts payable software that links invoice capture, processing, and payment.

Medius offers a cloud-native AP automation solution that emphasizes touchless processing and fraud prevention. The platform has a user-friendly interface and impressive matching capabilities.

Key features…

• AI-powered matching engine
• Built-in fraud detection
• Real-time cash flow visibility
• Automated coding suggestions
• Mobile approval app
• Advanced analytics
• Global tax compliance
• Payment automation
• Spend analysis

Basware | P2P solution

100% invoice capture from any source.

Basware provides an end-to-end procure-to-pay solution with strong invoice automation capabilities. The platform stands out for its extensive supplier network and advanced analytics capabilities.

Key features…

• 100% invoice capture from any source
• Global e-invoicing network
• Advanced analytics and reporting
• Dynamic discounting
• Automated matching and coding
• Supplier activation and management
• Mobile accessibility
• AI-powered insights
• Contract compliance monitoring

AvidXchange | Invoice capture & payment automation

AI-powered invoice automation software.

AvidXchange is a solution that specializes in automating accounts payable processes for mid-market companies. The platform combines invoice capture with payment automation.

Key features…

• Purchase order matching
• Automated approval workflows
• 24/7 payment processing
• Supplier payment optimization
• Real-time reporting
• Fraud prevention tools
• Custom workflow creation
• Multiple payment options
• Bank-level security
• Dedicated supplier services

Yooz | Purchase-to-pay automation solution

Real-time cloud P2P automation.

Yooz is a cloud-based solution that provides real-time AP automation using AI, RPA, and deep learning technologies. The platform is known for its quick implementation time and ease of use. Designed for mid-market companies looking to process 100 invoices per month.

Key features…

• Real-time purchase-to-pay automation
• AI-powered fraud detection
• Smart document classification
• Automated GL coding
• Mobile approval app
• ERP integration
• International tax compliance
• Custom workflow creation

Sage Intacct | ERP accounting software

From scale-ups to global enterprises. Best-of-breed, cloud finance software.

Sage’s AP automation solution integrates seamlessly with Sage ERP systems and provides automated invoice processing capabilities. The platform is designed to scale with growing businesses.

This AP automation software has an intuitive user validation interface and customizable reports from its dashboard. Easy to navigate, and with a strong customer service team, you can improve efficiency. Manage your IT costs and find real-time insights.

Key features…

• Native Sage ERP integration
• Automated data extraction
• Custom approval workflows
• Mobile approval capabilities
• Vendor self-service portal
• Payment automation
• Detailed audit trails
• Advanced security controls
• Real-time dashboard analytics

BILL | Accounts payable automation software

Automate the creation, sending, and management of invoices for faster payment.

Connect Rossum with BILL and you’ll simplify AP processes – for small and medium-sized businesses. This cloud-native AP software combines intelligent capture with payment automation and international payment capabilities. 

Key features…

• AI-powered data capture
• International payments
• Multiple payment methods
• Approval workflow automation
• Vendor management
• Mobile app access
• Bank-level security
• Accounting software sync
• Real-time cashflow visibility

Stampli | AP automation & invoice management software

See how finance teams process invoices, approval workflows, and more with Stampli’s AP automation solution.

Stampli takes a collaborative approach to AP automation, combining intelligent invoice capture with communication tools. 

Its AI-powered solution, Billy the Bot™,” learns from user interactions to improve automation. Dealing with almost all of your capture, coding, routing, fraud detection, and other manual tasks.

Key features…

• AI-powered capture, coding, matching, approvals
• Collaborative communication
• Real-time reporting and insights
• Flexible workflow design
• Mobile accessibility
• Multi-entity support
• Payment automation
• Advanced search capabilities

Tipalti | End-to-end AP automation

Finance automation that puts you in charge.

Tipalti provides end-to-end AP automation with comprehensive global payment capabilities. The platform is well-suited for organizations with international operations and complex payment requirements.

Key features…

• Global payment processing
• Multi-entity support
• Tax compliance automation
• Supplier management portal
• OFAC screening
• Payment reconciliation
• Currency conversion
• Fraud detection
• Real-time reporting

Implementation best practices for invoice capture solutions

Successfully implementing intelligent invoice capture software means detailed planning, execution, and ongoing optimization. Here’s how to ensure your implementation delivers maximum impact.

Strategic planning

You’ll need preparation and stakeholder alignment. This step sets you up for all subsequent activities. Basically, it determines your project’s success…

• Audit current processes and identify pain points
• Define clear objectives and success metrics
• Involve key stakeholders – finance, IT, ops
• Map current and future workflows
• Assess technical requirements and constraints
• Draw up a detailed project timeline
• Define your budget
• Establish governance structure
• Develop a risk mitigation strategy
• Plan change management approach

Technical implementation

A structured approach to technical implementation will mean seamless deployment and adoption. And minimized disruption to existing operations.

• Choose a solution that aligns with your business needs and volume
• Establish integration with existing systems
• Set up user roles and permissions
• Define workflow rules and routing
• Implement validation controls
• Configure exception handling
• Set up reporting and analytics
• Test system functionality
• Train system administrators
• Document technical procedures

Training and adoption

Comprehensive training and support are critical for encouraging user adoption…

• Develop role-based training
• Conduct hands-on training – ongoing 
• Create user guides and documentation
• Establish support procedures
• Monitor user adoption rates
• Address user feedback and concerns
• Create FAQs and troubleshooting guides
• Monitor system usage patterns
• Identify improvement opportunities

System optimization

Continuous improvement ensures your invoice capture strategy continues to deliver value and adapts to your evolving business needs…

• Monitor key performance metrics – accuracy rate, processing time
• Collect and analyze user feedback
• Review and adjust automation rules
• Optimize workflows based on usage data
• Enhance validation rules
• Improve exception handling
• Update training materials
• Implement system upgrades
• Review security settings

Measuring success and ROI

To understand the impact of your invoice capture implementation you’ll need to track your key metrics. And perform regular assessments of goals realized.

Key performance indicators

To measure performance and business impact, track the following KPIs…

Operational metrics

• Average processing time per invoice
• Processing cost per invoice
• Accuracy rates and error reduction
• Exception handling time
• Invoice processing volume
• Early payment discount wins
• Late payment reduction
• Staff productivity gains

Financial metrics

• Total cost savings
• ROI calculation
• Working capital improvement
• Processing cost reduction
• Staff cost allocation
• Technology cost impact
• Storage cost savings
• Compliance cost reduction

Invoice capture software takeaways

Success with invoice capture software depends on several key factors…

• Clear objectives
  Define specific goals and metrics for your automation project
  
• Stakeholder buy-in
  Ensure all teams involved understand the benefits and support the change
  
• Extensive training
  Invest in comprehensive training for all users to maximize system usage
  
• Continuous improvement
  Regularly review and optimize your processes based on system data and user feedback

Choosing the best invoice capture solution for your business

Selecting and implementing the best invoice capture software is a decision that impacts your organization’s operational efficiency and financial performance. Transform your AP operations by evaluating available solutions. Follow implementation best practices and maintain a focus on continuous improvement. 

You’ll win big!

Looking for a robust, flexible solution with industry-leading accuracy and language support? Rossum’s intelligent document processing platform offers the perfect combo of advanced technology and practical usability. With its self-learning capabilities and extensive integration options, we provide a future-proof solution for enterprises around the world.

Take the next step in your AP automation journey. Sign up for a free demo with one of our experts, or take our platform for a spin and grab a 14-day free trial. 

FAQs about invoice capture software