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In the fast-paced world of finance and operations, efficiency and accuracy are critical, especially when it comes to processing invoices. However, a staggering 65% of UK businesses are still processing invoices manually which are fraught with challenges such as outdated systems that slow down workflows, increase error rates, and create bottlenecks in accounts payable. The good news? There is an answer. Automated invoice processing: a digital solution designed to address these very challenges.
The question many businesses want to know is what exactly sets manual invoice processing apart from automated systems? In this blog post we are going to break down the key differences to help you decide which method best suits your business needs.
Invoices are received (usually by email or paper), then manually input into accounting systems. This includes inputting vendor details, invoice numbers, amounts, and due dates often line by line. There is a high chance of manual errors – in fact, it’s thought that 40% of all invoice errors are due to manual data entry.
Uses Optical Character Recognition (OCR) and intelligent data capture to automatically extract and populate invoice data. Machine learning algorithms improve accuracy over time. This virtually eliminates data entry errors and manual human input freeing up resource and saving large amounts of time.
AP teams spend hours per day managing invoices, chasing approvals, and correcting entry mistakes.
Invoices are processed in minutes. Automated workflows route documents for approval, send reminders, and track statuses in real-time. It has been found that processing invoices manually takes on average 10 days, but as little as 3 days when using automation. Significantly speeding up the invoice cycle means suppliers get paid quicker and you can obtain early payment discounts as opposed to late payment penalties.
Higher costs due to labour, paper handling, printing, mailing, and storing physical documents. On average, the cost of processing an invoice manually is £15, but often much more. There is a common joke among AP departments about it costing more to process an invoice than it’s worth and this is why.
Lower per-invoice costs thanks to reduced labour and increased throughput. Some estimates suggest costs can be as low as £5 per invoice which is a saving of around 60-80%.
Limited visibility. Tracking the status of an invoice often involves emails, spreadsheets, and manual logging, but when manually processing invoices it’s very difficult and time consuming to view this information. A recent study revealed that 77% of procurement executives complain they cannot access real-time spend data in their business.
Real-time dashboards offer end-to-end visibility. You can instantly see invoice status, approvals, and payment progress. Automation offers better control and transparency.
Documentation is often scattered and retrieving information for audits or compliance reviews can be tedious.
Centralised, searchable databases and digital audit trails simplify compliance and make the organisation compliant with regulatory standards.
Difficult to scale. More invoices mean hiring more staff or overloading current teams.
Easily scales with business growth. A system that processes 100 invoices can often handle 10,000 with no additional overhead or significantly increased time, supporting business growth.
Manual invoice processing may still work for small businesses with low invoice volumes, but as organisations grow, the need for speed, accuracy, and control becomes unavoidable. Automated invoice processing isn't just a nice-to-have anymore, it has become essential for modern finance teams looking to optimise operations and drive strategic value to their business.
Ready to get started? Our procure-to-pay automation software available with Opera 3 SE provides cutting edge technology to transform your entire P2P process.
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Posted On: July 24, 2025
