How to Automate Invoice Processing

To automate invoice processing, replace manual, time-consuming tasks with digital workflows that streamline accounts receivable. Instead of entering invoice details by hand, checking payments, and reconciling accounts one by one, automation ensures invoices are created, sent, tracked, and collected without constant manual intervention.

Digitize Your Invoicing System

The first step is moving away from paper-based or spreadsheet invoices and using a digital invoicing platform.

Why this matters:

• Reduces errors from manual data entry.
• Makes invoices trackable in real time.
• Provides secure storage and easy retrieval.

Example: Instead of sending PDFs via email, a business can use an invoicing tool that automatically generates invoices and logs them in the accounts receivable dashboard.

Standardize Your Invoice Templates

Consistency makes automation easier. Standard invoice formats ensure all required fields, like invoice number, customer details, itemized services, tax, and due dates, are included automatically.

Checklist for a standardized invoice template:

• Business name, logo, and contact details.
• Customer details.
• Unique invoice number.
• Clear payment terms (Net 15, Net 30, etc.).
• Payment methods accepted (credit card, ACH, etc.).

Automate Invoice Creation

With a digital system in place, automate how invoices are generated.

Options include:

• Recurring invoices for subscription or contract-based customers.
• Rule-based invoices that trigger when a service is completed or an order is fulfilled.
• Bulk invoice creation for multiple customers at once.

Example: A cleaning company with 50 clients can set up recurring invoices on the first of each month instead of manually creating each one.

Automate Invoice Delivery

Sending invoices manually wastes time and increases the risk of delays. Automated delivery ensures invoices are sent to customers immediately after creation.

Best practices:

• Send invoices via email directly from your invoicing software.
• Attach a payment link so customers can pay instantly.
• Enable tracking to see when a customer opens the invoice.

Enable Automated Payment Collection

The biggest advantage of invoice automation is linking invoices with payment options. Businesses can embed “Pay Now” buttons in invoices so customers can pay via credit card, ACH, or other methods.

Benefits of automated payment collection:

• Faster payments, fewer late invoices.
• Customers can choose their preferred payment method.
• Automatic payment recording in accounts receivable.

Example: Payment Options for Automated Invoices:

Automate Reminders and Follow-Ups

Chasing overdue invoices is one of the most time-consuming tasks for accounts receivable teams. Automated reminders solve this problem and send pre-scheduled notifications.

Example sequence:

• Day 1 – Send invoice with payment link.
• Day 7 – Reminder: “Your invoice is due in 7 days.”
• Day 30 (due date) – Reminder: “Your invoice is due today.”
• Day 35 – Past-due reminder with late fee notice.

Automate Reconciliation and Reporting

Automation should not stop at sending invoices. The real benefit comes from automatically reconciling payments with invoices and generating financial reports.

What this includes:

• Auto-matching incoming payments to open invoices.
• Generating accounts receivable aging reports.
• Providing real-time dashboards of outstanding payments.

This makes it easier for business owners and finance teams to see where cash is coming in and where collections are lagging.

Bonus Tip: Automate Invoices with DepositFix

DepositFix helps businesses simplify accounts receivable and integrates automated invoicing, payment collection, and reporting. With DepositFix, you can:

• Send invoices with embedded payment links.
• Accept ACH or credit card payments directly.
• Automate reminders and recurring billing schedules.
• Sync payments with your CRM for real-time reporting.

This way, you don’t just automate invoices, you automate the entire accounts receivable process, improving cash flow and reducing admin work.