Skip to content
All field notes
Sector insights23 July 20265 min read

Invoice processing in financial administration: where it gets stuck

In most finance teams, invoice processing still comes down to opening, reading, and retyping. Every supplier delivers their invoice slightly differently: one as a PDF by email, another as a scan, a third as an Excel file. The result is that a staff member manually enters the invoice data into the accounting system, every single time. That consumes time you would rather spend on reconciliation, control, and closing.

By Yeslin Beljaars

Why invoice processing consumes so much time in finance

An incoming invoice has a straightforward path on paper: receive, check, post, pay. In practice, there is a step between receiving and posting that rarely gets counted: manually copying invoice lines into the system. Invoice number, supplier name, amount, VAT code, cost centre. Multiply that by dozens or hundreds of invoices per week and it becomes clear why the team is chasing copies at the end of the month instead of closing the books. On top of that, every accounting package uses its own fields, and supplier layouts rarely align with them.

The pattern: inconsistent formats, consistent frustration

What finance teams experience in practice is not one problem but a combination. Supplier A sends a PDF with a neatly formatted template. Supplier B sends a scanned receipt with skewed alignment. Supplier C sends an Excel sheet whose columns shift every quarter. Classic scan-and-recognise software, based on fixed templates, works well as long as the format stays the same. The moment a supplier changes their layout or a new supplier comes on board, the output is off and manual correction starts all over again. The absence of a template per sender is precisely why document processing with fixed templates always requires extra maintenance over time.

Where does it go wrong when connecting to the accounting package?

A second bottleneck lies in the step after extraction: the invoice data needs to land in the system, whether that is AFAS Profit, Exact Online, Twinfield, or another solution. Even with recognition set up correctly, the data still needs to be converted to the right format, the right general ledger account, and the right cost centre. If a purchase order number is missing from the invoice, the process stops and the invoice ends up in a queue. That queue effect compounds during busy periods, such as the end of a quarter or a year-end close. Teams that recognise this often have a shared mailbox full of invoices that nobody has processed because a reference is missing or an approval is still pending.

When does automating invoice processing make sense?

Automation only makes sense when a few basic conditions are met. First condition: volume. If you process twenty invoices per month, a structured manual process is probably cheaper than an automated solution. If you process hundreds of invoices per month, the calculation shifts quickly. Second condition: the process is defined. Automation makes existing steps faster, but it does not fix an unclear approval process. If nobody knows who approves which invoice, that is first a question for the organisation, not for the software. Third condition: the invoice data is usable. If incoming documents are structurally unreadable or critical information is consistently missing, it is worth raising with the supplier how they issue invoices before doing anything else.

What a better approach delivers

The gain from automated invoice processing is not only about speed. Staff who spend less time retyping make fewer errors and have more capacity for work that genuinely adds value: spotting discrepancies, calling suppliers about differences between invoice and order, or preparing the close. A system that flags differences rather than hiding them gives the employee control without requiring them to retype every line. The person approves; the system does the reading.

Seeing this in your own document flow?

Book a demo on your own documents

Frequently asked questions

What is invoice processing and how does it work?

Invoice processing is the process of receiving, checking, recording, and preparing incoming invoices for payment. In practice, that means extracting invoice data, comparing it against the purchase order or booking, posting it in the accounting package, and routing it for approval. In many organisations, the extraction step is still done manually.

How long must invoices be retained in the Netherlands?

Dutch businesses are required to retain invoices for a minimum of 7 years under the statutory retention obligation. In 2026, invoices from 2019 may therefore be destroyed. A longer retention period of 10 years applies to real estate.

What is the difference between automating invoice processing and OCR?

Classic OCR recognises characters on a document but does not understand context. Automated invoice processing with document AI reads the invoice, understands which field contains which value, compares against references such as a purchase order number, and delivers structured data to your accounting package. Errors or discrepancies are flagged for human review.

Which accounting packages can be connected to automated invoice processing?

Common packages such as AFAS Profit, Exact Online, Twinfield, Dynamics 365 Business Central, and SAP can in most cases be connected via an API or file export. The integration determines how smoothly the processed invoice data lands in your own system.