How to Automate Invoice Processing in Singapore
A practical guide to automating invoice processing for Singapore SMEs. Learn what works, what doesn't, and how to get started without a massive IT project.
TL;DR: Invoice automation cuts processing cost from $12-16 to under $3 per invoice. Start with one supplier, prove it works, then expand.
Your accounts payable team processes invoices manually. They open each one, type the vendor name, copy the invoice number, enter line items. According to SAP Concur research, this costs $12-16 per invoice when you factor in labor, errors, and rework.
Automated systems bring that down to $1.45-3 per invoice—an 80% reduction.
The Real Numbers
The math is straightforward. If you process 200 invoices monthly at $15 each, that’s $3,000 in processing costs. Automation drops it to around $500, saving $2,500 monthly. Over a year, that’s $30,000 back in your business.
Beyond direct costs, industry studies show manual data entry has a 1-3% error rate. Each error can cost $53 to fix when you account for staff time, system corrections, and payment delays. With automation, error rates drop to 0.1-0.5%.
Processing time matters too. Manual processing takes about 15 minutes per invoice. With AI-powered extraction, that drops to 3 minutes—mostly spent on verification rather than data entry.
What Invoice Automation Actually Does
Invoice automation software reads your invoices (PDFs, scans, or email attachments), extracts the data (vendor, amounts, line items, dates), and formats it for your accounting system. Your team reviews the output and approves it. Instead of 15 minutes of typing, it’s 30 seconds of checking.
The key difference between basic OCR and modern AI-powered tools is accuracy. Traditional OCR just converts images to text—it doesn’t understand that “$1,234.56” is a total amount or that “Net 30” means payment terms. AI-powered extraction understands document structure and context.
How to Get Started
Start with one high-volume supplier. Don’t try to automate everything at once. Pick your vendor with the most invoices, get that working perfectly, then expand. This approach reduces risk and proves ROI before larger investment.
Before choosing a solution, know what you need: invoice number, date, vendor details, line items, tax amounts, totals. Know where this data needs to go—Excel, Xero, SAP, or another system.
For Singapore businesses, look for solutions that handle GST correctly and work with local supplier formats. Starting November 2025, newly incorporated companies registering for GST must use InvoiceNow, with full implementation for all new GST voluntary registrants by April 2026.
What Good Looks Like
Run a pilot with 20-30 invoices. Compare the output against manual entry. Measure accuracy, time saved, and how exceptions are handled. If your pilot shows 80%+ time savings with acceptable accuracy, expand to more suppliers.
The goal isn’t to eliminate your AP team—it’s to free them from data entry so they can focus on supplier relationships, early payment discounts, and cash flow management.
Related
- The Real Cost of Manual Document Processing — Calculate your current costs
- SmartDoc Invoice Extraction — How we automate invoice data extraction
- Invoice vs PO Validation — Automate 3-way matching