AI-Driven Invoice Management: Digitize and Automate Your Billing

What are invoices?

Invoices are commercial documents that detail the transaction between a seller and a buyer. They are the tangible representation of a commercial agreement, recording the goods or services provided, along with their cost and agreed payment terms.

In essence, an invoice serves as a legal and financial record of a business transaction. It is a crucial tool for both the seller and the buyer, as it establishes the financial obligations of both parties and provides a clear trail of the transactions carried out.

Types of business invoices

Sales Invoice: Sent to customers after a product or service is delivered.

Purchase Invoice: Received from suppliers for goods or services bought.

Proforma Invoice: A preliminary document issued before the sale is finalised.

Recurring Invoice: Automatically generated for ongoing services or subscriptions.

Rectifying Invoice: Issued to amend mistakes in a previous invoice.

Intercompany Invoice: Used for internal transactions between entities within the same company group.

Digital Invoice: Any invoice that is created, sent, or stored electronically.

Electronic Invoice (e-Invoice): Structured format transmitted digitally, often required for compliance.

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“Dost has allowed us to scale our financial department. It is the solution that was missing in the market.”

Driss Khouja

CFO, Housfy

'What surprised me most about Dost was their ability to adapt to our specific requirements. We didn't have to change our processes; we just had to improve them.'

Josep Boqué

Finance Director, IASO

“For us, efficiency and precision must be maximum. Dost has allowed us to automate invoices management.”

Jaime de Barrio

Cofounder & COO, Cliniclic

What is invoice management?

Invoice management is the end-to-end process of receiving, verifying, approving, and paying invoices in a business. From sales invoices issued to clients, to purchase invoices received from suppliers, managing invoices effectively is critical to maintaining healthy cash flow and strong supplier relationships.

With the rise of AP automation software and digital transformation, businesses can now automate the entire invoice lifecycle, from invoice creation to reconciliation.

Why invoice management matters

Efficient invoice management is essential for businesses of any size. It directly impacts financial health, internal productivity, and external relationships.
Here’s why it matters:

Cash Flow

Effective invoice management ensures that payments are processed on time, which keeps cash flow predictable and helps businesses avoid liquidity issues.

Compliance

Standardised processes and proper documentation help businesses stay compliant with tax regulations and e-invoicing laws in various jurisdictions.

Efficiency

By reducing manual data entry and automating approvals, businesses free up finance teams to focus on higher-value tasks and decision-making.

Visibility

Centralised invoice tracking improves transparency across departments, allowing for better budgeting, forecasting, and audit readiness.

Relationships

Timely and accurate invoice handling strengthens trust with suppliers and internal stakeholders by reducing errors and disputes.

Automating invoice management with AP software

Accounts payable automation software eliminates manual steps in the invoice process by:

Extracting invoice data using OCR and AI

Matching invoices with POs and delivery notes

Routing for multi-level approval

Scheduling payments automatically

Logging all actions for audit readiness

With automated invoice management, finance teams gain real-time visibility, reduce operational costs, and scale their workflows without adding headcount.

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Best practices for business invoice processing

Implementing best practices in your invoice workflow helps reduce errors, accelerate approvals, and improve cash flow. Below are key strategies to optimise your invoice processing with a focus on consistency, automation, and compliance.

Use standardised invoice formats

Maintain consistency across all invoice templates to reduce confusion and errors.

Set clear
payment terms

Include due dates, accepted payment methods, and penalties for late payment to improve collection timelines.

Enable invoice online submission

Allow vendors to submit invoices electronically, speeding up processing and reducing manual handling.

Automate with AP software

Leverage accounts payable automation software to eliminate repetitive tasks and streamline approvals.

Monitor key metrics

Track invoice cycle time, exception rates, and approval delays to identify areas for improvement.

Classify invoice types

Separate and handle different types of business invoices (recurring, intercompany, rectifying) with tailored workflows for each category.

Why choose Dost for invoice management?

Dost combines advanced OCR, AI and native ERP integrations to streamline invoice management:

Full extraction

Extract and digitise 100% of incoming invoices, regardless of format or source.

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Smart reconciliation

Automatically validate and reconcile invoices against purchase orders and delivery notes.

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Flexible invoice types

Manage all invoice formats including sales, recurring, intercompany and rectifying invoices.

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ERP integration

Seamlessly connect with your existing ERP or accounting system for smooth data flow.

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Automated workflows

Set up multi-level approvals, schedule payments, and trigger notifications without manual input.

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Regulatory compliance

Ensure full adherence to local e-invoicing regulations and audit standards.

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Dost helps finance teams go from reactive to proactive, turning invoice handling into a strategic advantage.

Frequently asked questions

Everything you need to know about invoice managment.

What is invoice management software?

Invoice management software helps businesses automate the intake, approval, and payment of invoices. It reduces errors, improves visibility, and accelerates the entire accounts payable process.

How does AP automation software work?

AP automation software digitises incoming invoices, matches them with purchase orders and receipts, routes them for approval, and schedules payments — all from a centralised platform.

What is a recurring invoice?

A recurring invoice is issued automatically at regular intervals, typically for subscription-based services or retainers.

Can I manage proforma and rectifying invoices with Dost?

Yes, Dost supports multiple invoice formats including proforma and rectifying invoices, offering full visibility and compliance.

What is the difference between a digital invoice and an electronic invoice?

A digital invoice refers to any invoice handled electronically (e.g. PDF), while an electronic invoice (e-invoice) uses a structured format for full automation and compliance.

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Invoice: Efficient management for your company

What are invoices?

Types of business invoices

“Dost has allowed us to scale our financial department. It is the solution that was missing in the market.”

'What surprised me most about Dost was their ability to adapt to our specific requirements. We didn't have to change our processes; we just had to improve them.'

“For us, efficiency and precision must be maximum. Dost has allowed us to automate invoices management.”

What is invoice management?

Why invoice management matters

Automating invoice management with AP software