Comparing Automated Invoice Processing with Manual Methods for Financial Accuracy and Cost Reduction: Evidence from a Manufacturing Firm in India

Authors:

Dr. Dr. H. MICKLE AANCY M.B.A., M phil., Ph.D.,1 , Mr. Sriram Kumar B2 

1Dr. N. Venkateswaran, Professor and Dean Panimalar Engineering College, Chennai - 600123 2Mr. 2Sayee Hariharan B B, Student, Panimalar Engineering College, Chennai - 600123

Abstract

In today's competitive business landscape, organizations increasingly adopt automation to enhance operational efficiency, ensure financial accuracy, and reduce costs. This study investigates the comparative effectiveness of automated versus manual invoice processing within Vignesh Polymers India Pvt Ltd., a prominent manufacturer of plastic and polymer components. A structured questionnaire was administered to 201 employees drawn from a population of 420 using purposive sampling. To analyze the collected data, statistical tools including ANOVA, Pearson Correlation, Cronbach's Alpha Reliability Testing, and Binary Logistic Regression were applied via SPSS. Results indicate that automated invoicing significantly improves financial accuracy, reduces processing time, and leads to measurable cost savings relative to manual methods. Correlation analysis reveals strong relationships between automation adoption and reductions in data entry errors and human error. Reliability testing confirms the consistency of the instrument (α = 0.838). Binary logistic regression further demonstrates departmental variation in cost-saving success rates. Employee perceptions broadly support automation as a financially beneficial transformation for the organization. The study contributes empirical evidence to the literature on financial process automation within the Indian manufacturing context and offers actionable recommendations for practitioners.

Keywords: invoice automation, manual processing, financial accuracy, cost reduction, accounts payable, manufacturing, India