No matter what and how the economic climate is, invoicing processing is a vital business function. But, according to the current uncertainty of what lies next, it is difficult for a company to continue to purchase the materials & services that align its business with optimizing cash flow. Manual Management of the vendor invoices, spreadsheets, e-mail, and disconnected apps always makes the accounts payable team’s job more critical than it should be.
But through several AP managers & controllers who are working remotely, such manual-based processes have become unwanted or obsolete. The use of manual & semi-automated invoice processes in most accounts payable departments makes it almost impossible for Chief Financial Officers and other key decision-makers to get the valuable information they need.
Decision-makers can utilize the insights given by the information of accounts payable better deal with their cash at hand, its spending, frauds & risks (non-compliance), supplier-customer relationships, & financial operations by utilizing artificial intelligence (AI) in accounts payable.
How does AI help in accounts payable?
Digital-based technologies like artificial intelligence (AI) & machine learning (ML) enhance the accounts payable visibility & improves invoice processing. In an advanced Accounts Payable automation solution, the dashboards provide a real-time view of its AP staff & other stakeholders’ productivity, the status of the invoices, accruals & liabilities, the basis of exceptions, penalties due to late payment, early-payment discounts / the captured percentage of early-payment discounts, organization spending, and a few metrics from every PC, laptops, or mobile devices.
In Accounts Payable automation solutions, the Business intelligence tools examine the current data with past trends/patterns to make more informed and advanced decisions. With the help of AP automated solutions, you can also open the bottlenecks & the root causes of exceptions.
Improving the organization’s cash flows with the help of AI & AP automation:
- With the help of AI & ML in AP automation solutions, organizations can also do quick and accurate forecasting. Accounts payable software helps scan and examine unlimited data, which comes from any source and system for any specific time, to forecast the cash, cash-spending, & other essential data based on historical trends and patterns. For example, AI, ML & other invoice processing technologies can extract information that has been stored in repositories to analyze the cash flow trends.
- The insights of the AP automation platform obtain from historical trends and data like recurring invoices assist businesses in determining when it is best to pay cash or get benefits from early-payment discounts.
- AP automation solutions through AI and ML have also made it easier to maintain or manage compliance and fraud risks proactively. Data sets on multiple systems can examine the patterns that show compliance violations or fraud. Such risks can be based on corporate law and regulation/guidelines, historical operational records, & auditor recommendations. Red-Flagged transactions are automatically routed through electronic tools to the relevant individual assigned to review.
- In accounts payable software through AI and ML, companies can also verify & cross-check data, which has potentially eliminated, duplicated, or inaccurate supplier payments that affected the profit margins & necessitate the re-work process.