Accounts payable and management is a vital business procedure that allows an organization to handle its financial responsibilities successfully. An organization should record a liability in its accounts based on the invoice amount after it orders items and receives them before paying for them. Accounts payable refers to the short-term liability owed to suppliers, vendors, and others
Efficient Accounts payable and its management are critical for any business because of the following reasons-
- It is mainly responsible for prompt payment of the entity's bills. In addition, it ensures high credit ratings and enforces long-term relationships with vendors.
- Vendors will assure an ongoing supply of supplies and services only if invoices are paid on time, which will aid in the systematic flow of business operations.
- Well-managed and efficient accounts payable procedure ensure no late fees or penalties are levied.
- Efficient accounts payable process guarantees outstanding invoices are tracked and paid on time and prevents duplicate payments.
- It gives business leaders a holistic view of financial flows.
- AP fraud and malicious activities can be eliminated significantly if a strict accounts payable process is enforced.
Enterprises must manage their accounts payable departments accurately to ensure smooth operations and for their financial statements to be complete and correct.
Automating Accounts Payable Process
Ensuring accounts payable processes are resilient, businesses are looking forward to leveraging advanced technologies - to build process strength and ensure smooth operations. Deploying AI and Automation have been at the forefront of technology adoption for AP teams. It will minimize manual effort associated with invoice processing, save costs and increase productivity. Automation also reduces human errors and makes operations more efficient.
AP teams can now build zero-touch invoice processing workflows with Kanverse. It eliminates a majority of manual activities. Companies can improve performance by using AI-based OCR solutions to extract data from invoices and pre-defined business rules framework to validate extracted data. Such software products integrate into the company's ERP systems and automatically publish the processed data. AP invoice automation software like Kanverse also offers multiple value-added services. They also boost corporate efficiency in the long run.
AI is opening a vast scope for AP Invoice Automation
Advancements in AI technology open up a massive field of prospects for modern-day businesses with enormous development potential. AI-powered automated processes combine the power of automation with AI that helps organizations to build resilient business processes. It opens new paths for enterprises to undergo massive internal transformation projects to accelerate task resolution, lower costs, and boost productivity.
The first stage in a successful digital transformation journey is to identify process bottlenecks typically established by people performing time-consuming manual activities. Following that, it's necessary to assess the possibilities of automating manual operations.
AI powered invoice processing
Traditional AP teams relied on OCR technology to build new templates to extract data from invoices. However, the invoices witnessed by any enterprise are of different structures - in such situations, the template-based approach would fail. Native OCR-based solutions also flounder to extract data from handwritten invoices. Manually creating templates for extraction was time-consuming and ineffective.
The latest generation of automated invoice processing technology products like Kanverse zero-touch AP invoice automation uses AI and machine learning models to extract data from invoices. It ensures up to 99.5% excellent extraction accuracy and saves time by eliminating the painful template creation process. In addition, it can detect the overall structure of an invoice and extract all the relevant field and line-item data. Advanced machine learning technology also aids the system in identifying specific invoice patterns. It frees up agent time and increases the productivity of the AP team while also saving money and time.
About the Author
Aritro Chatterjee, Product Marketing, Kanverse.ai