The future of invoicing, AP, and AR is invisible, embedded, and automated

Each company needs some kind of Accounts Payable process in place, no matter the size and scale of the business. After all, the bills need to get paid somehow.

The larger the business, the more expensive and time consuming AP processing can be. On average, it costs $15.50 to process each invoice.

Even more alarmingly, over 50% of bills are paid after their due date.

70% of supplier invoices are being received in document form.  

There are many benefits of automating invoice processing, including:

●      Fewer errors and overpayments

●      Up to 80% reduction in a company's procure to pay cycle

●      The approval and overall processing time of an invoice is sped up exponentially

●      Securing more discounts for early payment

Behind most companies' Accounts Payable (AP) processes is a huge opportunity to improve efficiency and the bottom line. However, it can be a tricky business with expense management technology containing many complex pressure points.

One of the main reasons AP functions can be such a challenge to streamline, is the intensive nature of the document processing. Larger businesses receive a constant influx of bills, many of which have specific processing requirements.

This process is expensive, full stop. There's a lot at stake if a substantially sized invoice was mistakenly paid twice or paid to the wrong supplier. As such, companies pay a lot of money for the human resources to have approval and review processes in place to ensure everything is in order before it gets to the payment stage.

Due diligence is key in human data entry processes, so some technologies such as Optical Character Recognition, or OCR as its known, have been put to good use in Accounts Payable offices around the world.

Whilst OCR is impressive on one hand, on the other, it has been known to be more unreliable and inaccurate than you would like to base your accounts on.

In fact, despite the promise of an increase of 40-50% in efficiency, some businesses that employed OCR technology have since become so frustrated, they have reverted back to a totally manual data entry system.

The light at the end of the tunnel

There is hope, with the promise (and delivery) of clever up-and-coming systems. The legacy systems remain ineffective, however the modern machine learning of specialized BPM systems combined with human-in-the-loop processing is capable of a very impressive 99% accuracy.

That's not the only benefit. There are a wealth of advantages to the automation of modern invoicing.

Organisations have the opportunity to tighten up their processes and remove the steps that cause friction. Efficiency is then increased which is of course the main goal.

The number of invoices a staff member can process manually can be doubled with use of intelligent software such as OCR. Sounds great doesn't it? However, we can do better than that. With human-in-the-loop technology, you can multiply that number by up to 5 times. Imagine what that means for your bottom line over the course of time!

With a smooth-flowing system, you will find accounts are getting paid faster, and therefore find yourself eligible for more early payment discounts. This could mean huge savings in the long term. It also helps to strengthen relationships with your key suppliers and maintain a positive business reputation.

With a well-established automated system, you will find less need for exception workflows which can save you serious time. And as we know, time is money.

What does an effective automated invoice processing system look like?

●      Using software to extract invoice data from the document, and fill that information into your Accounts Payable system.

●      Automation in price-matching, purchase order linking, streamlining workflows, general data entry and more!

●      A far less time intensive process from start to finish, with artificial intelligence and machine learning.

How does it actually work, compared to a traditional system?  

In a traditional system, the process begins with receipt of the invoice into the business (usually via the Accounts area). It then goes through a number of steps, up to 15 of them in fact, before it makes it to the payment stage. Given the volume of invoices some companies are churning through, this is a significant amount of labour to use per document.

In comparison, automated processing gets straight to the point. The invoice arrives and is sent through to the digital system. The data is then converted into a user-friendly, searchable document. Invoices are then workflowed through for approval.

With an estimated 3700+ invoice processing applications in offer, it's important to choose the right solution for your needs. The key factors to look for are;

●      The way it handles recurring billing

●      Ease of one-time invoicing

●      Varied charging models - metered, volumed and tiered

●      Self-service

●      Subscription management

●      Customisation

●      A unified console

●      Incorporation of company branding

Reporting and reviewing is a breeze

Due to the transparency of an invoice automation system, the monitoring and reporting is everything you could hope for - know exactly what is being spent as well as when and where.

The intelligent reports provide a useful insight into making fast yet sensible business decisions.

International business is no hassle

An automatic professing tool allows business connections to be made and maintained all over the globe. Better yet, there's no paperwork in sight.

If international business is relevant to your needs, opt for a multilingual program which allows for localised tax regulations.  

Operations are better than ever

Invoice processing software is a huge advancement for anyone who is growing tired of manual paper-based invoice processes.

Along with being able to ditch the huge piles of paper, Accounts Payable can also take advantage of automated billing - ensuring services are linked to purchase orders and receipts and provide instant checking of payment status.

The future is automated

Automation solutions are where a lot of companies are moving towards, and with good reason. It can have huge efficiency wins for companies on many different levels. These systems are the key for companies to transform their manual accounts payable processes into a well-oiled and highly efficient machine.

The sooner a company welcomes these advances and jumps on board to adapt and grow with the future technologies, the better off they will be. There is certainly no room for businesses who are stuck in the past.