As new technologies redefine the way that business enterprise functions are conducted, Accounts Payable (AP) departments are not immune from change. Like many core business functions, AP is evolving, with Intelligent Document Processing (IDP) at the heart of the revolution.
IDP is a game-changing technology that harnesses the power of Artificial Intelligence (AI), Optical Character Recognition (OCR), machine learning, and natural language processing to transform the way that businesses handle and process invoices and other financial documents.
In this article, we’ll explore why IDP is poised to be the future of Accounts Payable.
What Are The Challenges Facing AP Departments?
Traditionally, Accounts Payable departments have faced several challenges. Manual data entry is notoriously time-consuming and prone to errors which can lead to delays in payments, data and document mismatches, and wasted time tracing and correcting exceptions. Slow processing times due to manual workflows hinder efficiency, while a lack of real-time visibility can impede effective cashflow management and decision-making.
While many AP departments have, rightly, adopted automation to improve efficiency and expedite invoice processing, progress in this area has stagnated. However, Intelligent Document Processing promises even faster and more cost-effective AP functions.
What Are The Benefits Of Implementing IDP In Accounts Payable?
Intelligent Document Processing uses cutting-edge technology to understand the content of invoices, so that it can automatically extract critical data and populated relevant fields in financial systems – even when invoices vary in their design and layout. This eliminates much of the manual work associated with traditional AP processing, enhancing accuracy and compliance.
More Efficient Use Of Time
Because IDP automates data extraction and processing, AP staff benefit from a lower manual workload, enabling them to invest their time more productively completing other tasks. Invoice handling is faster, so departmental productivity will be higher, resulting in fewer bottlenecks.
By eliminating manual tasks and reducing errors, IDP lowers overall operational costs and improves budget management. Staff can be reassigned to more profitable responsibilities, with less time wasted methodically searching for errors that cause exceptions. As invoices are processed more quickly, your business will be able to negotiate preferential terms with suppliers and avoid late payment fees.
Enhanced Real-time Visibility
With IDP, AP teams gain instant insights into the status of every invoice, which facilitates improved cashflow management and strategic decision-making. Additionally, enhanced visibility allows for problems to be swiftly resolved, ensuring smoother financial operations and promoting more positive relationships with suppliers and partners.
What Is The Future Of AP?
The adoption of Intelligent Document Processing is certain to grow, redefining the future of AP departments. Automation, AI and machine learning, and data analytics in AP operations are all important trends that will drive growth and change. Not only will these technologies save time and resources, but will empower AP teams to deliver strategic insights to inform and shape business decisions.
Contact Us To Find Out More
If you would like to take advantage of evolving technology to improve efficiency, productivity, and cost-savings in your AP department, please book a free, no-obligation demonstration of our automated invoice processing and management platform today.
Image Source: Canva