AP automation solutions are aimed at automating the end-to-end accounts payable process. Such solutions provide capabilities, such as automated workflow, vendor management, and electronic invoicing. With AP automation services, enterprises can process invoices faster and more accurately, reduce the risk of errors and fraud, and improve cash flow management.
Optical character recognition (OCR) is a legacy software tool used for digitization of paper-based information assets. OCR tools transform scanned documents or photos into editable and searchable text. Using OCR tools, organizations can quickly digitize and save massive amounts of documents, such invoices and receipts, so that they can later be accessed and searched with ease. To automate data entry and streamline processes, OCR tools can be integrated with other business applications, such as accounting software.
While OCR tools and AP automation solutions both have the potential to improve process efficiency and accuracy, adoption of AI-led AP automation solutions offers a far better proposition than using OCR tools. There are several benefits to using AI-led AP automation over OCR and intelligent document processing (IDP) solutions. Some of the key benefits include:
Improved accuracy and reduced errors:
AI-led AP automation uses advanced machine learning (ML) algorithms to accurately extract data from invoices and other documents. This results in significantly lesser number of errors compared to OCR tools, which can sometimes struggle to accurately interpret the text on invoices and other documents. Moreover, AI-led AP automation delivers a greater degree of straight-through processing (STP) in comparison to OCR tools; need for human intervention is significantly reduced as ML models learn from exception cases.
AI-led AP automation can process invoices and other documents much faster than OCR tools. This can help to reduce the amount of time that your AP team spends on manual data entry and other tedious tasks, freeing them up to focus on more value-added and higher priority activities.
Process-centric approach to automation:
While IDP solutions offer AI/ML capabilities, these solutions are not customized for specific processes. Enterprises need to incur significant costs on training ML models and integrating various software components to deliver AP automation. The time to value is significantly greater in the case of IDP solutions when used for AP automation. AI-led AP automation solutions deliver faster time to value at a lower cost of ownership.
Better integration with other systems/applications:
AI-led AP automation systems are designed to integrate seamlessly with other systems, such as your accounting software and ERP applications. This can help in streamlining the overall AP process.
Enhanced data security:
AI-led AP automation solutions often include robust security features to protect an organization’s sensitive data. This helps in reducing the risk of data breaches and other security incidents.
So before you set the stage for a successful AP Automation, The Institute of Finance and Management (IOFM) suggests financial leaders to understand some nuances before you or your organization is in the process of proposing or implementing an automated solution.
Zycus AP automation (APIA) solution offers holistic AP transformation with AI-led automation. Enterprises can achieve a greater degree of invoice automation and drive AP transformation via cost-efficient invoice processing, better supplier communications, dynamic discounting, fraud detection and global compliance.
To take care of vital pain points of your AP team, read: How organizations can use AP Automation as a strategic business driver.
AP Automation also offers a template-free approach to invoice data extraction and processing and delivers a greater degree of STP with high accuracy at a lower cost of ownership. Zycus’ AP automation suite provides users with dedicated features and capabilities for invoice content compliance, e-invoice compliance and tax compliance. Anomaly and fraud detection capabilities include identification of fraud cases (e.g., duplicate invoice and phantom vendor) and safeguards against phishing and spoofing. Better supplier communication is achieved with automated email review and reply via AP Smart Desk.
To understand the critical points that AP automation can work on to cut costs in your organization, read: Three ways AP automation can help organizations reduce costs.
Explore and discover how to build an AI-led AP Automation machinery in your organization with a free demo of Zycus’ AP Automation Suite.