Duplicate bills cited as major pain point AP
Ask any Accounts Payable (AP) team about the shortcomings of their old ways of handling invoices and you’ll likely hear some variations of the theme that they aren’t always well-suited to meeting modern expectations of pace and timing. volume.
The ineffectiveness of these methods, they will likely say, adds time and inaccuracies to invoice processing, which in turn leads to late payments and friction with suppliers.
For example, in The Digital Shift report, PYMNTS reported that 25% of AP staff responding to a survey said that duplicate invoices or payments create noticeable problems in manual AP operations. Something as simple as getting a second notice for an invoice and trying to determine if it’s already been paid can quickly turn into a long, tedious detour.
Massively powerful solutions
The good news for AP staff is that there are many new technologies that can automate invoice management and speed up error checking processes.
In a recent interview with PYMNTS, Alexander T. Hagerup, co-founder and CEO of Vic.ai, explained that artificial intelligence (AI) solutions can facilitate data mining and are now able to handle changes in workflow, such as a new invoice template that a vendor uses, or identify deviations from typical patterns, as if hourly costs have increased.
“It’s extremely powerful when you’re talking with big companies with millions of invoices and tens of thousands of vendors,” Hagerup said. “The AI is so superior.”
Today, the standard level of AI in AP most often emerges as a technology capable of automatically “reading” key documents such as invoices and identifying and extracting important information such as supplier and prices. . He added that AI has many more opportunities in the business, including AP automation.
Imran Rahman, co-founder and chief technology officer of Nexelus, noted in a recent interview with PYMNTS that when humans handle a high volume of documents, there are plenty of spending opportunities to slip through the cracks.
Nexelus offers a solution called apworks.ai which uses AP and ML and aims to automate the process of ensuring invoice accuracy and proper routing to streamline workflows to payment.
In the Digital Shift report, PYMNTS said 38% of AP professionals want to innovate to reduce payment errors, and 30% said their businesses are struggling to process invoices efficiently.
With such results, it’s no surprise that nearly three-quarters of businesses that process more than 20,000 invoices per month said they plan to adopt innovations in invoice receipt and that 70% of professionals of the PA wanted to innovate the PA to save time.
PYMNTS looked at how technologies can speed up and streamline invoice processing. By leveraging powerful digital offerings, businesses can improve invoice processing and keep AP operations running smoothly.
AP teams can use a variety of technologies to help modernize their invoice processing. Various AI-based media can help companies encode and distribute extracted invoice information through company systems in accordance with company policies, as well as detect and send alerts when invoice instances duplicates are found.
Another effective support is the automation of robotic processing (RPA). This software supports repetitive tasks while using the same programs as the employees. RPA tools require robots to automatically navigate the AP software and perform the same steps as staff members, but at a faster pace. RPA bots can also be designed to follow rules, such as caps on the value of an invoice, to avoid fraud and other costly issues.
Whether the goal is to bring tax – or physical – relief to the treatment of PAs, it’s clear that advanced tools can be a major pain reliever.