Automation can be of great advantage in many fields of today’s business world — not only in Enterprise-Resource-Planning (ERP) Systems. Automation has become a game-changer for AP Teams, offering many possibilities to streamline operations, ensure optimised cash flow and enhance efficiency. With the integration of advanced automation tools and Artificial Intelligence (AI) into a business’ AP systems, you can transform old-fashioned, manual workflows and unlock new levels of accuracy, speed, and control. Modern AP automation software can build a bridge with AI’s sophisticated learning algorithms and real-time analytics to further elevate the capabilities of automation by enabling intelligent decision-making and continuous improvement. This synergy between accounts payable automation and AI addresses long-standing inefficiencies and paves the way for scaleable, innovative solutions.

Invoice and data capture: Automated AP workflows can streamline invoice management by using Optical Character Recognition (OCR) and other data extraction technologies. Even paper invoices can be automatically transferred into a company’s database. This eliminates the need for manual data entry, which is time-consuming and prone to errors. Key invoice data such as invoice numbers, dates, and amounts are automatically extracted, thereby speeding up the processing time and reducing administrative workload.

Identifying and correcting data issues: Advanced automation tools in AP processes can identify missing or incorrect invoice data. Once detected, the system can automatically fill in or correct erroneous information using predefined rules or data from integrated sources. This reduces processing costs and ensures the data remains accurate and complete while reducing the need for manual verification or correction.

Approval workflows: Designing customisable approval workflows that match a company’s specific policies can be an integral part of modern automation software. Routing invoices automatically through the necessary approval channels based on criteria such as amount, department, or type of expense is an important step in invoice management. Approval processes are streamlined, bottlenecks reduced, and payment processing flows much easier.

Making use of early payment discounts: Automation tools can identify invoices that qualify for early payment discounts and prioritise their processing. By flagging these invoices and ensuring they are paid on time, companies can take advantage of cost-saving opportunities that would otherwise be missed due to manual processing delays.

Avoiding late payments and duplicate payments: On the other hand, automated electronic invoicing can send reminders for upcoming payments and use duplicate detection algorithms to prevent the payment of the same invoice more than once. These features help companies avoid late payment fees and duplicate payments, which can affect vendor relationships and lead to unnecessary financial losses.

Automated fraud detection: Fraud detection algorithms built into automation tools can analyse transaction patterns and flag anomalies that may indicate fraudulent activity. By continuously monitoring transactions and metrics for suspicious behaviour, automated AP automation systems add an extra layer of security.

Reducing human errors: Automated processes significantly reduce the likelihood of human errors, which are common in manual tasks. Automation handles repetitive tasks for AP teams, like invoice coding or preparing invoices for approval workflows, with high accuracy, minimising mistakes that can lead to financial discrepancies and compliance issues.

Optimised compliance: Speaking of compliance brings up the point that automation tools adhere to regulatory requirements by integrating compliance checks directly into the system. This reduces the risk of non-compliance and ensures that all transactions are processed according to legal standards. This is particularly important for audits and financial reporting.

Prescriptive AI for decision proposals: With prescriptive AI, automation software goes beyond descriptive and predictive analytics by not only forecasting future outcomes but also recommending actions to achieve desired results. In AP automation, prescriptive AI uses historical data and current trends to analyse and propose the best course of action for processing invoices and managing payments.

Real-time data insights: Real-time data analytics is highly valuable in providing up-to-date insights into financial operations. This enables finance teams to monitor performance, track key metrics, and suggest data-driven decisions quickly. Access to real-time information helps identify trends, address issues promptly, and improve overall financial management.