Invoice Processing and Accounts Payable Functions

Accounts Payable Automation is a sector that because of the relatively standard formats of documents received it benefits enormously through the application of smart Optical Character Recognition (OCR).

No matter the business size, you will be aware of the inefficiency and pains in processing and paying bills for goods and services received. The time and cost to receive, arrange, enter and process accounts payable data and then record and archive the resulting paper trail is an ongoing and time-consuming burden.

Technologies now exist including computer vision to intelligently scan and electronically read data from the original documents, artificial intelligence helps to understand and query the information collected such as managing multiple line items, tax discrepancies and calculation errors, pattern recognition remembers existing supplier layouts and rules.

Workflow Automation then provides the final element, for example, an invoice received from an approved supplier (if under an authorised amount), can be automatically received, scanned and processed, approved for payment, integrated into the accounting software (such as Xero) and electronically archived with complete automation.

The combination of Inbound OCR options with the other integrated paperless solutions such as forms, jobs and document management provides a world-class end to end business automation solution that is transforming business operations globally.

Market research and analysis group, Gartner confirmed that the typical cost of processing an invoice in the UK averages between £4 and £25, and in some cases rose as high as £50 per individual invoice.

The report also shows that invoice processing using procedures without automation tools can be up to 20 times higher than they could be.

Slow and erroneous payment and collection processes effects business of all sizes, manual processes and poor access to related information and documents adds unnecessary complexities, delays and costs.

Moving to a paperless environment for Accounts Payable processes can see a business realise substantial cost savings, with ROIs typically within a few months. Additional benefits include improved cash management, increased visibility and simpler approval and matching processes.

When Accounts Payable (AP) and Accounts Receivable (AR) functions are automated, this translates to:

• improved efficiency in invoice management (i.e. document imaging, data extraction, electronic approval workflows),
• reduction in external/internal inquiries (i.e. PO matching, electronic workflows), and
• improved reconciliation and ledger management (i.e. automated PO matching, cash flow forecasting).

What is it costing your business?

Our experts help business understand the current costs and process challenges, by understanding more about your business we can better guide you to the best providers to support your business transformation and provider a starting baseline to support your review.

Key areas for review:

1. The digitisation of physical documents (preparation and scanning processes
2. Processes for e-delivered invoices
3. Steps in place for transferring information from digital invoices to AP/AR system (Data extraction)
4. Verification to allow release for payment
5. Invoice creation and data output