Why companies need touchless invoice processing and accounts payable automation
Accounts payable professionals are discussing the benefits of accounts payable automation with the C-suite for a good reason. Referred to as touchless invoice processing, routine and time-consuming accounts payable processes once performed by the AP team are now automated with no human touch required.
The advent of AP automation has been a game-changer, especially in the current remote work era, offering unparalleled support for remote workers and facilitating real-time financial data tracking. The integration of Artificial Intelligence (AI) and machine learning further enhances these systems, enabling smarter data capture, fraud detection, and decision-making, thereby solidifying the case for investing in accounts payable automation today and in the future.
Benefits of touchless invoice processing
Touchless invoice processing revolutionizes traditional AP tasks by eliminating manual, paper-based processes. This shift not only reduces human error, which is common in detailed transactions, but also supports accurate price/cost analysis and helps the AP department capitalize on cash discounts. With AI-driven automation, tasks such as invoice matching and data validation become more efficient and accurate, allowing the AP team to focus on strategic financial analysis to maximize discounts and improve the bottom line.
Determining competitive vendors and costs
Determining prices and costs to find the most competitive vendors reduces production costs and increases profits. AP professionals have time for more meaningful work, such as negotiating with vendors to get discounts for early payments. As a result, accounts payable automation is changing how the department operates. The AP team enjoys more strategic work that has a notable impact on the overall organization. The AP department is no longer a back-office function as the team works closely with management to find ways to save money. Automation has supported remote workers during the pandemic, proving its return on investment. This working model may continue in the future, supporting everyone from the CEO to parents working part-time in the AP department. Everyone can work and collaborate in real-time, regardless of location or time.
Less manual work and fewer errors
From invoice matching to year-end reports, tedious manual processes caused bottlenecks, errors, and delays in the AP department. Even the most experienced AP team members make mistakes, which can add up to lost revenues and damaged relationships with critical vendors. Accounts payable automation performs essential work touchlessly and accurately to protect the organization’s operations and reputation.
As a result, the AP team and procurement work more closely together to establish and maintain the best working relationships with vendors. From vetting valuable vendors to negotiating discounts for early payments and bulk orders, AP automation leaves key personnel free to perform work that matters to the organization’s overall financial health. During the pandemic, it has been crucial to find viable vendors with competitive pricing. Collaboration and access to financial updates in real-time enables companies to continue doing business during this challenging time.
Forecasting for the future
Adopting accounts payment automation saves time and maximizes the skills of an AP professional. Companies now turn to the AP team for financial information to make significant decisions about production and profitability. Shorter lead times and automated coding support enable more timely and accurate financial and cash flow forecasting. In turn, this has a positive effect on monthly and annual closing.
During uncertain global circumstances, such as the pandemic or natural disasters, business is interrupted for an undetermined time. Forecasting for the future is difficult without accurate numbers at the fingertips of everyone from the C-suite to part-time accounting clerks. The ROI for implementing touchless invoice processing is notable when businesses support remote workers and continue working during disastrous times.
On-point pricing and cost analysis
With accounts payable automation, organization personnel make better decisions in supplier selection, pricing of their products, and cost analysis because of the more detailed and structured cost allocation to item. The visual comparison is easy and ensures the selection of the most competitive vendors.
Consider the supply issues during the pandemic, such as toilet paper during the early days. Accounts payable automation helps in vetting and adding new suppliers quickly and supports companies in building new relationships and keeping track of existing ones. Once again, companies see the advantage of procurement and the AP department working hand-in-hand via accounts payable automation.
Discount opportunities
Companies capture cash discounts from suppliers by paying invoices rapidly and improving revenues for the business. Early payments are easy with touchless processes that are automatic, accurate, and scheduled to benefit the company and save money.
Plus, accounts payable supports a borderless economy internationally with a consistent approach to touchless invoice processing. In a global pandemic, reaching beyond the local resources is crucial to remain afloat.
Businesses have realized a significant ROI for investing in accounts payable automation before the pandemic. Teams were able to work remotely together seamlessly, keeping companies going during the quarantine. With access to pertinent financial data in real-time, crucial decisions are made to save money and continue production. The ROI for AP automation will be rapidly attained, and benefits realized for years to come, especially as remote work becomes a new normal.
The role of AI in touchless invoice processing
Artificial Intelligence (AI) is revolutionizing the accounts payable landscape, making touchless invoice processing not just a possibility but a practical reality for businesses seeking operational efficiency and accuracy. By harnessing the power of AI, companies can automate complex tasks that traditionally required manual intervention, such as invoice data extraction, validation, and matching.
AI-driven systems are designed to learn and improve over time, reducing the likelihood of errors and increasing processing speed. This continuous improvement loop means that the more invoices the system processes, the more refined its accuracy and efficiency become.
Beyond automating routine tasks, AI enables predictive analytics, providing AP teams with valuable insights into spending patterns, potential cash flow issues, and opportunities for early payment discounts. This strategic advantage allows businesses to make informed decisions that positively impact their financial health.
With sophisticated algorithms, AI enhances the security of the AP process by identifying unusual patterns that may indicate fraudulent activity. This proactive approach to fraud detection ensures that businesses can safeguard their finances against potential threats.
With sophisticated algorithms, AI enhances the security of the AP process by identifying unusual patterns that may indicate fraudulent activity. This proactive approach to fraud detection ensures that businesses can safeguard their finances against potential threats.
Elevate your AP process with Medius solutions
Elevate your accounts payable operations with Medius's advanced touchless invoice processing and AI-driven automation. Our comprehensive solutions streamline AP tasks, enhance accuracy, and provide critical financial insights, freeing your team to focus on strategic initiatives.
Discover the Medius difference and take the first step towards a more efficient and secure AP process. Explore our solutions and contact us for a demo today.
