One of the most important processes in any organization is the accounts payable process. The accounts payable department is responsible for maintaining the cash flow of the organization, preventing any risks and fraud, and keeping vendor relationships healthy.
While it is largely an area of extensive manual work, advancement in Artificial intelligence (AI) and Robotic Process Automation (RPA) has made it possible for businesses to automate and streamline the process. This is crucial for time-extensive procedures that can hamper the efficiency of the entire organization.
A report by Kofax states that automation in this process can reduce costs by 81% and improve the overall efficiency by 73%. This article discusses the impact of automation on the Accounts Payable process.
Understanding the Accounts Payable Process
- The team designated to procure a product or service will create a purchase order, which is a contract between the business and the third-party vendor
- The order details out the basic information about the purchase.
- The team then examines the shipment to compare it to the original purchase order so a receipt report can be generated.
- The vendor shares the invoice that shows what they have delivered and at what price. The invoice is then verified/approved by 2 or 3 signature authorities in the organization.
The overall time and cost involved in these steps are why the process requires automation. The manual entries and approval of invoices take up a lot of time, and the variety of formats that invoices come in often causes a lot of issues for the Accounts Payable team as well. In such situations, AI and RPA can largely reduce these time delays and speed up the process significantly.
The Effect of AI and RPA
On average, it takes anywhere from 4 to 16 days to complete an accounts payable cycle, while manually invoicing and approving payments costs about $23. RPA and AI can help in streamlining these workflows as they can replicate human tasks within a digital environment, which in turn, reduce the cycle time significantly.
In fact, in terms of money, processing one invoice through the use of RPA and intelligent systems only costs $4. In addition to bringing considerable cost and time savings, there are a plethora of other very significant benefits that automation and artificial intelligence can bring to the entire accounts payable department.
Here are some of the major benefits:
- Scanning and converting invoices from different formats to capture the data. This includes physical copies, scan copies, PDFs, emails, and faxes.
- Classify and sort invoices automatically
- Check for duplicate invoices and send alerts to relevant departments
- Validate invoice data
- Route invoices for fast approvals
- Automated actions and reminders for payments
- Reporting and analytics
- Reduced human error
- Improved process control for better compliance
- Enhanced process transparency
- Improved relations with vendors and increased customer satisfaction
- Accuracy of data
Your Accounts Payable process needs to be robust and secure in all aspects, which is why it needs the boost of AI and RPA in the system. It can transform the way you saw your AP process by making it a quick, agile, and efficient process that is less laborious and costs you a fraction.
You can get the power of automation through the leading RPA and AI services provider, SVAM International. We have dedicated teams in the US, India, and Mexico alongside a global pool of talent to address all your needs at all times of the day. Book your consultation now.
