It’s 2022 – yet businesses are still relying on manual invoice processing. A seemingly endless cycle of data entry, matching invoice lines to purchase orders and scanning enough documents to cause carpal tunnel. And as if the subsequent headaches weren’t enough, the time, money and risk could have your business’ success hanging in the balance.
With accounts payable invoice automation, you can process any invoice format from any channel your supplier throws at you, and you don’t leave anything to chance.
The Problem: Time, Money, Labor and Fraud
Theoretically, processing purchase order invoices should be painless. In a perfect world, you receive your invoice and match it against the original PO once it arrives. However, on average, straight-through or touchless processing happens only about 21% of the time.
For all the other invoices, your AP team will need to manage exceptions, manually enter data, and code the invoices for accounting – which takes hours (or up to 12 days on average). A lack of technology makes each step of the process more error prone. Besides chasing the right people down, if there is a mistake in data entry or a hold up with verification, then the already lengthy process can go from days to weeks. This means late payments, higher processing costs, missed early payment discounts and diverting your AP team’s talent on tasks that detract from value-add initiatives.
Non-PO invoices in particular amplify these challenges exponentially and come with their own unique set of problems. Without the benefit of a PO, non-PO invoices require coding and approvals. They typically amount to over 50% of invoices, and account for most of the manual processing.
On top of that, they open your organization up to fraud. Without a PO to match against, the chances of being overcharged, paying fake invoices or vendors, and other types of fraudulent charges increase. To verify purchases and accounting, accounts payable must reach out to people who can verify that the information is correct – finding the right person is often a big challenge that can delay processing and expedite headaches.
The number of invoices that need to be verified and processed so that “nothing happens on my watch” takes many members of a team to get the job done without technology. Technology can be the difference between processing 1,500 invoices per full-time employee (FTE) versus 15,000 invoices per FTE, per year, fast and accurately. Inundated AP teams under volumes of invoices is only exacerbated amid a severe labor shortage – and turnover leaves more to chance.
Does everything need to be on a PO?
More spend under PO is a best practice for control, approval, terms, visibility and expectations on performance, however, we recognize it’s a challenge for many spend categories and suppliers. Those companies trying to get more spend under PO for the benefits of speed, automation, and visibility, can now relax. Artificial Intelligence eliminates hours of manual work, unearths potential fraud, and delivers the visibility and control for the 75% of invoices on average that companies process manually today – largely non-PO invoice coding and approval, PO matching, and exception processing.
The Solution: Artificial Intelligence and Machine Learning
We are at a pivotal time where artificial intelligence and machine learning are making huge strides to address all the manual work that goes into invoice processing. Furthermore, AI and ML deliver data with speed and accuracy that can be used not only to close the books early, but also deliver better spend analysis and insights. APIA scans invoices, reads the invoice data from even the most challenging layouts, structures the data for processing and analysis, codes the invoice for accurate accounting, ensures the right person reviews and approves, and learns from historical data to catch and flag potential fraud.
Invoice processing can be done in eight seconds rather than in days, weeks or months. Today’s AI and ML technologies are achieving incredible first-pass accuracy rates and learning in fewer passes to achieve 100% confidence. Touchless processing and accuracy mean suppliers get paid on time and accurately. AI can bring the average cost per invoice down from $10-14 to less than $3 – saving your business hundreds of thousands per year. We told you your costs were in your control, didn’t we?
Kiss Non-PO Intimidation Goodbye
Almost all aspects of our life are digitized, and AP processes shouldn’t be any different. Integrating artificial intelligence and machine learning into invoice processing reduces the risk of fraud, eliminates work, saves time and money, and allows your team to create a real impact.
No matter the type of invoice you need processed, Vroozi Intelligence can handle it (reminder: in eight seconds). That’s why we like to say, ‘no PO? No problem.’
If you want to learn how Vroozi Intelligence can make a positive change for your business, make an appointment for a demo with us today.