Anyone who works in the finance department of their business knows the slog of invoice processing is a relentless task. Between countless data points, sensitive information, and important financial priorities, these invoices demand a unique level of scrutiny on top of the volume with which companies must deal with them.

The world of invoicing would otherwise be on a precipice of ineffectiveness if it weren’t for the influx of AI and automation technology. From powerful tools that help extract information faster to solutions that expedite the accurate payment of bills and invoices, this technology has fundamentally transformed the way that businesses approach invoice processing.

Let’s take a look at the growing demand on the invoicing department, the rise of AI to counter it, and the tactical solutions that have revolutionized the business approach to processing financial information.

Invoice Processing Demands New Solutions

Managers of an organization’s financial department are all too familiar with the faulty approaches to invoice processing that lack true intelligence. Without a system to properly centralize, organize, and utilize data, accounting teams are often left scrambling to keep up with the inundation of data.

• Manual errors causing penalties — A strapped staff will rush to process invoices in order to avoid late fees and cause a backlog in payments. But that drastic effort to generate as much as possible — particularly through manual processing — is a clear recipe for error. Without AI to assist in the process, manual work will drastically increase penalties for incorrect invoices due to those costly errors. Unfortunately, this is not because of the staff themselves but because they’re overworked by accounting duties without the right tools to support them.

• Backlogs in supply — Between irregularity in data and a lack of consistency in process, manual invoice processing slows down the whole approach to how finance departments operate. This can create huge backlogs in invoices that snowball into major backlogs for the business at large — resulting in the slower supply and output of products or services from the business itself. 
• Missing time-sensitive delays — Errors and backlogs have enormous downstream consequences — most notably a delay in the input of necessary payments. When invoice processing relies on manual systems, time-sensitive payments become increasingly difficult to hit, creating friction with customers and vendors to the detriment of the business’s reputation.
• Lack of financial data visibility — At a higher-level view, systems that are purely reliant on manual work and ensuring consistent output forego the ability to collect data and notice trends, recurring issues, or ways to improve processes. Without centralized financial data visibility, these organizations will remain stuck in their old ways of handling information without making an effort to adjust for a long-term, sustainable approach to processing.

Optimization in the World of Invoice Processing

With next-gen invoice processing solutions at their disposal, businesses can overcome the tedious manual data entry and cumbersome workflows demanded by analog processes of old. Thanks to the innovative technology of AI and automation like intelligent document processing for invoices (IDP), your accounting team can leverage intelligent data capture to streamline the entire invoice processing lifecycle from receipt to payment. 

By automating repetitive tasks and leveraging advanced algorithms, businesses transform simplistic and repetitive manual labor into comprehensive workflow automation — thereby ensuring high-accuracy data capture and powerful integrated workflows.

IDP and Automation Transforms Invoice Processing

Extrapolating, collating, and organizing data for the finance department is more than just an improvement to any one employee’s ease of use. With a more streamlined system, organizations benefit up and down — with reduced budgeting challenges and better regulation of costs that protects the bottom line. Here are the tangible ways that IDP, AI, and automation in general make a revolutionary difference:

1. Minimize errors in data: Manual data entry is prone to errors, which can have far-reaching consequences for businesses. From transcription errors to misplaced digits, even minor mistakes can disrupt operations and compromise data integrity. To combat that, businesses can leverage IDP in their invoice processing to reduce those issues by diminishing reliance on manual input and ensuring high-quality data capture. By harnessing the power of automation, organizations achieve greater accuracy and reliability in their invoicing processes.

1. Reduce invoicing costs: When organizations forego costly, time-consuming manual approaches, everyone benefits — particularly executives looking for a friendlier bottom line. With intelligent data capture, accounting teams can eliminate the need for extensive manual intervention, significantly reducing operational costs associated with invoice processing and avoiding the issues of late payments, penalties, and fees.

1. Improve processing speed: When the modern economy demands timely responses and consideration, companies need to be equipped to handle the rapid pace of business. Automated invoice processing allows businesses to identify, extract, and deliver actionable data at record speeds — streamlining workflows and ensuring invoices are processed promptly. Through more efficiently-designed processes, companies enable faster decision-making and enhanced productivity in their finance departments.

1. Prevent internal fraud: Avoid the fraudulent activities that can wreak havoc on your business and lead to both financial losses and reputational damage. Intelligent workflows that identify the correct data, utilize it correctly, and determine precise payment and timing lead to the elimination of errors and a more secure business. Additionally, these intelligent solutions help to identify suspicious activities, flagging duplicate invoices using built-in security features so businesses can rest assured that their financial data is protected against fraudulent activities.

Invoice Processing Optimization with Plextera

Streamlined invoice processing and automation are reshaping the way businesses manage their finances and plan their budgets. With Plextera’s innovative solutions, organizations can unlock new levels of efficiency, accuracy, and security in their invoicing processes.

Time to upgrade from manual data entry and join the future of automation and AI in invoice processing. Reach out to Plextera today to try a demo of our IDP solutions and see firsthand how you can maximize the potential of your finance department.