How intelligent document processing can reshape your accounts receivable process

No matter a company’s size, industry, or main business, it can’t function without effective accounts receivable process management.

AR professionals, whether working solo or as part of a department, are under incredible pressure to ensure timely invoice payment and keep cash in the coffers for smooth operations. A report by Dun & Bradstreet and the Credit Research Foundation found that in some industries, as much as 10% of outstanding invoices to customers are more than 90 days past due. Inevitably, some buyers are unable to pay within standard time frames, and there is nothing accounts receivable can do about that. But AR teams can prevent payment delays for other customers by following efficient and organized invoice submission processes.

Aside from the economic challenges facing many organizations, it can be easy to fall behind on accounts receivable processes, cause delays with human error, or struggle to keep up during a growth phase. Labor constraints make it difficult to ensure AR professionals always have the support they need. Invoice processing platforms, ERP systems, and software designed to streamline accounts receivable processes make tasks easier, but many still have gaps in their capabilities. It’s artificial intelligence platforms that hold the key to better workflows.

Intelligent document processing for quicker ROI

Intelligent document processing (IDP) platforms are a relatively new offering in the automation space that leverage AI for document management and data entry. Traditionally, accounts receivable processes are incredibly manual, centered around converting information into digital data for internal and customer computer systems. Intelligent document processing can eliminate most of the labor that goes into this, resulting in:

• Faster invoice submission
• Less human error
• Reduced processing costs
• More organized followup
• Less employee burnout

How IDP can improve your accounts receivable processes

Incorporating intelligent document processing in accounts receivable can transform the entire process in three ways:

1. Integrate with existing solutions

Powered by AI, intelligent document processing platforms are incredibly flexible and able to integrate seamlessly with ERP systems, invoice processing platforms, and other AR software companies already use. Many of them don’t have any IDP capabilities, so adding an AI component, even through a separate platform, can dramatically improve accuracy and efficiency. The most advanced intelligent document processing platforms can even create seamless workflows between point solutions from other departments for all-around enterprise automation.

2. Eliminate data entry

Most AR point solutions still require manual invoice creation, data entry, and other time consuming processes. IDP on the other hand automatically pulls information from purchase orders and inputs relevant data into invoices or connected ERP systems for faster submission and less chance of human error. Similarly, when a payment is received, IDP can extract data from banking or bookkeeping systems and update databases or business applications without any manual effort.

3. Streamline data transmission

Even with an enterprise ERP system in place, accounts payable and accounts receivable processes vary from organization to organization, because of differing company policies. This can further complicate work for the AR team if they have to take the time to format invoices according to their customer requirements or submit invoices through special portals. It also complicates the followup process for collecting delinquent payments.

In the same way IDP integrates seamlessly with any users’ points solutions, it can also connect with customers’ data systems, removing the manual work that goes into invoice submission. Advanced platforms can even integrate with legacy systems that are challenging to connect with. This connectivity dramatically speeds up accounts receivable processes and helps organizations collect payment faster.
AI-enabled IDP is the missing key many organizations need to automate more of their accounting, reduce payment processing costs, and speed up cycle times. Automation Hero does all this with the most advanced deep-learning AI to improve accuracy and efficiency over time. It also scales across entire organizations to automate every department or business process. Schedule a free demo of the platform to learn more about the Automation Hero difference.