By Trevor Poapst, Director of Business Growth and Marketing, Contexture
Is it really possible to automate the accounts payable process? With careful planning, a flexible AI-powered AP automation solution, and some human validation, the answer is yes.
Artificial intelligence has ushered in a new era of automation and efficiency in various industries, and accounting and finance is no exception.
Here are ways AI can streamline the traditional accounts payable process:
- Automated data capture:
AI-powered optical character recognition (OCR) software scans and extracts data from invoices—even complex invoices with hundreds of line items—and eliminates manual data entry. This reduces errors and accelerates processing. - Invoice validation, matching, and coding:
AI algorithms automatically match invoices with purchase orders and receipts (3-way matching) and flag any discrepancies for human review. This streamlines the validation process. As more complex invoices are fed into the system, the AP automation solution becomes smarter. AI can also be used to match PO numbers from email subject lines and email bodies with invoices. - Invoice approval workflows:
AI-powered workflow engines route invoices for approval based on predefined rules. The system learns from historical approval patterns to optimize routing. - Intelligent data analytics:
AI can analyze historical AP data to identify patterns and trends. It can help predict cash flow, optimize payment timing, and negotiate better terms with vendors. - Vendor management:
AI can assess vendor performance, helping organizations make more informed decisions about payment terms and vendor relationships. - Fraud detection:
AI algorithms can detect anomalies and potential fraud in invoices, helping prevent financial losses. Invoices can be matched against approved supplier lists and duplicate invoices can be identified automatically.
AP automation can be applied to all major industries
Thousands of companies globally, across all major industries, now use AP automation software to reduce their invoice processing costs from approximately $10-12 per invoice (or as much as $30 for complex invoices) down to $1–5 per invoice, depending on the technology platform.
For example, following are three Alberta-based companies that have streamlined their accounts payable process with Contexture AP Automation:
- Chandos Construction, a national construction company, uses AP automation to automate their invoice entry process and integrate invoice data with their ERP.
- Pangman Development, a real estate development company, transformed their accounts payable import, review, and approval processes.
- Freson Bros, a regional grocer with over 15 stores across Alberta, has automated the processing of 60,000 paper-based invoices per year and streamlined their AP workflow.
AP automation delivers an immediate opportunity for companies to scale for growth while reducing costs, remain competitive, and leverage AI to solve a business process that has historically been very labor-intensive and time-consuming.
CPA Alberta would like to thank Contexture for its generous support of EVOLVE 2023 , taking place virtually on November 21.
Join us on November 21 for EVOLVE 2023, a full day, live virtual conference featuring sessions on cybersecurity, ethics, sustainability, tech innovation, AI, and so much more before diving into post-conference workshops from November 22 to December to deepen your knowledge with industry-leading experts. Don’t miss this opportunity to obtain CPD hours while future-proofing your skills.
November 21
Live virtual conference (Up to 7 CPD hours)
November 21 to December
Conference and workshops (Up to 7 ethics CPD hours)
November 22 to December
Live virtual and in-person workshops (Up to 30 CPD hours)
