Optimizing Accounts Payable Automation Via Software
How To Read Invoices
Accounts payable automation (AP automation) allows business to streamline their accounts payable process and increase operational performance. By embracing digital solutions to automate traditional manual processes, finance executives can generate measurable financial and non-financial returns, liberating resources towards value-added activities and creating efficiencies. While there are many ways to improve performance with the use of software, this article will focus on the improvements to be made in regards to invoice reading.
Accounts payable automation can facilitate the acceleration of invoice data entry, utilizing cognitive AI-based software to quickly extract and understand the content contained within invoices. By automatically reading various data points from the invoice, manual input may be eliminated. Not only does this limit data entry errors introduced by manual processing, but it isignificantly reduces the time and amount of labor required for invoice processing.
Additionally, automatic reading also enables two-way communication between trading partners. By seamlessly extracting supplier and other key data from electronically received invoices and feeding into the supplier relationship management platform, communication is expedited; allowing timely data to be passed between both parties in collaboration.
Many invoice-processing Softwaresystems utilize optical character recognition (OCR) technology to convert PDF’s into editable text data. However, due to the variety in invoice formats, more sophisticated automatic reading system is often required. modern invoice-processing pipeline can be developed using advanced artificial intelligence (AI) technologies. Such technologies include natural language processing (NLP) and computer vision to unlock the potential of invoices.
For instance, NLP can parse out invoice-specific data points, such as purchase order numbers, supplier names and product descriptions, improving accuracy and reducing data entry times. Furthermore, computer vision can be used to understand the visual structure of the invoice, automating the location of fields, such as the date and subtotals.
The combined use of NLP and computer vision technology provides more reliable invoice reading experience, with the automation being able to accurately identify and read data from even the most complex of invoices, ensuring quicker, more efficient accounts payable performance.
Significant operational performance may be unlocked through the deployment of invoice-reading software. AI-based software enables business to accurately extract, recognize and properly store data from invoices, eliminating manual labor and data entry mistakes; allowing finance departments to increase performance, efficiency and profitability.
