Rather Than Hiring Another AP Clerk?

ai ocr invoice capture

1. Increased Efficiency

  • AI invoice capture can process invoices faster and more accurately than manual data entry by an AP clerk.
  • Automated invoice processing reduces the time and effort required to manage incoming invoices.
  • Users report that AI optical character recognition reduces manual data entry by 80%.
  • It can speed up repetitive tasks like data entry, matching invoices, and other manual work.
  • The automated system can also store the completed invoices and associated paperwork in a document management system such as This not only saves time to store the invoice but also makes retrieval much faster.
  • A smart AP solution can balance AP staff workloads.

2. Improved Accuracy

  • AI-powered invoice capture minimizes the risk of human error in data entry, leading to fewer mistakes and discrepancies.
  • Accurate invoice data improves the overall efficiency of the AP process.
  • I wanted to make sure AI was more accurate so I manually processed 25 invoices and compared them to AI OCR results. I thought I was very careful but was surprised to find that the manual process was less accurate than the artificial intelligence.
  • Automation reduces duplicate payments by checking for duplicate invoices.

3. Cost Savings

  • Implementing AI invoice capture and accounts payable automation benefits the AP department by being more cost-effective than hiring an additional AP clerk, especially in the long run.
  • In one study, it was determined that the average company spends $8.64 per invoice to process it manually. And when automation your accounts payable process the cost drops to $1 or less when using something Hemingway Solutions AP solution. If you process 2000 invoices per month that is a savings up to $17,280 per month.
  • Reduced labor costs, increased productivity, and fewer errors can lead to significant cost savings for the organization.

4. Scalability

  • AI invoice capture can handle a high volume of invoices without the need to scale up the AP team.
  • As the business grows, the AI system can adapt and process more invoices without the need for additional headcount.
  • If the number of invoices increases significantly one month, it puts a strain on your AP team but automating your accounts payable process allows you to process more invoices. No problem. You can scale quickly without missing a beat.

5. Faster Invoice Processing

  • AI-powered invoice capture can significantly reduce the time it takes to process and approve invoices.
  • Faster invoice processing can lead to improved vendor relationships and timely payments.
  • This also often allows the company to qualify for early payment discounts.

6. Enhanced Visibility and Reporting

  • AI invoice capture systems often provide detailed reporting and analytics on the AP process.
  • This increased visibility can help identify areas for improvement and optimize the overall AP workflow.
  • We often create a dashboard so that AP managers can get a better understanding of the status of all invoices and the productivity of their staff.
  • This better visibility allows managers to focus on the financial processes and gaps within your process, and develop workflow automation to improve the overall process.
  • Better visibility and control allow managers to find a process that needs fixing before it causes major problems for the organization.

7. Improved Compliance and Audit Readiness

  • AI invoice capture systems can ensure that all invoices are properly documented, approved by the correct individuals, and stored in the correct location; making it easier to comply with regulatory requirements and be prepared for audits.
  • And documents can be stored in an ECM or document management system such as Laserfiche, so they are available for the auditor to view.

8. Reduced Workload for the AP Team

  • By automating the invoice capture and data entry process, AI can free up the AP team to focus on more strategic tasks, such as vendor management and process optimization.

9. Increased Flexibility

  • AI invoice capture systems can be easily integrated with existing accounting and ERP systems, providing a flexible and scalable solution.
  • This flexibility allows the organization to adapt to changing business needs and requirements.
  • Losing key staff members is not so painful when you have AP automation technology.

10. Competitive Advantage

  • Implementing AI invoice capture can give your organization a competitive edge by streamlining the AP process and improving overall financial management.
  • This can lead to better vendor relationships, faster invoice processing, and more efficient use of staff members.
  • Quickly finding errors in invoices and fixing them quickly enables invoices to be paid without missing due dates.
  • An automated AP system puts you ahead of the competition when vying for new AP team members when there is a shortage of competent candidates.

11. Improved Cash Flow Management

  • AI invoice capture can provide real-time visibility into the AP process, allowing for better cash flow forecasting and management.
  • This can help organizations optimize their working capital and make more informed financial decisions.

12. Reduced Fraud Risk

  • AI-powered invoice capture systems can detect and flag suspicious activity, such as duplicate invoices or unauthorized payments, helping to mitigate the risk of fraud.
  • This can provide an additional layer of security and control over the AP process.

13. Enhanced Vendor Relationships

  • Faster invoice processing and more accurate payments can lead to improved vendor relationships and better terms for the organization.
  • This can result in cost savings and better overall supplier management.

14. Increased Employee Satisfaction

  • By automating repetitive and time-consuming tasks, AI invoice capture can help reduce the workload and stress on the AP team.
  • This can lead to higher job satisfaction, reduced turnover, and a more engaged and productive workforce.

15. Improved Data Quality

  • AI-powered invoice capture systems can extract and organize invoice data more consistently and accurately than manual data entry.
  • This can lead to better data quality, which can be leveraged for more informed decision-making and strategic planning.

16. Reduced Environmental Impact

  • Implementing AI invoice capture can help reduce the organization’s reliance on paper-based invoices and physical document storage.
  • This can contribute to a more sustainable and environmentally friendly AP process.

17. Easier Onboarding and Training

  • AI invoice capture and accounts payable automation systems often have user-friendly interfaces and intuitive workflows, making it easier to onboard new AP team members and train them on your accounts payable process.
  • This can lead to faster ramp-up times and more efficient knowledge transfer.

18. Continuous Improvement

  • Many AI AP Automation solutions offer ongoing updates and improvements to their algorithms and functionality.
  • This can help the organization stay ahead of the curve and continuously optimize its AP processes.

19. Improved Collaboration and Communication

  • AI invoice capture systems can facilitate better collaboration between the AP Department, other departments, and vendors by providing a centralized platform for invoice management.
  • This can lead to improved communication and more efficient cross-functional workflows.
  • Many AI AP Automation solutions offer ongoing updates and improvements to their algorithms and functionality.
  • This can help the organization stay ahead of the curve and continuously optimize its AP processes.

20. Scalability and Flexibility

  • As the organization grows and its invoice volume increases, AI invoice capture can scale up to handle the increased workload without the need for additional headcount.
  • This flexibility allows the organization to adapt to changing business needs and requirements.
  • Many AI AP Automation solutions offer ongoing updates and improvements to their algorithms and functionality.
  • This can help the organization stay ahead of the curve and continuously optimize its AP processes.

21. Process Invoices 24x7x365

  • AP Staff need to take breaks, vacations, holidays off, and sick days. AI does not.
  • AP Staff waste time chatting with co-workers. AI does not.
  • AP Staff work a 40-hour work week. AI can work 24x7x365 for no extra cost.
  • AP Staff can retire or move to a new company. AI is always working for you.
  • Many AI AP Automation solutions offer ongoing updates and improvements to their algorithms and functionality.
  • This can help the organization stay ahead of the curve and continuously optimize its AP processes.

Conclusion

As you can see there are many benefits of accounts payable automation and AI invoice capture. It greatly reduces the stress and dependence on your accounts payable team. And greatly boosts their job satisfaction by reducing manual tasks and busy work and allows them to focus on high-value tasks that they were trained for

  • Many AI AP Automation solutions offer ongoing updates and improvements to their algorithms and functionality.
  • This can help the organization stay ahead of the curve and continuously optimize its AP processes.