Late payments affect vendor relationships. Invoice processing delays is one of the key contributors to the late payment challenge. According to IFOL, more than 68% of companies still manually enter invoice data into their ERP or accounting software. Businesses that handle a large volume of invoices often experience frequent delays due to manual invoice capturing.
Automating the invoice capture process reduces the burden on employees, speeds the payment process and improves your relationship with suppliers with autonomy and scalability. AI agents automatically extract the data you need from invoices and reduce the need for manual reviews.
In this blog, we will focus on how AI agents can transform invoice capture with the use of automation and improve overall accuracy in your system.
What is automated Invoice capture?
Automated invoice capture is the process of using AI agent tools to extract, validate and process invoice data without manual data entry. AI agents autonomously automate your invoice capture with continuous learning and adaptability.
AI agents capture invoices from several channels like email, EDI, scan, share drives or APIs. They also support several formats (like PDF, XML, JPEG, PNG, TIFF and others), both structured and unstructured.
They use ML and IPD to identify and extract key fields, perform automatic line detection and categorisation of data.
Barriers in Manual Invoice Capturing
Lack of visibility and control
Manual data entry into the system becomes difficult as your volume of invoices increases. Tracking every single invoice and tracking outstanding amounts can be time-consuming.
Increase errors
In manual invoice capturing, human error is a major bottleneck while matching POs, receipts and invoices. Finding and fixing errors might lead to further duplicated invoices or a need for resubmissions.
Delayed Payments
Errors and insufficiencies in manual invoice capturing cause payment to be overdue. The longer the time for invoice capturing, the further it delays payment approvals for the invoice.
Poor supplier management
Untimely payments can impact your supplier relations. It leaves your organisation with the burden of sourcing new suppliers and disrupting the current flow.
Wasted resources and inefficiencies
In a legacy invoice capturing system, any error can waste time and cost to track down the root cause.
How can AI agents help overcome the barriers?
Fewer errors
AI agents can reduce errors with intelligent data capture, automated 3-way matching and using specialised agents for compliance and validation, making invoice processing faster and more reliable.
Handle variations
New vendors or a new system can bring a unique invoice format without any pre-configuration. AI agents can make your invoice capturing process intelligent so that your system can adapt to new layouts and predict where to find specific data fields without templates.
Scalable
Bringing scalability to your invoice capturing system is one of the core functions of AI agents. Even with the increasing volume of invoices, AI-powered systems can easily handle data entries with precision and speed.
Reduce data entry errors.
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