Using AI in Accounts Payable

Accounts payable is one of the most important departments in the accounting of a company. This department handles all the incoming invoices, however, when the number of invoices is high, it is possible for the personnel here to encounter various problems, among which errors which lead to double payments or unprocessed invoices are the most common. For some time now, Artificial Intelligence (AI) can be successfully used in accounting by easing accounts payable departments’ jobs. PAIDAnalytix has such a solution that can be used by medium and large-sized companies in need of automated software which helps them correct and prevent accounts payable errors.


 

Quick Facts
Lower AP processing costs	Thanks to AI being faster and more accurate, companies can lower the costs with the processing of invoices.
Speed-up processing times	AI can also be used to speed up the processing time of the entire accounts payable team.
Process optimization	The tasks of the AP department can be optimized with the help of artificial intelligence.
Reduced fraud risk	Risks of being subject to fraud is reduced and even eliminated when used on a long term.
Lesser human errors	AI can work along employees or can replace them, thus lowering human mistakes.
Immediate access to information	All information is at the fingertip of the account manager.
AI can be used for various tasks	AI can be used for data management purposes, for filing and sorting information, for data entry.
Double payment detection	AI can also be used to detect double payments.
Automatic extraction of data from an invoice	AI can retrieve important information from invoices, such as: - invoice numbers, - merchant data, - item list, - due payment date, etc.
Improved approval workflow	With the help of artificial intelligence, invoices do not need to be checked multiple times, thus improving the approval process.
Possibility to use AI as audit tool	AI can also be a valuable audit tool in accounts payable.
Enhanced reporting process	The financial reporting task can be significantly improved with the help of AI.
Vendor behavior analysis	AI can help the AP department analyze a vendor's behavior based on delivery statistics, payment details, quantity of products delivered.
Integration with other programs	AI can be integrated with various accounting platforms/programs.
Data matching and validation	With the help of AI, invoice information can be matched and validated immediately.

Below, we invite you to read about the advantages of using AI in the accounts payable department and benefit from modern overpayment recovery software. You can also rely on us for AP recovery audit services.

You can read about the advantages of using AI in accounts payable in the infographic below:
 

Accounting is an important department in a company as it ensures access to the needed financial resources which then leads to the correct functioning of a company. The accounts payable department is the one making sure all payments are handled in a timely and correct manner, however, when dealing with large numbers of invoices, this job can be quite stressful.

A large number of invoices and complex processes put the accounts payable department in a difficult situation in terms of securing the accuracy of the payments made. Traditional tools and methods used by the accounts payable department to control these payments have one flaw in common and that is “false positives”. This is also where an accounts payable audit can be of great help.

False positives are very simply put transactions (in this case payments) that seem to be an error however when actually verified they turn out to be a regular and correct transaction. So, by using traditional tools and methods the accounts payable department has to search through hundreds sometimes thousands of transactions to find a few errors. So, the average accounts payable manager is put in front of a choice of either risking consuming his team's time to check all of these transactions or by not checking everything risking allowing faulty transactions to go through.  In conclusion, accounts payable departments have to manage the trade-off between low operational effort and high coverage of the risk. Often, they can’t have both.

This is where our unique artificial intelligence engine comes in. We help our customers reduce false positives and significantly improve their risk coverage.  Automating payment operations with an accounts payable automation solution is the simplest method to simplify an accounts payable audit. Through automation, you can avoid the numerous drawbacks of manual AP and benefit from quicker, less expensive, and easier audits thanks to the consolidated storage of your financial records. 

Maintaining good relationships with suppliers depends on managing bills accurately and promptly. A sound accounts payable system also guarantees that you don't keep obligations on your records for an excessively lengthy time. These processes can be handled with the help of our software through which you can also complete regular accounts payable audits.

In order to help your company, PAIDAnalytix will start with an audit in order to propose tailored recovery audit solutions. This way, the cost of recovery audit will be lower.

Here is also a video on this subject:
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The results of our AI-based software

• a company can lose up to 1% of the amounts of money paid through invoices because of various errors;
• these errors are correlated with complex payment processes, low digitalization, and low automation.
• the average accounts payable department spends several hours per day to control the payments

• on average PAIDAnalytix reduces false positives and by that the operational effort by 50% day 1
• we help our clients increase their risk coverage to over 99%
• our dynamic dashboards offer key insights on the customers business that allow the review and redesign of internal processes
• currently, for our clients, our software automatically detects errors worth up to 1,5 million euros in savings every year.