Using AI in Accounts Payable

Updated on Thursday 07th May 2020

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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.

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 accounts payable audit services.

You can read about the advantages of using AI in accounts payable in the infographic below:
 
The Advantages of Using AI in Accounts Payable

 

The importance of AI in accounting


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. 

In order to help your company, PAIDAnalytix will start with an accounts payable audit in order to propose tailored solutions.
 

The results of our AI-based software


PAIDAnalytix has been working with medium and large companies mainly and has had the opportunity of analyzing the behavior of these companies. By consolidating our learnings and available studies on the topic we can say:
 
  • 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

You can also rely on us for other tailored services, among which accounts payable audits.

How our clients benefit from our solution:
 
  • 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.

For complete information on our AI-based solution for your accounts payable department, do not hesitate to contact us.