How the use of AI can help better the Accounts Payable process 

13.03.22 06:48 AM Comment(s) By Assetsoft

Business experts and industry veterans have time and again insisted on the importance of automating your accounting process. The benefits of automating your Accounts Payable can have endless added benefits to your business growth. Freeing your business of manual accounting makes it error-free and faster and helps keep up with the latest market trends. 

 

The use of Artificial Intelligence (AI) and Machine learning can make this automation process more holistic and leave a real impact. Are you confused as to why you need these? This blog can rightly help you set your priorities right and give you better insights into the true benefits of AI in accounting.  

Machine learning and AI - All that you need to know 

Normally most of us end up using AI and Machine Learning as synonymous phrases. But they are vastly different in the way they work. AI helps your system develop human-like thinking and acting capabilities. Whereas Machine Learning helps your system learn from historical data being fed to it without further programming. How do these play any role in the automation of your AP? Here’s how. 

 

Automation is all about automatically doing the tedious and repetitive work that goes on your system. Which was once done manually can very well be completed with software integration. AI will help mimic the manual tasks, and Machine Learning helps it by finding patterns and predicting future developments from data already present in the system. 


AI can adapt and find solutions to N number of tasks that a human can do, but Machine Learning has a limited capacity of work because it draws insights from past data. This is exactly why you need both of them in your AP automation plans to leverage the best of both. 

Top Benefits of Artificial Intelligence in Accounts Payable 

Take a look at the dynamic and diverse benefits of using AI in your AP system to make back office work hassle-free and devoid of errors. Read on to know more. 


  • Automation plans 

 

There are multiple daily tasks that your Accounts Payable team handles on a daily basis. These tasks are repetitive yet need high levels of accuracy. Things like invoice filing and retrieval, data entry, invoice routing, and much more can become automated with the use of AI. You can also add Machine Learning to this, and you will get data identification and extraction work done in minutes. It also helps you understand and categorize the data based on the findings and conclusions, making your life easier.  

 

This will help completely digitalize your accounting system and eventually make future data search much easier. This is exactly why more than 58% of expert accountants want to start investing in AI-based automation services to upgrade their businesses.  


  • In-depth data analysis 

 

When your Accounts Payable system uses AI to process data, you can also use the findings for better accounting budgeting and forecasting. It will tally future revenue and upcoming expenses to help you understand your cash flow and expenditure abilities. AI will give you balance sheet forecasts to help better your future financial plans. Survey says that more than 51% of accountants believe that processing and analyzing data findings of AI automated systems will become the next big thing in coming years. Find that intriguing? That is exactly why you need to start investing in AI-based accounting automation plans. 


  • Follow up on all compliances and regulations  

 

Analyzing big bulks of data to keep up with all compliances and regulations can be a back-breaking task. Even the smallest of human errors can become major setbacks during audits. The use of AI can simply process all these complex data to find all discrepancies. From flagging problem areas and high-risk documents, AI can be trained to do all of it. You will be further saved from all future legal and audit issues by keeping all documents in order.  


  • Reduced errors and costs 

 

More than 80% of business executives believe that the use of AI in accounting gives them get better efficiency. From the loss of invoices to double payments, humans can end up making many small errors that can cost your business millions of dollars. These errors can be easily avoided with the use of an AI-based AP system. From cutting down costs on physical invoices to avoiding extra payments, AI can benefit you in multiple avenues and cut down on unnecessary expenditure.  

 

  • Fraud detection  

 

Frauds can be of endless types when it comes to Accounts Payable. Inhouse frauds like check tampering, scams in fake bills, overstated expenses, multiple claims on the same statements, and many more. A proper AI-based AP system will flag all such discrepancies in payments the moment it notices. These might very well be ignored by human eyes as gross mistakes. AI will check for patterns in all your payments systems, alert you every time there are high-risk transactions and abnormal payment schemes. 

 

More than 63% of major financial institutions across the world believe that AI can genuinely help in reducing in-house financial frauds. They are of the belief that AI-based accounting systems can predict frauds even before they take place, and that makes intervention much easier. Machine Learning simultaneously compares these data findings with previous fraudulent transactions to detect patterns and helps identify the source. Saving you from major financial frauds even before they occur. 

How Assetsoft can Help

Are you getting troubled with all the monotonous accounting work? The Assetsoft team is here to help. Our industry experts and consultants can develop an immaculate automated accounting system with the use of AI, Machine Learning, and more. Our team specializes in back office outsourcing services for all your accounting needs. 

 

If you are a small business that wants to reap the benefits of AI in automating your AP, you can talk to us. We will guide you on this journey to revamp your manual system with the best technical solutions. No more investing in full-time in-house expert staff; you can just outsource the work and reassign your workforce to other matters of importance.  Contact the Assetsoft team today!

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