by Navin Gupta, on Nov 25, 2020 8:04:27 PM
Estimated reading time: 3 mins
Pandemics come and go. But process automation is here to stay. It builds the much necessary digital infrastructure for businesses to tide over exigencies that arise from time-to-time, allowing them to deliver on the dot and with high precision, by using the available manpower. It future-proofs your business against periodic business disruptions. Finance & Accounting automation in general and Accounts Payable automation in specific has been the agenda of businesses since a long time. However, due to the recent tryst with pandemics and lockdowns has put the AP automation in focus as it is a dire necessity of businesses operating in tightly connected and intermingling ecosystems, where a slowdown in one entity is likely to affect the other entity.
Cash Flow Optimization in the business ecosystem
Sustained cash flow is the lifeline of businesses. Unless client A pays to vendor B in time, vendor B will not be able to process any supplies and his business gets held up. Due to this situation, A will not get his supplies next time thus affecting his go to market strategies and product sale that influences his cash flow in return. The situation gets all the more messed up if A has distributed operations in different cities and across different channels, and B and probably other vendors C and D, who supply raw material to A, don’t receive their payments in time particularly due to widespread business disruptions, such as the global pandemic. Many such results in different scattered ecosystems is a sure recipe for the national economy disaster.
AP automation saves the day for businesses and their ecosystems, who have to keep the lights on even during unprecedented times, as even one day of closing the business results in unsurmountable loss. They have to get going even with the few employees reporting to office, some being ill and out of action, and some not able to reach the office due to the state implemented statutory measures. AP automation sets the process rolling as soon as the vendors upload scanned images of their invoices on to the vendor portal from the remotest locations. It is the first step to ensuring a sustained cash flow. Latest technologies, such as Intelligent Data Processing (IDP), Robotic Process Automation (RPA), Artificial Intelligence (AI)/ Machine Learning (ML), Workflows, and Analytics, capture and route the details from the invoices to the relevant departments to initiate processing.
How does AP automation work?
As IDP captures the data from the invoice images, RPA, AI/ML, & workflows quickly routes the data to the concerned departments. In-built logic enables detection of fraud right at the data ingestion stage.
The system uses 2/3 way auto-matching as well as auto-validates using the goods received note and advance shipping notice. Integrated approval mechanisms route the payment advice, with pre-defined thresholds and variances, through different departments.
Authorized personnel manually approve the auto-validated data. Integrated mobility solution enables checking the data anytime, anywhere, through mobile devices. Inbuilt checks allow auto-detection of duplicate invoices and allow to initiate recovery of duplicate payment.
Dashboards powered by BI, Analytics, and Visualization highlights various KPIs and offer complete visibility and transparency across the process.
Simply put AP automation future proofs the AP function.
Advantages of AP automation
AP automation allows to function with limited resources and provides a buoyancy to the entire business ecosystem at the same time:
- Allows to process payments in absence of physical bills with the help of scanned bills, GRN, and advance shipping notice
- Detects fraud at inception
- Offers auto-validation of data based on pre-defined, in-built business logic
- Allows to auto-detect duplicate invoices
- Allows to initiate duplicate payment recovery
- Allows to book early payment discounts
In conclusion
AP automation enables businesses to keep the “lights on” even during unprecedented times, such as pandemics, where they have to function with limited manpower. Simply, put AP automation pandemic-proofs your AP function and improves cash flow in the close knitted business ecosystem.
