Cybersecurity Companies Don’t Catch All Fraud (Hint: Check Your AP Processes)

You cannot rely on your accounting team as the first line of defense regarding fraud. The truth is that AP teams have limited resources, including the inability to examine every invoice or request. Manual invoice auditing invariably has gaps that render the entire process vulnerable to scams.

According to the 2023 AFP Payments Fraud and Control Survey, 65% of organizations were targets of payment fraud in 2022. Automated invoice auditing assists companies in only paying for what they procure. Gartner reports that 73% of company invoices are unaudited due to the cost. However, the stark reality is that invoice audits can realize a 53% cost saving. Hence, it presents a considerable window for automation and service providers.

Leveraging AP Automation

Leveraging AP automation allows real-time invoice auditing so AP teams can scale rapidly while maintaining quality. Catching fake invoices as soon as they enter the system is the best way to deal with fraudulent activity. You can also communicate with your vendors immediately to resolve potential issues.

It is critical to guarantee the integrity of vendor data. Even the most diligent accountant can’t avoid vendor payment information changes. AP automation removes this manual step. It means your accounting team can immediately flag any fraudulent invoices with altered key vendor details.

Monitoring internal threats and reducing internal fraud is non-negotiable. You will see an immediate increase in productivity as your finance team can finetune its expense auditing and validation approach without blocking any workflows. Automation effectively means more robust controls by your finance team when tackling the danger of internal fraud.

Use AI to Automate AP

Gone are the days when professional service companies in this space charged a variable percentage of the invoice value. Now, clients need a fast return on investment and real-time visibility of their entire supplier network at a stable monthly price. 

It is a business imperative if you have many variable costs, from freight to marketing and contract workers. What’s more, distributors and retailers will increase their margins while preventing the impact of an inadequate invoicing process.

You can deploy AI-based automation to compare invoices with purchase orders, estimates, bids, or proposals effortlessly. The team will receive alerts to any inaccuracies, which they can investigate. Sharing information fosters collaboration as you share information with your suppliers.

Advanced workflow automation can integrate directly into your customer’s back-office suite, accessible by a real-time dashboard for analytics into the total discrepancies, their value, invoice accuracy per supplier, and the total savings realized. Your savings are visible in real time, allowing you to strategize further to expand your terms and boost cash flow.

Digitize and Reconcile AP in Real Time

A primary benefit of AI-based automation is preventing suppliers from overcharging. It’s a significant first step, as a Forbes study found that an astonishing 30% of invoices are incorrect. Invoice auditing is thus a priority that automation facilitates faultlessly.

Simply register for the product and use the no-code email sent to integrate effortlessly. Enterprise clients can access prebuilt ERP and accounting system interfaces and client reporting.

Remember that fraud remains a daily problem, even if you opt for automation. Credible vendors may have malicious intent; cyber attackers can change actual invoices, or simply generate false ones.

The fact remains that paper or PDF invoices continue to present a golden opportunity for data changes or payments channeled into an incorrect bank account. These are still relatively mundane attempts compared to more sophisticated attacks, like deepfake tools. It means your company needs all the resources to prevent such attacks and losses and safeguard its revenue stream.

AI-based AP automation is a crucial defense against fraud in today’s business landscape. It allows real-time fraud detection and prevents overcharging by suppliers. While cybersecurity and diligent teams play their roles, automation provides an additional layer of protection. However, businesses must remain vigilant, as fraud tactics evolve. Embracing AI-based AP automation enhances efficiency and safeguards your revenue against fraudulent threats.

How AI Eliminates Cash Leakage for Treasury Teams

Cash leakage is one of the most significant challenges facing treasury teams today. It refers to the loss of cash due to errors or inefficiencies in financial processes. Cash leakage can occur in various ways, including overpayments, duplicate payments, and missed discounts. It not only affects a company’s financial performance but also damages its reputation.

Fortunately, advancements in technology have provided treasury teams with tools to eliminate cash leakage. One of the most promising tools is Artificial Intelligence (AI). In this article, we will discuss how the use of AI can eliminate cash leakage for treasury teams.

AI-Powered Invoice Processing

One of the most significant sources of cash leakage is invoice processing. When invoices are processed manually, there is a higher risk of human error, which can result in overpayments and duplicate payments. Employing AI-driven solutions for invoice processing can effectively eliminate these risks.

The AI-driven approach employs machine learning algorithms to extract data from invoices and match them with corresponding purchase orders, contracts, and other associated documents. This eliminates the need for manual intervention, reduces errors, and ensures that payments are made accurately and on time.

Automated Fraud Detection

Fraudulent invoices are another significant source of cash leakage. Fraudulent invoices can be difficult to detect, especially when they are mixed with legitimate invoices. AI-powered fraud detection can help identify fraudulent invoices and prevent them from being paid.

AI-powered fraud detection uses machine learning algorithms to analyze invoice data and identify patterns and anomalies that may indicate fraud. This helps treasury teams to identify fraudulent invoices early and take appropriate action.

Real-Time Cash Flow Forecasting

Cash flow forecasting is essential for treasury teams. It helps them to identify potential cash shortfalls or surpluses and take appropriate action. However, traditional cash flow forecasting methods are often slow and inaccurate. AI-powered cash flow forecasting can help eliminate these issues.

Analyzing historical financial data with machine learning algorithms to identify patterns and trends enables more accurate real-time cash flow forecasting, empowering treasury teams to take prompt and informed action.

Take Control and Shield Against Cash Leakage

Cash leakage is a significant challenge facing treasury teams. However, advancements in technology, especially AI, have provided treasury teams with tools to eliminate cash leakage. AI-powered invoice processing, automated fraud detection, and real-time cash flow forecasting are just a few examples of how AI can help eliminate cash leakage. By leveraging these tools, treasury teams can take control of their finance operations and improve their financial performance, reduce risk, and protect their reputation.

Why Finance Should Be the First AI Implementation in Your Organization

Artificial intelligence (AI) has become an essential part of modern business and digital transformation initiatives because it is revolutionizing the way we work, interact, and make decisions. However, implementing AI can be daunting, especially for organizations new to the technology. That’s why it’s crucial to start with a clear plan and focus on an area where AI can have the most significant and tangible impact. In this blog post, we discuss why finance should be the first AI implementation in your organization.

Improve Accuracy and Efficiency

Finance is a critical function in any organization, involving complex processes that require a high degree of accuracy and efficiency. AI can help improve these processes by automating tasks, reducing errors, and increasing speed. For example, AI-powered software can automate invoice processing, reducing the need for manual intervention and freeing up resources to focus on critical tasks.

Increase Data Insights

AI can help finance teams make better decisions by providing data insights. By analyzing large amounts of data, AI can identify patterns, trends, and anomalies that might be missed by humans. This information can be used to optimize financial processes, identify cost savings, and improve financial forecasting. AI can also provide real-time insights into financial performance, allowing organizations to make informed decisions quickly.

Enhance Fraud Detection

Fraud is a significant risk for any organization. Traditional fraud detection methods rely on rules-based systems that are limited in their ability to detect new and sophisticated fraud schemes. AI can help overcome these limitations by using machine learning algorithms to detect patterns and anomalies in financial data that might indicate fraud. By detecting fraud early, organizations can reduce their losses and protect their reputation.

Improve Supplier Experience

Finance is often the first point of contact between an organization and its suppliers. AI can help improve the supplier experience by providing faster and more accurate responses to inquiries, automating routine tasks, and delivering insights through dashboards based on vendor data. For example, AI-powered solutions can eliminate the need for supplier portals that typically require training, adoption, and other time-intensive processes that make working with finance challenging.

Drive Revenue Growth

By optimizing all of the areas mentioned above, AI can help finance teams improve financial processes, reduce costs, and identify new revenue opportunities. With the right technology, such as an AI-native AP automation solution, greater efficiencies can mean millions of dollars in savings from overbillings, fraudulent invoices, and complex invoicing. The right solution will also reduce clawback time, free up cash flow, and offer a significant ROI in days, not years.

First AI Implementation

With many companies exploring where, when, and how to implement AI into their organizations, it’s clear that finance should be the first AI implementation. AI solutions that are easy to implement and generate tangible benefits can have a significant impact on an organization’s financial performance, making them better equipped to meet future challenges (and fund additional AI projects) to stay ahead of the competition.

Interested in how much you can save with an AI for AP automation solution? Try the OpenEnvoy ROI calculator and get results in seconds.

Say Goodbye to OCR and Human Input: Automated Data Extraction for Financial Documents

The extraction of data from invoices and other financial documents has long been a tedious and error-prone process, requiring the use of optical character recognition (OCR) software and manual data input from humans. However, advancements in artificial intelligence (AI) and machine learning (ML) have made it possible to automate this process entirely, eliminating the need for OCR and human input. Automated data extraction is a game-changer for businesses of all sizes, as it saves time, reduces errors, and improves efficiency. Let’s take a closer look at how it works and the benefits it provides.

How Automated Data Extraction Works

AI and ML algorithms are used to analyze documents and extract relevant data. The software can identify key fields, such as invoice number, date, vendor, and amount due, and extract the data without the need for OCR or human input.

Intelligent software can handle various document types, including invoices, purchase orders, receipts, and contracts, and can extract data from both structured and unstructured documents. It can also learn and improve over time, becoming more accurate and efficient as it processes more documents.

Benefits of Automated Data Extraction

Automated data extraction provides numerous benefits for businesses, but let’s look at the top four.

Maximize Time Savings

By eliminating the need for manual data input, automated data extraction saves businesses significant amounts of time. This time can be better spent on more critical tasks, such as analyzing data and making informed decisions.

Eliminate Human Errors

Manual data input is prone to errors, which can lead to costly mistakes and delays. Automated data extraction reduces the risk of errors by eliminating the need for human input and improving accuracy.

Improve Efficiency

Efficiency is the hallmark of automated data extraction, which significantly optimizes the data extraction process. This boosts the overall efficiency of the finance department and reduces delays in processing invoices and other financial documents.

Enhance Data Quality

The quality of data is vastly enhanced with automated data extraction, ensuring that it is accurate and consistent. This improves the reliability of financial data, making it easier to make informed decisions.

The Future of Automated Data Extraction

Although automated data extraction is still evolving, new advancements in AI and ML are making the process even more efficient and accurate. As businesses continue to digitize their processes, automated data extraction will become even more critical, allowing them to process large volumes of data quickly and accurately.

In this evolving landscape, AI-based automated data extraction will prove instrumental in helping finance teams regain control of cash flow by virtually eliminating errors, achieving the highest levels of data quality, and realizing substantial cost savings through the elimination of human intervention. This transformational technology is set to reshape the way businesses operate, and those who embrace it will not only stay ahead of the competition but also thrive in the digital age.

Learn how OpenEnvoy is transforming data extraction with a 100% accuracy SLA and touchless process.

Finance’s Manual Automation Oxymoron: All AP Systems are Not Created Equal

In the realm of finance, there is no denying that numerous processes are bogged down by tedious, repetitive tasks like data entry and report generation. However, it’s abundantly clear that these tasks are a perfect match for automation. By automating these tasks, finance professionals can focus on more strategic activities, such as data analysis and decision making.

It’s not new or surprising to say that automation is particularly beneficial for accounts payable. Automated systems scan incoming invoices, validate them against purchase orders and receipts, and route them through workflows for approval. These workflows reduce the time and effort required for manual invoice processing.

But the reality is, workflows are not true automation

At their core, workflows are a series of steps that move data or documents through a predefined path. While workflows can help streamline processes and increase efficiency, they still require human intervention at various points along the way, such as manually approving invoices or entering data into a form. Essentially, workflows are manual automation.

True automation, on the other hand, eliminates the need for human intervention altogether. Automated systems operate 24/7 and handle a wide variety of tasks without error. A truly automated system performs data entry, generates reports, and sends notifications without any input from a human operator. This level of automation leads to significant time and cost savings, and reduces the potential for human error.

True automation can be expensive and challenging

“True automation” requires a significant investment in time, technology, and people to design, develop, and implement automated systems. Additionally, many AP processes — particularly those in industries such as shipping, logistics, manufacturing, and media — are complex and require a high degree of customization to achieve full automation. 

In some cases, it may not be possible to fully automate a process due to unique invoicing exceptions or regulatory or compliance requirements. As a result, many businesses have opted for a hybrid approach, combining workflows with automated systems. In this model, workflows are used to streamline processes, while automated systems handle repetitive or routine tasks. 

The impact of AI and ML

For “true automation”, finance teams need to utilize systems with artificial intelligence (AI) and machine learning (ML) as native components of their operations and processes. With AI and ML, processes are not just streamlined; the system is continually learning and adapting for increased optimization.

The benefits of this approach are significant. Workflows and human interaction are continually minimized, efficiency is increased, errors are practically eliminated, and a high degree of accuracy and compliance is maintained. And the financial gains are even more impressive. Specifically, millions of dollars are gained by increasing control over vendor payments and credit, and by reducing fraudulent and duplicate invoices and overbillings. With the right platform, an AI- or ML-based solution can pay for itself in a few months.

The best of all worlds

While workflows serve as valuable tools for automating business processes, they are no substitute for the game-changing power of AI- or ML-based automation. True automation demands dedication and investment, but the rewards are immense. By embracing AI and ML and partnering with an experienced vendor that has made these investments on their behalf, finance teams can navigate the path to unparalleled efficiency and quickly regain control of cash flow.

Learn how AI and AP should come together in the Gartner Hype Cycle for Procurement and Sourcing Solutions 2023.