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.