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.