Every business, no matter how big or small, needs to have an effective accounts receivable process in place. This is because the accounts receivable department is responsible for bringing in money that is used to keep the company running smoothly.
Intelligent document processing can help to reshape your accounts receivable process in a number of ways. For example, it can help to speed up the invoicing process, which will, in turn, lead to quicker payments. Additionally, it can help to reduce the amount of human error that is often associated with manual data entry.
Intelligent Document Process in AR
According to a Dun & Bradstreet and the Credit Research Foundation study, as much as 10% of outstanding invoices to customers are more than 90 days past due in certain sectors. Some buyers are unable to pay on time, and there is nothing accounting receivables can do about it. However, effective and organized invoice submission processes may be used as a way of influencing buyers.
While intelligent document processing won’t guarantee that customers will pay on time, it can help to streamline the accounts receivable process and make it more efficient. This is because intelligent document processing can help to automate the data entry process, which can free up time for AR professionals to focus on other tasks.
Intelligent document processing can also help to improve communication between buyers and sellers. This is because intelligent document processing can help to ensure that invoices are accurate and that all the necessary information is included. This can help to reduce the number of disputes that arise and can also help to speed up the payment process.
Benefits of Intelligent Document Processing (IDP)
Intelligent document processing (DP) is a technology that uses intelligent algorithms to process and extract data from documents. This data can then be used to populate databases or to generate reports.
Intelligent document processing (IDP) platforms are a recent technology in the automation market that uses AI to manage documents and data input. Accounts receivable procedures are usually extremely manual, relying on information conversion into digital data for both internal and client computer systems. This process is commonly carried out by employees who manually transcribe information from paper documents into software systems or key in data from emails.
IDP can automate all of these tasks by intelligent algorithms that are able to read and understand documents just like humans. Once the data has been extracted, it can be automatically entered into the relevant software system without any human intervention. This not only saves time and reduces processing costs but also eliminates errors that can occur when data is manually entered.
IDP can also be used to manage outgoing invoices. Rather than relying on employees to manually generate invoices and send them out to clients, IDP can automatically generate invoices based on data from your company’s sales system. This not only saves time but also reduces the risk of errors and ensures that invoices are always sent out in a timely manner.
Finally, IDP can help you manage customer payments. Rather than manually processing each payment, IDP can automatically apply payments to invoices and update your accounting system accordingly. This not only saves time but also reduces the risk of errors and ensures that your customer records are always up-to-date.
IDP is a powerful tool that can help any company streamline its accounts receivable process. If you’re looking for ways to improve your AR process, IDP should be at the top of your list.