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How AI Can Improve Your Accounts Payables And Cashflow Management

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Cashflow is the very lifeblood of any business. With it growth and new opportunities can be exploited; without it, long-term strategies evaporate as all hands get on deck to sort out the immediate short-term cashflow requirements of the business.

These cashflow challenges can come from a variety of different sources. Most will come from either the debtor side – eg bad, doubtful or disputed debts slowing payments or on the supply side where suppliers may have put supplies on stop because you have not paid them on time.

As business people, it is essential for us to monitor cash flow management and ensure we have sufficient liquid funds within the business. Without this control, insolvency is the unpalatable potential outcome – where a business cannot pay its debts as and when they fall due. 

Through our interactions with our Enterprise-grade clients, we have seen first-hand the exceptional rigour around managing cashflow. Our AI-powered Accounts Payables transformation platform enables Enterprise and Governmental Accounts Payables (AP) teams to effortlessly manage their Accounts Payables better through the smart use of the latest and smartest digital technologies.

By having high-quality digital processes and workflows in place, our clients not only have a controlled Accounts Payabales function but they can take advantage of supplier discounts through early payment. 

Given our platform is at the heart of improving cashflow management, I was delighted to be asked by Dynamic Business to be part of the discussions with 17 other great technology and business leaders on how each of us approaches cashflow management. We focused on Accounts Payables.

We have summarised our own opinions on cash flow management with particular reference to Accounts Payables below, but you can read the full article that includes 17 other top business leaders on The art of effective cash flow management on Dynamic Business’s website.

Table Of Contents

  1. How AP Automation improves the financial health of any business
  2. Eliminate incorrect and overpayments
  3. Accelerate invoice processing times
  4. Enhance financial clarity
  5. Ensure compliance and security

How AP Automation improves the financial health of any business

Managing suppliers, invoices, and payments efficiently is critical for the financial health of any business. AI-based technologies integrated into accounts payable (AP) automation software, for example, can help you better control and optimise supplier onboarding and invoice processing, resulting in more efficient use of your company’s resources. Removing so many manual processes reduces human errors and helps you build stronger supplier relationships. There are several benefits to automating the AP process.

Eliminate incorrect and overpayments

There is so much complexity with Accounts Payables with diverse suppliers, large and small, domestic and international. Each has technical maturity and operational requirements. This means there are  

  • Multiple channels for invoice submission, eg email, differing portals, the Peppol Network etc
  • Complex state, federal and overseas tax and regulatory requirements.
  • Multiple supplier invoice formats, eg PDF, excel, and even handwritten invoices!

This can lead to manually having to process supplier invoices, appropriate compliance and managing differing supplier invoice formats. 

AP automation decreases the risk of data entry errors. It further eliminates the need for manual handling, hence avoiding unnecessary, incorrect, and duplicate payments. This also decreases unnecessary payment delays caused by errors, guaranteeing excellent supplier relationships and an ongoing smooth flow of goods and services. With better control of your AP you have visibility across your whole supplier base and can easily eliminate the danger of being cut off.  

Accelerate invoice processing times 

AP automation accelerates invoice processing by automating operations like invoice receiving, data extraction and entry, and approval workflows. AI automates various invoice submission methods for precise data extraction, allowing for faster payment processing and preventing you from missing out on early payment discounts. 

Enhance financial clarity 

AP automation gives you real-time visibility and insights into key financial metrics such as payment performance, obligations, liabilities, and the status of supplier invoices and payments. This allows management teams to make informed and proactive decisions and avoid unnecessary cashflow shortages.

Ensure compliance and security

Intelligent AP automation systems include built-in compliance and security tools that help ensure payments are made correctly and securely against appropriate taxation and regulatory compliance. With sophisticated, vigilant inspection, AI is the quiet watchdog that identifies exceptions and reduces the risks of fraud.

In today’s fast-paced business environment, AI-powered AP automation software is a crucial tool for keeping your cash flow healthy and financial processes running smoothly.

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How AI Can Improve Your Accounts Payables And Cashflow Management
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