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In today’s world of business, speed and precision are important. Organizations use accounts payable automation to manage their invoice processing. Given the vast number of solutions available in the market, it can be quite difficult to select the right APA solution. This blog elucidates the features to look for when selecting a cross border AP Automation solution.

Understanding the Complexity of the Market

Entering and operating in the APA market can be a maze. There are quite a few vendors in the market who provide half-baked solutions, which most of the time are add-ons to their main products. This can prove to be rather challenging when trying to identify the best approach or product for automating Accounts Payable. Gartner
states, “The vendors that come from a particular domain usually have a higher ground towards their starting domain.” As such, it is essential to focus on vendors that are specifically APIs-first rather than ones who offer APIs as an additional feature payable-automation Cherrywork AP Automation is one such solution that offers API first approach.

Defining Accounts Payable Automation (APA)

APA solutions are designed to automate processing and payment of invoices in adherence to various laws and standards of the operating country . Apart from ensuring maximum automation for operational excellence, APA tool needs to ensure the entire invoice processing is compliant with prevailing regulations

The APA market has developed from three sub markets namely- e-invoicing capture, match/code and workflow automation and payments, thereby making it a substantial size.

Advanced AI/ML Capabilities Optimizing AP Efficiency

Today’s APA integrates complex artificial intelligence and machine learning features to optimize its operation.

1 Intelligent Computer Vision and NLP Capture– Optical character recognition (OCR) and NLP also powered by AI makes it possible for touchless capture of image-based documents at a very high accuracy levels.

2 AI-Enhanced OCR Capture– AI can fix the common extraction accuracy problems with OCR. Through the application of NLP, accurate extraction and identification of data is possible

3 Machine-Readable Invoices-According to Gartner research, using the ML parsing of machine-readable documents, high levels of accuracy can be attained in data extraction and processing.

4 Automated Account Coding -The application of the ML can bring about precise and consistent recommendations for account coding.

5 Fuzzy Purchase Order Matching -AI comprehends matching problems found in invoices that differ from the purchase order, for example, partially taxable services.

6 Duplicate/Fraudulent Invoice Detection– AI engines identify additional similar invoices on the content level to improve fraud detection.

7 Smart Workflows– AI adjusts the fact that invoices with errors need to go through the least number of reviewers to fix them.

8 Supplier Identification -AI even pinpoints the unique supplier from a set of data, thus eliminating matching issues between purchase orders.

Raising the Standards of AP through a Focused APA Solution

The need for various features depends upon the size, structure, and nature of the operational task in each organization. As per Gartner, enterprises with over 1,000 employees look for more complex and mature solutions compared to others as they need comply with multiple country regulations, multiple account codes, PO matching rules, multiple language support, and multiple currencies among other requirements. These organizations should consider the ones with such features as artificial intelligence, real-time auditing, and cross-border payments.

Complexity and Compliance in the AP Automation Landscape

Legal concurrence is a very important component in the application of AP automation. Most governments today are constantly adding barriers to regulate what can legally be part of any invoice. One needs to have a clear understanding of the various compliance regulations including post audit methods and clearance model as compliance with taxes and regulations cannot be guaranteed without it. The AP solution needs to support the clearance model if one needs to operate in multiple nations.

Leveraging AP Automation for Strategic Value

Implementing APA solutions offers numerous benefits:

1 Enhanced Cash Management -Automation leads to more flexibility and better control of cash flow.

2 Strengthened Supplier Relationships -Supplier payments that meet the agreed-upon timeliness and accuracy standards tend to enhance the relations between buyers and sellers.

3 Reduced Costs and Errors– According to research, automation helps to minimize invoice processing costs while lowering the risk of making improper payments.

4 Compliance and Efficiency- AP automation enhances companies adhere to internal set of regulations and policies

Mapping the course to success in transforming Accounts Payable with Automation Solutions

1 Focus on dedicated APA Vendors -While selecting the vendors one should try to find those who focus on the AP automation unlike those who only provide it as a small feature of their product.

2 Evaluate advanced AI/ML features – Make sure the AP solution is powered by AI and ML capabilities for better precision and speed in invoice processing

3 Assess Compliance Features– Select a solution which can handle the changing legal demands and embrace both post-audit and live clearance options.

4 Consider Scalability – Make sure the solution has the capability to handle greater volumes and complexities as you grow in business

5 Integration Capabilities- opt for those products that can easily synchronize with the existing ERP solution and ensure real-time information exchange and smooth working environment.

6 User-Friendly Interface -Crafting an appealing GUI and coherent workflows allow for higher app adoption and shorter times to master the tool for your team.

7 Vendor Support and Service -Assess the vendor’s support based on training offered to customers on how to use the products and client relations.

Conclusion

Businesses can apply these tips to tailor for their needs in simplifying the APA market and choosing the right tool for optimization and financial success.

The adoption of AP invoice automation is indeed a revolutionary practice that has several benefits, which include the reduction of cost and the maximization of efficiency within an organization. While undertaking this journey as businesses, it is essential to choose the right APA solution that will help in realizing these advantages and enable businesses to operate competitively in the current complex world economy.

Cherrywork AP Automation (APA) offers an unparalleled Cross border AP automation solution with a host of advanced capabilities. By leveraging intelligent automation, Cherrywork APA eliminates manual invoice processing, ensuring faster and more accurate results. Its AI/ML-powered features, such as advanced OCR and natural language processing (NLP), provide touchless document capture with 95% accuracy. The solution also enhances compliance by adhering to global regulations and supports both post-audit and live clearance models. Furthermore, Cherrywork APA offers real-time data synchronization with existing ERP systems, improving cash flow management and reducing errors. These capabilities, combined with a user-friendly interface and robust vendor support, make Cherrywork APA the ideal choice for businesses looking to streamline their accounts payable processes across borders.

Book a demo with us to know more.

Cherrywork AP Automation uses document intelligence for invoice automation that optimizes invoice processing, reduces manual effort, and improves accuracy, efficiency, and compliance in financial operations.

Would you like to do the same for your organization? If yes, then reach out to us at talk2us@cherrywork.com

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