In the world of business, the procure-to-pay<\/a> process packs a powerful punch.<\/p>\n The Accounts Payable (AP) function is a critical component of a company’s procure-to-pay cycle because it ensures financial transactions related to procurement are handled accurately, efficiently, and in compliance with policies and regulations.<\/p>\n It helps manage cash flow, build vendor relationships, maintain compliance, control costs, provide financial data for reporting, and contribute to overall efficiency and accountability.<\/p>\n Because it is responsible for managing and recording the company’s outgoing payments to suppliers, vendors, and creditors, effective AP management<\/a> is crucial in ensuring the financial stability and smooth operation of a business.<\/p>\n Let\u2019s delve into key technology that has transformed the AP process.<\/p>\n In the past, AP departments relied heavily on paper-based, manual workflows, where invoices arrived via mail, and payments were made using printed cheques.<\/p>\n Technology has revolutionised invoice processing<\/a> and other core AP activities by automating processes, improving accuracy, reducing costs, enhancing security, and providing better visibility into financial data.<\/p>\n These advancements have not only increased business efficiency but have also elevated the strategic importance of AP<\/a> within organisations.<\/p>\n As businesses continue to seek ways to streamline operations and enhance financial management, technology remains a primary enabler for achieving these goals within the AP department.<\/p>\n Optical Character Recognition (OCR)<\/a> is a technology that gained traction in the late 20th century as a tool to convert printed or handwritten text, numbers, or symbols into machine-readable, digital text.<\/p>\n As businesses sought ways to improve efficiency and reduce manual data entry errors in their AP processes, OCR technology found its way into the AP function. By the early 2000s organisations started implementing OCR software to automate the extraction of data from invoices, purchase orders, and other financial documents.<\/p>\n With advancements in OCR technology and the integration of OCR solutions with other financial software systems, the adoption of OCR in AP accelerated in the mid-2000s.<\/p>\n Organisations increasingly relied on OCR to expedite invoice processing, reduce manual intervention, enhance data accuracy, and become more responsive to the demands of a dynamic business environment.<\/p>\n Combined with other automation tools, OCR technology transformed the AP function by making it more streamlined and digitally driven.<\/p>\n The application of OCR in the AP function has continued to evolve and improve, with the integration of artificial intelligence (AI) and machine learning (ML) technologies.<\/p>\n The single biggest benefit of AI-OCR<\/a> is the ability to automatically capture information contained on a document of virtually any format, and then use the data to automate what would otherwise be time-consuming tasks with high potential for oversight or error.<\/p>\n In addition to automation, modern AI-OCR solutions utilise advanced algorithms and statistical models to enhance accuracy by continuously improving text and image recognition capabilities.<\/p>\n While the intelligent part of AI-OCR enables it to predict (with a degree of confidence) the context of the data it reads, if it makes an incorrect assumption, the machine learning capabilities mean user corrections can help it refine its contextual predictions and improve recognition accuracy over time.<\/p>\n These advancements have further improved data capture and extraction accuracy and have enabled more intelligent automation of AP processes making it an indispensable technology for the digital age.<\/p>\n Both traditional OCR and AI-enhanced OCR technologies are used to automate and streamline document processing tasks; however, they have key differences in their capabilities and impact on the AP process.<\/p>\n While both traditional OCR and AI-OCR perform core text recognition functions in the AP process, AI-OCR offers advanced capabilities, adaptability, and automation, making it a more efficient and accurate choice for modern AP automation and processing needs.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/precisebusiness.com\/NL\/wp-content\/uploads\/sites\/3\/2023\/12\/Five-Core-Capabilities-of-AI-OCR-for-AP-Processing.svg” alt=”Core components of Predictive Maintenance” title_text=”Five Core Capabilities of AI-OCR for AP Processing” _builder_version=”4.20.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.20.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Text” _builder_version=”4.20.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”0px||||false|false” global_colors_info=”{}”]<\/p>\n Online requisition management workflow solutions are designed specifically to address procurement process inefficiencies; right from the initial point of requisition to the moment the purchase order (PO) is received.<\/p>\n Streamlining and automating each stage of the procurement process minimises the number of additional tasks filtering through to the AP team.<\/p>\n When AP workflow functionality is integrated with a requisition management system, the processing<\/em> of AP invoices becomes automated.<\/p>\n However, a crucial first step in this process has traditionally been manually entering AP invoice data into the system such as header or line details. This manual entry can – and has<\/em> – resulted in delays and errors which have quickly grown into costly problems for many businesses.<\/p>\n This is where AI-OCR technology integrated with a requisition management system can shine.<\/p>\n For both PO-related and non-PO (miscellaneous) AP invoices, AI-OCR technology can scan and lift data from an invoice to automate the process of entering AP invoice data.<\/p>\n If an inaccuracy or anomaly occurs from the initial AP invoice scan, and the AP team makes a correction in the system, artificial intelligence updates the AI-OCR process, assigning a higher \u2018confidence\u2019 to the corrected value which increases the accuracy of subsequent scans. So, the more the AI-OCR technology is trained, the more it learns, and the more accurate it becomes.<\/p>\n Ultimately for the AP team, their role in this crucial first step becomes one of exception handling.<\/p>\n AI-OCR can also significantly reduce the time spent manually matching PO invoices with PO receipts. AI algorithm functionality examines part numbers and several other fields on scanned invoices to identify potential matches among open PO receipts.<\/p>\n When large volumes of invoicing are required, AI-enhanced OCR is better equipped than traditional OCR to handle the complexities and variations encountered in financial documents. This capacity to automatically capture, extract, and validate data from PO invoices, and match to PO receipts, enables businesses to process invoices more efficiently, reduce errors, and gain better visibility into their financial obligations.<\/p>\n Is your business ready to embrace AI-OCR for your AP functions?<\/strong><\/p>\n Whilst many procurement and AP automation systems offer OCR or Intelligent Data Capture (IDC) technology, there are few that include AI along with machine learning.<\/p>\n If you are looking for a functionally rich, yet affordable, procure-to-pay solution that has been built for Epicor Kinetic and Epicor Cloud and embraces the latest AI-OCR technology, look no further than Advanced Requisition Management.<\/p>\n Contact us to discuss your procurement and AP automation requirements. If you like what you hear, we can set up an obligation free demo so that you can take a closer look.<\/p>\n <\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”94px” custom_margin=”-35px|||||” global_colors_info=”{}”]<\/p>\n Book a Discovery Call<\/a>\u00a0with our ERP expert in the Benelux region to learn more about how an ERP system can transform your business.<\/p>\n Subscribe to our LinkedIn Newsletter<\/a>\u00a0and get alerts when we post about topics that matter to you.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" When large volumes of invoicing are required, AI-enhanced OCR is better equipped than traditional OCR to handle the complexities and variations encountered in financial documents. This capacity to automatically capture, extract, and validate data from PO invoices, and match to PO receipts, enables businesses to process invoices more efficiently, reduce errors, and gain better visibility into their financial obligations. <\/p>\n","protected":false},"author":412,"featured_media":32943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":" Thirty-five days. Just over one month. That's all the time you have to submit the first aged care provider Quarterly Financial Report (QFR) after\u00a0the end of the July-September quarter.\u00a0<\/span><\/p>\r\n It might seem like a long lead time, but extracting and compiling data across many different business areas is time-consuming - especially if you don't have a single source of truth to tap into or a system that connects all business processes and enables automatic extraction of relevant data.<\/p>\r\n Instead, what lies ahead is hours and hours of manual data collection. You will need to check and double-check for human error. You will need to gather in-depth information from HR, Payroll, Operations, Governance, Facilities and Asset Management, IT, Food and Nutrition Services, and Finance. You will need to sift through reams of spreadsheets to extract the information you need. The thought of it is mind-boggling.<\/p>\r\n Your current processes only add to the complexity. They don't allow you to capture all the information required to meet stringent accountability, reporting, and record-keeping obligations, let alone the quality of care compliances tied to funding.<\/p>\r\n You've got 35 days, but you've done the math, and your quarterly reporting requirement could take four weeks to compile. To make matters worse, you are already operating with limited staff resources, and the extra admin work introduced following the Aged Care Reform<\/a> has left you struggling with the new pressures.<\/p>\r\n The future is overwhelming. Once this reporting period is finished, there's little time before the entire process is repeated. There is, however, a silver lining.<\/p>\r\n The data-gathering process will reveal a goldmine of information you can use to shape a business case for investing in improvement measures. An easier approach is needed - there's no denying it - and you've decided an ERP software system could be the answer. The right ERP<\/a> will equip your organisation with the tools needed to produce compliance reporting, pull together reporting data, and increase productivity and efficiency. All this equates to significant time and money savings.<\/p>\r\n A single source of truth is not a pipedream. It can be a reality. Here's why the new Aged Care QFR doesn't have to be a taxing time.<\/p>\r\n <\/p>\r\n The QFR has five distinct sections:<\/a><\/p>\r\n Residential aged care providers must submit four of the five sections, including the viability and prudential compliance questions, quarterly financial statements, residential care labour cost and hours reporting, and quarterly food and nutrition report.<\/p>\r\n Home care service providers must complete three of the five sections, including viability and prudential compliance questions, quarterly financial statements, and home care labour cost and hours reporting.<\/p>\r\n How difficult and time-consuming the reporting process is will depend on several factors, one being how you store your information. If you data is not stored in a unified systems, or can be easily extracted and consolidated into a central data store, you will have to invest more resources into your QFR process.<\/p>\r\n For example, you may have to draw from several source pools, including your CRM, payroll and accounting software, project management tools, and human capital management. If you can't easily navigate these tools yourself, you'll need to speak with various area managers and wait for them to response with the correct data.<\/p>\r\n From there, you'll need to collate the data, read through the information, identify relevant insights, and manipulate the data into spreadsheets. then, you'll need to double-check that you've entered everything error-free and that your formula's are working as they should be. Finally, you can submit the information to the department's online portal.<\/p>\r\n All government-funded aged care service providers must meet the Aged Care Quality Standards.<\/a> The QFR is one aspect of ensuring your organisation meets these stringent regulations. Even if human error is to blame, failing to provide accurate information can have far-reaching consequences, including:<\/p>\r\n Many of our prospective customers have shared business inefficiencies, challenges, and pain points with us, all of which have impacted their ability to generate accurate QFR's. So as you undertake your reporting tasks keep an eye out for the following. These are tell-tale signs your organisation is in need of a systems refresh.<\/p>\r\n The above pain points are all too familiar and investing in a system transformation is the only way to change things. If you feel compelled to present a strong business case highlighting the time and cost savings an ERP could deliver, here are three tips to sharpen your business case and secure buy-in for change:<\/p>\r\n Need help formulating your business case for a new ERP system? We can help.<\/p>\r\n Precise Business Solutions have extensive aged care industry-specific experience and purpose-built software to meet your unique requirements. We can help you find which parts of your organisation that are starting to hinder your efforts to grow. In a one-to-two hours hands-on workshop, we can help you uncover the root cause of your critical business challenges and lay the groundwork for project success. The best bit? It's absolutely FREE of charge.<\/p>\r\nTechnology and the AP Function<\/strong><\/h2>\n
The Traction of OCR Technology<\/strong><\/h2>\n
Artificial Intelligence (AI) and OCR<\/strong><\/h2>\n
Key Differences: Traditional OCR v AI-OCR<\/strong><\/h2>\n
Traditional OCR<\/strong><\/h3>\n
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AI-enhanced OCR<\/strong><\/h3>\n
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Boosting the Accounts Payable Function with AI-OCR<\/strong><\/h2>\n
Inspired to Act?<\/strong><\/h2>\n
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<\/a><\/p>\r\nWhat Information is Needed for Quarterly Financial Reporting?\u00a0\u00a0<\/strong><\/h2>\r\n
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How Difficult is it to Produce and Submit the Required Reports Manually?\u00a0<\/strong><\/h2>\r\n
What are the Risks of Reporting Manually?\u00a0<\/strong><\/h2>\r\n
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Take Note if you Experience These Manual Reporting Pain Points\u00a0<\/strong><\/h2>\r\n
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Three Tips to Improve Your Business Case for a Transformation\u00a0<\/strong><\/h2>\r\n
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Start Building Your Business Case to Drive Change Today\u00a0<\/strong>\u00a0<\/strong><\/h2>\r\n