As the sun rises, the AP departments are buzzing with activity. The teams start their days by reviewing and prioritizing the invoices that have flooded in overnight.
AP professionals are experts at swiftly sorting through this sea of paperwork, ensuring that each invoice is accurately recorded and processed. Their daily routine includes:
Coding invoices with accurate purchase categories and GL accounts which drains considerable AP resources.
Cross-referencing invoices with purchase orders or contracts, and receipt of goods or services confirmed.
Identifying discrepancies or missing information in invoices, which kicks off a tedious cycle of back-and-forth communications with suppliers and internal teams.
Every bump in the road prompts further investigation and approval, adding layers of complexity and time. The paper trail can sometimes make matters worse, amplifying both time and costs.
OCR technology, while helpful in digitizing paper invoices, has its limitations, often requiring AP teams to verify its accuracy manually. This leads to a never-ending cycle of tweaks and corrections; a headache AP teams would much rather avoid.
Despite hopes of AI-driven improvements to OCR, the reality falls short, leaving AP teams constantly juggling this technological hiccup, especially when dealing with new suppliers regularly.
According to Ardent Partners, a significant 45% of AP teams find themselves grappling with invoice exceptions, turning their journey to success into a challenging obstacle course. And to make matters worse, a whopping 22.5% of all invoices end up needing manual intervention.
So, how do we turn this chaotic scenario around? Let's bid farewell to the headache-inducing OCR and instead, welcome the efficiency of a robust supplier network, and empower suppliers to tackle invoice exceptions before they reach the AP inbox.
By eliminating tedious, manual tasks and slashing the number of invoice exceptions, we can transform the daily grind of AP departments into a joyful experience.
Plus, this gives AP more time to dive into big-picture, high-impact projects, helping them grow personally and feel more fulfilled at work.