Have you ever found yourself struggling with managing thousands of invoices every day? This is a very obvious problem for every business organization, no matter the size of the organization. Manual invoice management tasks become very hectic and error-prone. What if I tell you there is a better way to manage invoices?
AI Automated Invoice Processing is changing the whole business game for finance and administration for firms. Many businesses have already started using AI-powered document processing technology to improve their functioning.
If you don’t have any idea about AI invoice processing, then don’t worry. This blog will tell you everything about AI invoice processing, including how it works, benefits, and challenges.
What is AI Invoice Processing?
AI Invoice Processing is a technology that automates the process of capturing, extraditing, and processing invoice data using tools like machine learning (ML), Optical Character Recognition (OCR), and Natural Language Processing (NLP).
In simple words, AI processing technology automatically extracts necessary information from the invoices and turns the extracted data into digital text form. AI can extract data from images, PDFs, and even from handwritten invoices with 99% accuracy.
The best thing about AI technology is that it keeps improving its accuracy and efficiency. So, you don’t need to keep working on AI technology to make it up to date.
Also Read: How Cloud Accounting is Revolutionizing the Future of Financial Management
How Does AI Invoice Processing Work?
AI, in its journey towards achieving 99% accuracy in document or invoice management, crosses several stages. These stages, including data extraction, validation, integration, and handling, are all instrumental in AI’s ability to streamline the accuracy and efficiency of invoice management.
Let’s understand the AI invoice processing in detail.
Data Extraction
This is the very first and crucial step in the invoice processing. In this process, the AI extracts the data from the files that you have provided. These files could be anything, for example, images, text, handwritten invoices, PDFs, or anything else. Al will go through all the materials to analyse it first, and then it will start the extraction process.
For extraction, AI uses various tools and techniques such as OCR, ML, and NLP. OCR is a widely used technology. In simple words, it is a text recognition tool. It reads and understands the text from scanned paper documents, images, or PDFs and then turns them into searchable as well as editable formats.
There are two ways that OCR can use to extract the data. First is the Template-based OCR method and other Cognitive data capture methods. This method requires manually created templates for each invoice format because this method does not use AI.
It takes a lot of time and effort to make these templates; therefore, business organisations try to avoid using these methods. On the other hand, the cognitive data capture method uses AI and can automate the entire extraction process. This process does not require any kind of human intervention.
This way, using ML & OCR technology, AI extracts crucial information from invoices, such as name, amount, dates, and purchased items.
Data Validation
After extracting the data, AI will start to validate it. It starts cross-checking the existing data with extracted records to ensure high accuracy. The data validation process is critical to get accurate data and results.
If you receive incorrect data, then it could lead to wrong. During validation, if AI finds any irregularities, it reserves those records for human review. This way, AI invoice processing minimises the errors that can occur during the manual data extraction process.
KlearStack is a document Intelligence Company. Its OCR technology provides 99% accuracy in the data extraction process.
Data Integration
As soon as the validation process ends, AI technology starts integrating extracted data into the firm’s financial system. It includes accounting software or enterprise resource planning (EPR) systems.
This integration process is also automatic, which means, again, human intervention is not needed. This also means the speed and precision of the process would be very high.
Error Handling
The AI invoice processing technology is smart enough to resolve errors. As mentioned above, AI flags the error, if found, for human review. This error management is important to maintain the accuracy and efficiency of the technology. If technology fails to recognise the provided invoice pattern, then human intervention is needed. The good thing is AI always keeps learning and updating itself and making it familiar with new invoice formats.
Also Read: 6 Tax Accountant Tips for Corporate Taxes
5 Key Benefits of AI Invoice Processing
It is crucial to managing invoices carefully to build a successful business organization. AI invoice processing provides numerous benefits, some of which are as follows –
99% Accuracy
AI provides 99% accuracy throughout the invoice processing without any problem.
High Speed
With the help of AI, you can extract all the data and use it as you need within just a couple of minutes. It will save the organization a lot of time.
Effective Use of Human Resources
Data extraction or the overall invoice process is a hectic, time & energy-consuming task. This task can make humans mentally tired, impacting their productivity and creativity. AI can help you use your human resources to perform productive tasks that can create true value for the company.
Cost Saving
You might think that AI invoice processing is advanced technology and it would be very expensive. That’s not true. Many document processing companies, such as KlearStack, provide AI processing services at very affordable prices.
Better Decision-Making
We know AI provides 99% accuracy, which means you would get clear data in front of you that will give you a full idea about the situation. So you can make wise decisions for your company that can minimize your chances of failure.
How Can KlearStack Help You in Invoice Processing?
KlearStack is a document processing company. It provides AI-powered tools for better invoice management. You can extract data from various sources, such as ID cards, loan applications, or purchase orders.
It has almost 100 percent accuracy as well. KlearStack has a simple, understandable, and easy-to-use interface, which means you would not need high technical knowledge to use KlearStack. Some of the best features of KlearStack are as follows –
- Template less solution
- AI Supported Processing
- 99% Accuracy
- Multi-lingual Support
- Line-item Data Extraction
- Bulk Purchase Order Processing
- Self- learning Algorithm
- Multi-page Data Extraction
- Seamless Integration with Existing ERP
- Automated Document Splitting
- Document Classification
All these features will solve all your problems regarding invoice management.
Also Read: Best Payroll Software Providers for Your Business: 6 Top Options
Conclusion
From the above discussion, it is clear what AI invoice processing is and how it can help your business. It is a very powerful technology that can help you manage documents. After considering all the points, you should invest in document processing tools for better document management.
Keep one thing in mind: AI is currently at the primary level, but with time, its capabilities and efficiency are only going to increase. Take time to understand your business needs, and then only invest in document processing technology.
You can give KlearStack a try by scheduling a demo.
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