What is Invoice Processing Automation?
Optical character recognition (OCR), is software that identifies and extracts text from documents and images, allowing them to be understood and processed by a computer. OCR has existed for a while already, but is only recently being expanded into broader data capture technology. Accurate OCR and/or data capture technology is a key component of almost any business process automation (BPA) system, which are being used across nearly every industry, to automate all types of departments and processes.
Invoice Processing Automation
Among the most commonly automated processes is invoice processing. Invoice processing automation allows bots to fully process, approve, pay, and record each invoice. Advanced automation solutions can accurately process even ambiguous or low-resolution invoices by referencing vendor histories and using computer vision techniques to extract or fill in missing information.
How is Invoice Processing Automation Useful?
Invoice processing is completely rule-based and usually very simple. Large organizations, however, can process thousands of invoices per month. This effort can cost them anywhere from a few dollars per invoice to as much as $40.
Automating invoice processing can, therefore, save time, cut expenses and reduce the error-rate. Use of automated bots to handle invoices allows valuable man-hours to be reallocated for more complicated or creative tasks. This allows employees to accomplish more in the same amount of time. Reducing the usual processing time and error rate results in vendors being paid faster and avoid time-consuming mistakes, leaving both parties more satisfied with each transaction.