Irrespective of their types and sizes, enterprises have to deal with accounts payable (AP) as part of their business operations. More and more businesses are embracing or at least contemplating a transition to AP automation systems to manage their accounts payable process. If electronic invoice processing and embedded workflow solutions are the two pillars of AP automation, data capture system is the backbone of e-invoice systems.
AP Data Capture System Explained
In a paper world, invoice processing involves tedious and error-prone data entry. Accounts Payable Data Capture system takes the pain out of the entire process. E-invoicing does not only accelerate the AP processing, but also helps companies save considerable amount of time and money while increasing the accuracy of their accounts payable process. E-invoicing relies heavily on the system of automated data capturing. By eliminating error-prone, time-consuming manual data entry, it helps save as much as 75 percent of the time spent on paper invoice processing.
Additionally, AP Data Capture system also speeds up the approval process for payments. The system sends out billing data to the proper people. Coupled with a workflow solution, it also sends reminders about pending transactions to the concerned people..
AP Data Capture and Optical Character Recognition (OCR) Technology
AP Data Capture systems are closely associated with OCR technology. An OCR software converts scanned files into computer readable formats and can even interpret machine-printed text on scanned images. The idea is to reduce the amount of time the Accounts department spends in manually entering invoice data into the company systems. When compared to conventional methods, an automated OCR system can save as much as 75 percent of time. But that’s not all – the use of a sophisticated data capture system leads to fewer errors, reduced costs, and an improved visibility.
Given the many benefits of AP data capture system, more and more companies are switching from conventional paper-based accounts management processes to dynamic AP automation systems that rely heavily on sophisticated technologies such as e-invoicing, integrated workflow and OCR. If you are looking forward to increase the efficiency of your accounts payable processes, we can help. Visit our website for more information on how our AP automation solution works.