AR Automation or Accounts Receivable Automation is the process of automating the capture, validation, conversion and release of data your outgoing/incoming Purchase Orders into your accounting system.
With AR Automation, the exchange of documents can occur in electronic or hardcopy format.
With Accounts Receivable Automation, any company dealing with large amounts of purchases can essentially reduce overheads by automating the data capture, extraction and conversion process
How does Accounts Receivable Automation work?
The process flow
AR Automation eliminates manual data extraction and conversion which leads to double handling of data entry.
With this advanced technology, AR Automation extracts the document areas that are required for your records and converts them into your accounting systems preferred format.
4 Data Capture Steps
AR Automation provider accepts both hardcopy and digital invoices.
Once received, invoices are scanned digitally and converted utilising OCR technology.
Once converted to a digital equivalent, invoices go through the validation process to check for errors. Alternatively, the provider can also implement a 2 step verification process to ensure accuracy further.
Once the data is ready to go, it will be released to you either via EDI or an upload file. Data delivery is dependent on your current ERP system capabilities.
Benefits of AR Automation
From implementing AR Automation, we have helped many companies add value to their organisation by automatically processing and converting vital accounting information, reducing clerical tasks and eliminating data entry errors.
Using Accounts Receivable Automation, you will
No more data entry and extraction of information
Take advantage of on-time payment discounts
Faster data extraction leads to faster payment and on-time payments
Less administrative work
Significantly lesser admin work as there is no more data entry
Faster payment cycles ensure that your cash flow is enhanced
Fewer admin team members required
Enhanced vendor relationships
Vendors are happier with fewer errors and faster payment
Increased staff satisfaction as they are not completing repetitive tasks
Increased visibility into your payment process
Enhanced overview of your payments as they are taking less time to complete