Invoice processing can be a major drain on resources for finance and accounts payable teams, especially when dealing with invoices that don’t conform to a standard template. Manually keying in data from these non-standard documents is time-consuming, prone to error, and prevents valuable staff from focusing on more strategic tasks. However, the latest technologies, particularly automated data capture, are a transformative solution for non-standard invoices. ADT accomplishes this by intelligently extracting, validating, and routing invoice data, no matter the format.
The Pain of Non-Standard Invoices
Traditional invoice processing often relies on OCR technology, which works well for standard, templated invoices. However, many businesses deal with a wide variety of invoice formats from different vendors. This creates significant problems:
- Inconsistent layouts: Invoices come in all shapes and sizes, with key information placed in different locations. A traditional system might not be able to find the invoice number or total if it’s not where it “expects” it to be.
- Complex data requirements: Some industries require more than just the basics. You might need to capture specific line-item details, project codes, tax IDs, or other custom information that isn’t standard.
- Human-in-the-loop bottlenecks: When an invoice doesn’t fit the template, a human has to manually key in the data. This slows down the entire process, creates a backlog, and is prone to human error.
Automated Data Capture
Automated data capture systems use advanced technology to go beyond simple OCR. They leverage AI and machine learning to understand the context of an invoice, allowing them to extract data with remarkable accuracy, even from non-standard documents. This technology fundamentally changes the invoice processing workflow.
Intelligent Data Extraction
Instead of relying on templates, modern automated data capture systems use cognitive capture to identify and extract data. They are “smart” enough to understand what an invoice number is, even if the label for it is “Ref. No.” or “Invoice ID” and it’s located in a different spot on every document. This is achieved through machine learning, where the system is trained on thousands of different invoice types to recognize the patterns and context of various data fields.
Automated Data Validation
After the data is extracted, the system doesn’t just stop there. It automatically validates the information against your company’s existing data. For example, it can check if the vendor name matches an approved vendor in your system or if the purchase order number exists and is open.
Furthermore, automated systems can enrich the data by automatically applying business logic. For instance, based on a vendor’s name or a specific line item, the system can automatically assign the correct GL code, reducing the need for manual coding. This ensures that the data is not only captured accurately but is also ready for immediate posting in your accounting system.
Seamless Integration and Automation
The final, and most crucial, step is the seamless integration of this technology with your existing ERP or accounting software. Once an invoice is captured, validated, and enriched, the data is automatically fed into your system. This eliminates manual data entry, speeds up the approval process, and provides real-time visibility into your accounts payable status.
By implementing an automated data capture solution, businesses can drastically reduce the time spent on manual keying, minimize human error, and free up their team to focus on strategic analysis and financial management. It’s a key step in transforming the accounts payable department from a cost center into a valuable, efficient part of the organization.
Learn More
At ICG, we helped a client transform their invoice processing into an efficient, automated workflow. By implementing our advanced data capture solution, they were able to reduce invoice processing time, eliminate manual data entry errors, and free up their team to focus on strategic financial analysis.
If you’re ready to leave behind the frustrations of non-standard invoices and embrace the power of intelligent automation, it’s time to see what’s possible. Schedule a free demo with ICG today and discover how we can help you streamline your accounts payable, increase accuracy, and save valuable time.