Intelligent Automation is a technology designed specifically for the financial and accounting industry. It allows the automation of accounting processes such as processing and handling invoices and other documents. In this article we will show you what the automation of accounting processes is, what benefits can be achieved through it in the company and how to automatically read data from invoices and transfer them to accounting systems.
Table of contents
- Intelligent Automation in the accounting industry
- The essence of automation of accounting processes: invoice processing and integration with accounting systems
- Benefits related to the automation of accounting processes in the enterprise
- Advantages of Intelligent Automation over OCR
Intelligent Automation in the accounting industry
Intelligent Automation of business processes is gaining more and more popularity around the world. Its applications can be found in virtually every industry, regardless of whether we are looking for solutions in the field of finance, production or medicine. It also found its place in accounting, and more specifically in the automation of accounting processes.
We hear more and more about automation in accounting, but it is used primarily in large enterprises. Only about 4% of small and medium-sized enterprises automate their processes. This is because automation is not a priority for smaller companies that focus on other important aspects of their business.
Nevertheless, the technology definitely meets the needs of accountants and accounting offices, whose activities ask for automation. Automation is desirable above all for repetitive, monotonous activities, which are abundant in accounting and which can be found both in large enterprises and smaller, developing companies.
This is confirmed by a study conducted by Sage, in which the respondents found manual processes for handling financial documents worth automating. The responses included financial reports, data entry, customer service and invoice handling, which received as much as 31%.
The essence of automation of accounting processes: invoice processing and integration with accounting systems
Intelligent Automation deals with the processing of all types of invoices, of which the average enterprise receives hundreds or even thousands. Regardless of where invoices come from – whether they are sent to the company by e-mail, are placed in the cloud, or maybe in paper form – Intelligent Automation can handle them. The same versatility applies to the format – PDF, PNG or JPG – it does not matter to the technology.
After uploading and reading the invoice, Intelligent Automation extracts information, so selects the necessary data from it and saves it in a structured form: a table or a list.
In addition to such basic functionalities, Intelligent Automation also enables data correction and improvement of the Artificial Intelligence model over time in order to obtain better and better results.
More importantly, Intelligent Automation integrates with the most popular accounting systems on the market and enables the export of results to virtually all accounting programs. In this form, Intelligent Automation becomes an indispensable tool that definitely facilitates the work of accounting.
Let’s summarize: the essence of Intelligent Automation is to read data from invoices and then put them automatically in any accounting system. That helps to save up to 90% of working time.
Benefits related to the automation of accounting processes in the enterprise
The automation of accounting processes brings benefits primarily to enterprises. Thanks to the automation of accounting processes, offices and accounting departments can save up to 90% of their work time and minimize costs by up to 90%.
However, not only enterprises and individual departments benefit, but also the accounting staff themselves. Automating processes relieves accountants from the tedious, monotonous tasks that robots do for them.
Alphamoon conducted its own study which found that 97% of companies use their employees to extract data from invoices instead of investing in automation technology. An average accounting office processes approximately 2,000 documents per month. Imagine that this could happen automatically, allowing employees to focus on other, less mechanical activities that do not require special knowledge or human intervention.
You can read more about the benefits achieved by the company in connection with the implementation of Intelligent Automation in our article entitled “Intelligent Automation: what it is and how it helps companies in digital transformation.”
Advantages of Intelligent Automation over OCR
The automation of accounting processes began with the introduction of Optical Character Recognition (OCR) to the market. At first glance, this technology is not much different from Intelligent Automation. Yet, there are significant differences that you need to be aware of.
OCR is a technology that transforms the data in a photo into text data. However, it is not as advanced as Intelligent Automation. Although it reads text data, it cannot understand the context of the information. For example, when OCR reads the date, it cannot identify it, so it does not know that it is the date. Intelligent Automation, in turn, can properly classify the read data.
Most OCRs can’t handle poor quality documents. There is no denying that customers often send scans or photos from the phone that OCR cannot read accurately. In such cases, Intelligent Automation achieves much better results than OCR.
OCR will not inform us of a possible error, which means that we cannot be sure of the quality of the solution. Intelligent Automation verifies the correctness of the information, thanks to which we are sure that the approved information is correct.
OCR also has a certain effectiveness that it achieves. It is not possible to develop it, so it remains constantly at the same level. Intelligent Automation not only guarantees a minimum level of effectiveness, but gets better with every human correction.
Intelligent Automation fully meets the needs of accountants and accounting offices. The technology enables automatic processing of all types of invoices and, thanks to the integration with the most popular accounting systems on the market, the export of results to a selected accounting program. More importantly, it has many advantages over OCR, which lags behind and does not keep up with the latest technologies.
The automation of accounting processes allows to save up to 90% of working time and minimize costs by 90%, thanks to which it relieves accountants from tedious, monotonous tasks that are now performed by robots for them.
If you want to learn more about the automatic processing of invoices and other documents in the enterprise, check out our Alphamoon Invoices Automation platform, which, thanks to continuous training, can achieve up to 99% efficiency.