CFOs Reveal Top 10 Benefits of Invoice Automation

AI invoice automation delivers substantial benefits like improved accuracy, faster processing speeds, and better fraud detection. How can you reap these benefits for your business?

In this article, we will hear from CFOs on how AI automation benefits their businesses. We will explore the top 10 benefits of AI invoice management identified by CFOs and provide tips on how to achieve those benefits for your business.

Let’s dive in.

What is AI invoice automation?

Digital transformation has changed finance.

In Deloitte’s Q4 2023 CFO Signals report, just over three-quarters of CFOs said they expect digital transformation and technology to play a greater role in their business. Moreover, 80% will embed more automation and digital technologies into financial operations in 2024. Accounts payable automation solutions are at the forefront of this evolution.

AI invoice automation uses artificial intelligence algorithms, natural language processing, and machine learning to optimize the invoice lifecycle. It replaces manual tasks and digitizes and centralizes invoice data to achieve two goals:

• Reduce invoice processing time and improve invoice processing accuracy to prevent errors and fraud. 
• Provide accurate real-time transaction data and share it with ERPs and accounting systems.

What makes a good invoice management solution?

Leading invoice processing software solutions have a people-first philosophy. They simplify complex processes and make them intuitive for employees. They also provide timely, actionable data and insights to help leaders make informed decisions. 

These solutions stand out from the rest by excelling at six criteria:

• Collaboration and communications: One place for all your internal and vendor communications, documentation, and workflows.
• Invoice automation: The solution assists you across the entire invoice process. 
• Fast time to value: The solution deploys in days rather than months.
• ERP integration: The solution supports native ERP functionality with no need to reconfigure your ERP.
• Keep humans in control: The solution enforces human validation of AI decisions.
• More than just AP: The solution offers integrated payments, credit cards, vendor management, and more.

Choosing a solution that delivers on these promises will help you achieve the benefits of AI invoice automation for your business.

The top 10 benefits of invoice automation

Stampli and Probolsky Research surveyed CFOs, controllers, and senior-level finance leaders to get their thoughts on AI in accounts payable. The survey identified 10 key benefits leaders see from using invoice automation in their accounting departments.

1. Improving accuracy

Automated invoice processing replaces tasks like manual data entry and invoice coding, reducing the chances of human error. It also automatically performs three-way invoice matching, detecting and flagging any mistakes. According to the American Productivity and Quality Center (APQC), replacing manual invoice processing can reduce the rate of erroneous or duplicate payments per year from 2% down to 0.8%.

2. Improving processing speeds

By replacing time-consuming manual processes, invoice automation significantly improves processing speeds – reducing late payments and improving cash flow management. For example, CTI Clinical Trial & Consulting Services were manually processing 600 invoices per month. After switching to paperless invoice processing with Stampli, they saw a 40% increase in AP productivity.

3. Deeper/faster data analysis

Invoice automation software provides accurate, real-time data to give you visibility and control over the accounts payable process. Using tools such as AP reports and visual dashboards, you can view, analyze, and forecast KPIs and actionable metrics such as DPO, invoice lifecycle, and aging reports. 

Learn how Wenspok Companies partnered with Stampli to implement strategic cash flow management and improve decision-making across 67 Wendy’s restaurants.

4. Improving financial system efficiency

AI automation directly improves financial system efficiency by optimizing invoice management workflows. It also provides finance leaders with actionable insights they can use to improve working capital management and make performance improvements. 

For instance, the Miami Downtown Development Authority was taking over a month and a half to pay vendors. They were concerned the delay was causing vendors to leave — something they could ill afford with a three to six month onboarding process for new suppliers. After switching to Stampli, they were processing invoices in two weeks and could pay vendors on time.

5. Cost reduction

Implementing AI invoice automation significantly reduces direct costs. For example, automation can reduce the average labor cost of processing an invoice from $7.75 per invoice to approximately $2.00.

Automation also reduces indirect costs such as late payment fees, losses from fraud and errors, and regulatory fines.

6. Refocusing humans on more valuable tasks

In Deloitte’s Q4 2023 CFO Signals report, 81% of CFOs said they will use automation and digital technologies to free people to use their talents for higher-value activities. By automating tedious, repetitive tasks, invoice automation lets you redeploy AP employees on more strategic tasks like identifying savings opportunities and cash flow management.

7. Faster access to knowledge/data

Invoice automation platforms integrate with ERPs, finance systems, and accounting software to synchronize and share real-time transaction data across the entire organization. Sharing actionable and accurate information enables companies to make informed decisions, perform audits, and manage working capital faster.

8. Improved fraud detection

According to the Association for Financial Professionals, 65% of organizations were victims of payment fraud attacks or attempts in 2022. AI invoice automation detects subtle signs of fraud that human reviewers may miss – reducing the risk you’ll inadvertently sign off on a fraudulent invoice.

9. Grow business without adding AP headcount

Implementing AI invoice automation improves the productivity of accounting team members, reducing the need to add extra headcount as your business and invoice volume grow. For example, after partnering with Stampli, Becker Studio Construction realized 4x ROI because they didn’t need to hire additional AP staff. 

10. Uncovering new opportunities

The role of the CFO is changing. In What’s Important to CFOs in 2024, PWC reported that 43% of CFOs said establishing finance as a partner to the business is one of the top three priorities for the finance function. AI invoice automation provides CFOs with strategic insights to help their companies uncover opportunities for revenue growth, cost savings, and M&A strategy. 

Stampli: the industry leader in AI invoice automation

Stampli makes AP simpler and more powerful thanks to Billy the Bot, the only AP AI assistant that adapts to your existing processes and doesn’t require rework of your ERP.

The only Accounts Payable Automation solution specifically designed to meet the unique needs of AP, Stampli optimizes invoice management by eliminating the need for external communication, ad-hoc workarounds, and manual tasks. It provides complete visibility into every transaction, ensuring accurate and fast invoice processing.

With Stampli, you’ll immediately see the impact of AI invoice automation on your bottom line – most Stampli customers see ROI in matter of weeks.

Recognized by AP professionals for ease of use, relationships, implementation, and getting results, Stampli is the natural choice for CFOs looking to find cost savings and lead innovation and transformation.

Contact Stampi today to set up a free demo.