Let’s start by looking at the myriad of finance processes where AI-driven automation can be implemented to revolutionize the overall accounting and finance operations of an enterprise!
Billing and Collections
Let’s start by looking at the myriad of finance processes where AI-driven automation can be implemented to revolutionize the overall accounting and finance operations of an enterprise!
Billing and Collections
Here’s some information—credit insurance firm Atradius conducted a study that found that payment delays were a major concern for companies around the world. On average, 41% of companies in the region reported a deterioration in customer payment practices in the past year (US: 47%; Mexico: 44%; Canada: 32%). Payment delays affected 47% of the total value of B2B loan sales (US: 50%; Mexico: 45%, Canada 48%). USMCA (United States, Mexico, and Canada Agreement) companies registered 6% of invoices as questionable (US: 8%, Mexico: 5%, Canada 5%).
AI-led automation tools in finance and accounting enable the simplification of multiple tasks and enhances precision. By utilizing machine learning algorithms to study previous payment trends, businesses can determine the probability of late payments and prioritize their collections operations accordingly. AI in accounts payable enables enterprises to take preventative measures, reducing payment delays and optimizing their cash flow.
Reconciliation
Reconciliation involves comparing financial records to identify discrepancies or errors and has traditionally been a laborious and time-consuming process. However, machine learning algorithms within AI tools are used to automate the process, making it faster and more efficient. These algorithms are capable of analyzing vast amounts of financial data with precision and accuracy, identifying discrepancies or errors that may have been overlooked in the traditional manual process.
According to a McKinsey Global Institute report, AI can reduce matching time by up to 90% while improving accuracy. This is especially important for businesses with high transaction volumes, such as finance or retail. Moreover, automation in finance and accounting along with the reconciliation process allows for greater efficiency, freeing up valuable time and resources that can be utilized in other areas of the business. This, in turn, leads to increased productivity, reduced costs, and ultimately, higher profits.
Financial Reporting
The integration of AI-powered automation is transforming the accounting and finance reporting landscape, allowing businesses to streamline reporting-related activities and significantly improve the accuracy level of financial reports, leading to increased trustworthiness of reported information.