The process of paying an invoice is a routine yet crucial aspect of business operations. Ensuring timely and accurate payments not only maintains healthy supplier relationships but also reflects on a company's reliability and financial health. This guide will walk you through the traditional method of invoice payments, its downsides, and how Kloo simplifies the entire process.
The Traditional Process
In the conventional approach, invoice payment involves several manual steps. First, an invoice is received, verified for accuracy, and then processed for payment. Often, this requires manual data entry into accounting systems, paper checks to be written, or online banking details to be painstakingly entered.
This method can be fraught with delays and inefficiencies. For instance, the UK government's Payment Practices Reports show that among the five biggest retailers in the UK, 25% of invoices take 61 days or more to be paid. This lag not only strains supplier relationships but also impacts cash flow and financial forecasting.
Processing an Invoice with Kloo
Before an invoice can be paid, it must be properly processed. Kloo simplifies this with its cutting-edge use of Optical Character Recognition (OCR) and Artificial Intelligence (AI). Here's how:
- OCR and AI Integration: Kloo utilises OCR to extract data from invoices, which is then further refined by AI. This tandem work ensures a high level of accuracy in capturing invoice details.
- Autonomous Workflow: By integrating AI, Kloo transcends typical rule-based automation. It intelligently handles exceptions and complex scenarios, significantly reducing the need for human intervention and streamlining the AP process.
- Intelligent Invoice Matching: After OCR extracts the data, Kloo’s AI processes it to match invoices with purchase orders accurately. This even applies to cases where the invoice and PO display variations in supplier names, showcasing the platform’s attention to detail and context-based reasoning.
Paying an Invoice with Kloo
Once processed, the next step is the payment of the invoice. Kloo's payment features include:
- Streamlined Payment Process: Automate payment scheduling and execution, reducing manual work and human error.
- Off-Platform Email Approvals: Approve payments swiftly via email, expediting the payment process and ensuring no invoice is left unpaid for long.
- Cross Border Payments: Execute rapid, low-cost, and transparent international payments without traditional banking delays.
- Multiple Currency Wallets: Manage and execute payments in different currencies, a boon for international business dealings.
Key Takeaways
Navigating the traditional invoice payment process can be cumbersome, often leading to significant delays as reflected in the statistic that a quarter of invoices among major UK retailers take over two months to be paid.
With Kloo, businesses can overcome these challenges and ensure that invoices are paid promptly and efficiently. Kloo’s suite of payment features is designed to streamline the payment process, from automated approvals to instant payments, all the while ensuring that businesses can maintain favourable terms with their suppliers.
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