How to automate invoice coding: A practical AP guide

Automating invoice coding is crucial for financial reporting, budgeting, and decision-making. Manual processes can cost up to $6.30 per invoice, while automation can save nearly 77%. Accurate coding ensures compliance with financial regulations and prevents errors that can lead to skewed financial data. The standard process involves receiving invoices, extracting key information, assigning GL codes, validating matching, routing for approval, and posting to the accounting system. Automation software uses AI, OCR, and workflow automation to streamline this process, offering features like automatic code assignment, validation, and approval routing. By implementing invoice coding automation, companies can transform their AP department into a strategic asset, reducing errors, freeing up time, and paving the way for better financial decision-making and improved cash flow management.