Today, important activities are still manual driven which can lead to ineffective decision making. Most of the organization run through various manual tasks which deal in critical decision making. For example, paying vendors and employee reimbursements on time are crucial since they carry reputational risk to the firm. Hence, firms are required to dig deeper to understand the spend pattern, which helps the top-level management in decision making.
Newer technologies in the artificial intelligence domain enable digitalization that makes the manual process seamless with reduced chances of error. With AI capabilities, the duration of reimbursements/payment cycle gets reduced and it enhances better user experience for your employees and vendors.
Importance of AI in Auditing
Today we have many data sets applications, which adapt to the in-house expense policies. AI helps in analyzing the expenses and categorizing the level of risk involved. This helps the organizations in reducing the workload on finance teams, automating spend approvals and providing better insights. It reduces the risk associated with expenses, complies with policies and simplifies the whole expense auditing process.
Scope of AI powered Auditing
The AI powered software strengthens the controls & compliances by applying an inhouse expense policy. It is proficient in auditing 100% of T&E (Travel & Expense/Entertainment) reports instantly. Such software helps in benchmarking to improve the policies, audit process and spend analysis, thereby empowering organization to control the spend in an effective manner.
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How to solve Travel and Expense Management challenges
To help you understand better, let us take you through the thought process:
The application reads every line of data in the receipt images provided in expense report and analyze that with the card data received from banks / financial institutions to spot the duplicates, trigger fraud transactions and categorize risk associated spend that are violating the expense policies.
AI-powered expense audit solution doesn’t require changes to organizations back-end system, as it integrates with the existing expense management system and ERP for seamless experience.
Some of the key benefits of integrating such applications are as below:
(1) AUTO CATEGORIZATION OF EXPENSES
(2) BETTER CONTROLS ON SPEND
One of the key strengths of AI powered tool is that they can eliminate manual errors, identify fraud payments and increase the quality of audit thereby helping the organizations eliminate excess spends and strengthen the controls.
(3) RE-INFORCEMENT OF EXPENSE APPROVALS
With the fast-paced changing business dynamics, the lack of quality audit and long approval timelines may hamper the business and cause irreparable damage to the brand. The AI powered auditing tool will make seamless approvals with little intervention from the Finance team as needed and thereby reducing the turnaround time for the expense payments.
Here’s your takeaway!
Organizations must ponder the use of AI in auditing, with an appreciation of the technology’s limitations. The features we’ve discussed above help in reducing cost and manual intervention while increasing visibility. Nowadays, the challenge for business leaders is new technology adoption to enhance cost control and effectively use their spend visibility in crucial business decision making. The traditional method of processing the volume-based queue is inadequate to manage the current demand especially when there are high volumes. Hyper business growth may sometimes decline the organization’s spend discipline and they are crucial for the reasons already discussed. It is always suggested to add better controls by bringing the effectiveness of AI powered tools. Such tools empower the top management by providing them with the spend patterns to aid in better decision making. To sum it up, AI falls short of nothing in boosting your travel & expense management processes.
If you are interested in learning more about AI powered auditing solutions in the T&E domain while making the system compliant with the organizational policies, please drop a note at [email protected]
