The number of businesses opting for AI has increased by over 240% in the last few years. It is safe to say AI is driving a whole new era of operations, customer experience, and employee engagement for organizations, regardless of their size and industry. With its ability to revolutionize key business aspects, AI has introduced digitalization to organizations.
Billing at invoicing is no exception. AI implementation in core billing processes has helped businesses go beyond invoice generation. They can now generate bills, track payments, identify risk factors and address them, and more. It has opened new realms for businesses to anticipate the problems and proactively take control to curb them.
This is why AI billing software development attracts attention from C-level business executives as a strategic move. If you are one of them, here’s a little help. This blog talks about the top features that can help you ensure you harness the full potential of your investment in AI development.
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- AI billing software helps business track payments in real-time and streamline processes.
- While making the entire process automated enables organizations to improve their operations and reduce risk factors such as fraud, failed transactions, etc.
- Businesses are investing in AI billing software development to ensure they can leverage AI while making sure their systems are extensible. This helps ensure that the existing systems don’t fail due to AI-based counterparts.
Table of Contents
What is Wrong with Traditional Billing Software?
Let’s start with how traditional invoice processing works:
- You receive invoices via fax, post, or email.
- Operators enter the data in systems manually.
- They create the reports themselves and share them further for review and approval.
- Payment is approved.
- Executives log the invoice details, activity reports, and payment details for record keeping.
Now, imagine your business is leveraging this billing model; let’s see what can go wrong here.
Your executives receive this invoice.
Problem 1: There is no way for them to know if the invoice is authentic. If the payment is made to an inauthentic source, you lose financial resources and impact your relationship with the actual business you were supposed to pay.
Problem 2: There is a chance your executives are having a bad day and hence make an error in the manual entry. Even the tiniest mistake can cost you a lot of loss.
Problem 3: This data has to be manually recorded in each software, including CRM and ERP, to ensure data consistency.
Problem 4: If you are the one sending an invoice, there is no way for you to send reminders in a way that doesn’t impact the customer relationship. In addition, you have fewer recovery options if the payment fails for some reason.
Problem 5: Manual reporting and analytics are not reliable.
Why Opt for AI Billing Software Instead of Conventional Systems?
There are a lot of benefits to choosing AI-based systems rather than their traditional counterparts. Here is the gist of them:
- High-end data security
- Extensibility with CRM and ERP systems
- Easy accessibility
- Automation eliminates manual errors
- Next-level data management
- Easily create multiple invoices in minutes
Automated Invoicing and Payment Processing
Automated invoicing refers to the processes wherein buyers can schedule bill payments. It helps streamline the processes to ensure supplier payments are made on time. It seamlessly extracts invoice data and saves the same in ERP systems or account payment software.
Let’s take an example here. Matt is an eCommerce store owner with a lot to manage, including inventory, customers, warehouse, invoicing, etc. He deploys an AI-based billing software that can take customer details from records to enter them into the current one. Once it captures the customer purchases, it raises an invoice for the buyer. This invoice is securely saved to the invoicing software. Once done, the invoice is sent to the customer for payment, and once the payment is made, it generates another invoice confirming the transaction’s success. However, if the price is not completed, it sends regular reminders to ensure customer dues are settled on time.
Easier than traditional methods, isn’t it?
Just like Matt, businesses, regardless of their size and industry, can benefit from AI billing software by:
- Automated receipt generation to avoid manual data entry mistakes.
- Leverage forms for invoice creation to maintain consistency.
- Send/ receive automatic invoices to customers or from suppliers.
- Automate payments every month for suppliers or freelance teams
- Receive regular updates about due invoices
- Securely store the invoices to ensure record tracking for accounting, auditing, and transparency.
Financial frauds are one of the most challenging aspects for businesses. Organizations lose billions due to this. The main causes that lead to financial fraud include:
- Companies don’t have appropriate systems to detect fakes and false invoices
- There is limited visibility into transaction handling and payment apps.
- Platforms fail to verify the supplier before making payments.
- No platform helps safeguard against internal fraud risk.
- Accounts payable fraud detection measures are not effective
- Third-party accounting systems are not extensible
This is exactly what AI billing software helps with. It enables businesses to take a proactive approach to invoice processing. Every time third-party systems raise an invoice, they scan past data to identify trends and patterns. Once done, they thoroughly check for potential risks. They can either reject or stop payments in case any threat is identified.
Businesses can leverage these systems to ensure all fraudulent transactions are proactively detected and reported.
Smart Dunning Management
Subscription commerce is a tricky business. Imagine you are a vendor where customers can sign up for a monthly box of goodies. The customer approved the monthly transaction on January 5. You send away the first box, and the payment is declined when you attempt to charge the customer for the next one on February 5. None of the payment details changed. What to do now? What makes it worse is the customer has no idea until he sees it on his credit card statement.
This is where smart dunning systems come in.
Smart dunning makes payment recoveries easily manageable for businesses. For instance, if you have multiple customers for recurring bill payments, and over 20 of the charges fail due to common issues such as expired credit cards, blocked cards, payment declines due to insufficient funds, etc., it tracks the details. These systems then alert the customers about the same automatically so that payments can be streamlined in a timely fashion. Smart dunning has been proven to help recover over 25% to 50% of the declined transactions.
Smart dunning management allows you to:
- Enable smart retries for failed payments
- Alert about the outstanding dues and declined payments
- Notify customers about payment failure
- Request for customer opt-in so that you can collect updated payment information right from the providers
Analytics and Reporting
AI billing software makes it easier for your business to track its financial health weekly or monthly. A powerful inbuilt reporting system helps pull out reports such as revenue generation over time, A/R aging, and tax summaries in real time. This allows decision-makers to make the right strategic decisions and streamline the processes.
Business billing processes have significantly upgraded with AI. Unlike traditional manual and excel-based methods, these disruptive systems help businesses garner all reports promptly and manage invoices more efficiently. They offer a high level of security to the companies to ensure their money is safe and their customers can feel secure while making any transactions with their organization.
AI-drive billing and invoicing drives businesses toward better revenue generation systems guided by real-time data. It is also helping companies to take control of their business transactions and accelerate the payment processes. The conclusion is clear; organizations are shifting toward powerful AI solutions to get valuable insights, drive better financial decision-making, and analyze the loopholes to eliminate them.
As an AI development company, Matellio helps businesses take the right approach to AI development in billing processes. With skilled teams who understand the markets and technology mix, we invest time in identifying the potential problem areas and organizational goals/ challenges. This helps us create the right digital transformation strategy tailored for your business.
We are proud of the extensive range of services we offer that include:
- Readiness assessment
- Wide AI development services range under a single roof
- Industry-specific AI development services
- Decades of experience working with businesses of various scales
- Global team presence
- CMMI certified experts
And a lot more. Let’s help you feel the best digital transformation experience. Share your requirements to get started.
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