How to Build a Zero-Touch Accounting Flow in Dynamics 365 Using AI and OCR?

Finance teams have to deal with problems only they know too well: stacks of paper invoices, entering data by hand, and long delays in getting approvals. These tasks that have to be done over and over again slow things down, make mistakes, and keep your team stuck in admin work.

But what if you could make a zero-touch accounting flow in Dynamics 365 that scans, approves, matches, and posts invoices almost by itself?

AI-powered accounting in Dynamics 365, which uses OCR and smart automation, promises to do that. Let's look at how intelligent document processing and automated workflows can turn your accounts payable process into something that works almost on its own.

What Is Zero-Touch Accounting?

Zero-touch accounting means your system handles most steps, from receiving an invoice to posting it, without human help. In a typical workflow:

• OCR reads vendor invoices automatically
• AI matches invoices to purchase orders
• Workflow rules route them for approval
• Finally, invoices post to your ledger and payment schedule

This kind of setup is now possible using Dynamics 365 accounting automation tools like AI Builder and cloud flows.

Why It Matters: Bigger Impact Than You Think

Switching to AI-powered accounting in Dynamics 365 isn’t just about speed—it’s about control.

• Lower error rates: Manual entry mistakes can cost 1–5% of your invoice value. Automation cuts that drastically.
• Faster processing: Studies show that companies using OCR process invoices 25–60% more than those relying on manual entry.
• Real-world ROI: One company processed 12,200 invoices in a year and saved over $440,000 just from moving to zero-touch AP in Dynamics 365.

Moving to a paperless accounting workflow doesn’t just save admin costs but also frees your team to focus on analysis, risk, and decision-making.

Step-by-Step: Building Your Zero-Touch Flow

1. Digitize Invoices with OCR in Dynamics 365

Start by getting all invoice info out of PDFs or scans and into data fields.

• Microsoft’s built-in Invoice Capture uses Azure Form Recognizer to extract key fields like vendor, date, totals, and line items.
• With Dynamics 365 OCR integration, each scanned invoice gets converted into digital data.

The system learns to improve accuracy for your regular vendors over time.

2. Automated Matching & Validation

Once data is captured, your system should check:

• Does each invoice match a purchase order?
• Are quantities and prices within set tolerance levels?

Dynamics 365 can do two-way or three-way matching automatically. If everything lines up, the invoice gets pre-approved without human checks.

This is true invoice automation with OCR, saving hours of manual validation.

3. Auto-Approval Routing

Not all invoices are perfect. When mismatches happen:

• Dynamics uses rules (e.g., invoice value, vendor type) to send invoices to the right approver.
• Approvers get notified via email or Teams and can act with a single click.

No more lost email chains or approval bottlenecks—just clear, automated routing.

4. Seamless Posting to the Ledger

Once approved, the system posts the invoice directly to your general ledger, with correct codes, cost centres, and tax entries.

This step closes the loop, creating a paperless accounting workflow with full traceability from invoice to ledger.

5. AI-Powered Reconciliation & Insights

Why stop at approvals? AI can further enhance your process:

• Duplicate detection: AI spots invoices submitted more than once.
• Discrepancy alerts: It flags unusual price or quantity changes.
• Cash forecasting: AI predicts upcoming cash needs based on AR and AP trends.

This layer of AI in financial operations turns your finance team into early-warning and forecasting powerhouses.

In-Depth Insights & Industry Data

ROI You Can Measure

AI-powered invoice automation in Dynamics 365 leads to real savings. One Avantiico case showed a business saving $440K annually by automating over 12,000 invoices. Tools like AI Builder and Invoice Capture reduce errors and manual work, improving accuracy and compliance. Research from PairSoft estimates a 10× ROI within the first year of AP automation.

High Touchless Rates Are Possible

Large organizations report 80–90% touchless invoice processing when using Dynamics 365. This means invoices are scanned, matched, approved, and posted automatically, without human input. These workflows reduce delays, speed up closings, and lower error rates by combining rules, AI, and smart routing.

Leading OCR & RPA Tech

Microsoft’s prebuilt invoice model in AI Builder uses Azure AI to extract invoice data accurately. Advanced setups combine multiple OCR engines to reach 99% accuracy, especially with formats like XML or EDI. RPA handles repetitive tasks like data entry, updates, and notifications, completing the automation loop when integrated with Power Automate.

What You’ll Need to Make It Work

Real Example: Continia + Business Central

Continia offers an AI-powered invoice automation solution that integrates directly with Dynamics 365 Business Central. This plug-and-play setup improves the whole AP process from invoice capture to posting:

• Supports multiple formats including scanned documents, PDFs, XML, and e-invoice networks like Peppol and EDI
• Continia Document Capture automatically extracts and validates invoice data with OCR, streamlining your document workflow
• Automated posting suggestions based on your chart of accounts, improving coding accuracy
• Tight integration with Business Central ensures all processes—from approval to ledger posting—happen within a single system
• Advanced Expense Management tools support receipt scanning, approval, and automated reimbursement for employee expenses

This solution goes beyond basic OCR—Continia brings end-to-end invoice automation, helping companies truly achieve a zero-touch accounting flow inside Business Central.

Final Thoughts: Why This Is Important for CFOs

CFOs today have to do more with less, keep operations running smoothly, cut costs, and be ready for an audit. This is why AI-driven accounting is not only a good idea but also a smart investment.

Automation reduces manual errors, which improves reporting accuracy and lowers the risk of costly mistakes. Faster invoice processing also means fewer late fees and more chances to grab early payment discounts—direct wins for cash flow.

It’s not just about saving time. When finance teams aren’t buried in data entry or chasing approvals, they can shift focus to forecasting, strategy, and finding ways to boost margins.

Zero-touch accounting also makes it easier for CFOs to see what's going on. You are always in control and can deal with problems before they become problems thanks to real-time dashboards and automated audit trails.

At the end of the day, Dynamics 365 with AI and OCR is a much better way to scale your finance operations without increasing workload or overhead. This isn’t any trick, but it’s ROI-backed, research-proven finance improvement.

Want to move toward zero-touch accounting?

Let Dynamics Square help you set up smart workflows with OCR and AI in Dynamics 365, so your team can focus less on data entry and more on operations that really matter.