A Guide To Accounts Payable Automation

Who has the time nowadays to review their business logs and write down every transaction? Even students don’t use pen and paper today! They now rely on computerized interactions and ChatGPT – we're talking about automated tasks here! (No, you can’t automate your end-of-semester project!)

Did you know that 64% of companies are willing to make more electronic payments in the next few years? However, even electronic payments have drawbacks such as fraudulent suppliers and identity theft risks. Well, if only you had an automated solution – presenting, Accounts Payable (AP) Automation!

If you're looking for a way to simplify your payments and make life a little easier, AP Automation might just be the way to go. It's like having a fairy godmother of financial technology on your side! #NoReally

So, let’s figure out what AP Automation means.
 

What Is Accounts Payable Automation?

Boring tasks such as receiving invoices, routing for approval, payment and reconciliation can be a real headache – ask any accountant! Well, that’s where tech steps in with Accounts Payable Automation; a technology that’s akin to a magical genie that transforms piles of paper into digital gold! No more paper cuts from receipts, no more inbox clutter from forwarded invoices and definitely no more hand cramps from signing paper checks. With the power of automation, your accounts payable workflows will become faster, leaner and more cost-effective.

AP Automation is a "touchless" processing technology through which you don't even have to lift a finger to input or process data. The software takes care of everything automatically. What’s more is that AP Automation tools don’t just automate the process, they also provide you with cool dashboards, reports and analytical insights to help you manage your accounts payable like a pro. With all your data digitized and stored in one place, you can easily search and audit the information you need. It's like having an X-ray vision of your finances.

So, where did this financial Superman come from? (Not Krypton, for sure!)
 

Where Did Accounts Payable Automation Come From?

Once upon a time, Accounts Payable (AP) departments were buried under piles of paperwork. Invoices and documents were printed out and sent through the internal mail system, causing long delays and a lack of transparency. This manual process was a nightmare for payments teams and companies had to hire more people just to keep up.

In the groovy 1960s, a new technology called Electronic Data Interchange (EDI) appeared on the scene. With EDI, documents could be processed by computers instead of humans, which was totally rad. As technology continued to advance, personal computers became more common in the workplace and e-mail became a major method of document exchange.


In the early 2000s, OCR (optical character recognition) engines arrived and changed the game once again. These amazing engines could read text within digital images allowing companies to capture invoice data electronically and ditch manual data entry. From there, a hybrid approach of manual and digital processes became the norm in AP departments.

However, something truly magical happened: automation for AP transactions entered! Many businesses started automating aspects of their AP process, not only to save costs and increase efficiency but also to drive their overall digital transformation forward.

Look around today, AP Automation has come a long way from paper-based processes. Now, companies can use end-to-end solutions to extract, check, compare and approve invoices with minimal manual intervention. Though, invoices without a purchase order still require some human attention.

From paper to pixels, AP Automation has come a long way! With cutting-edge end-to-end solutions, manual tasks are now a thing of the past. That’s thanks to the awesome features of Accounts Payable Automation - read on!
 

What Are The Features Of Accounts Payable Automation?

While we are talking about Accounts Payable Automation, we cannot skip its features. Here are the ones that you should know:
 

• Receiving And Processing Invoices

  Invoices can either be received electronically or converted from paper to electronic data. This can happen through PDF invoicing, B2B/EDI connections or even via a supplier portal where data flows electronically. Paper invoices are no match for the power of Artificial Intelligence and OCR, which can extract and store invoice data in the cloud faster than you can say "accounts payable".

• Approval Processing

  Once the data has been captured, invoices are either matched to purchase orders and goods receipts or automatically routed to the relevant team or individuals for review and approval. It's like a game of matching pairs but with invoices and purchase orders instead of playing cards. Once approved, the invoices are sent to the ERP tool or accounting system for payment.

• Auditing

  The tool archives all the invoices, so no need to worry about them getting lost. If you need to look back on past invoices, the electronic archival system makes it easy to search and find them anytime from anywhere. Plus, with audit trails of all actions taken on invoices, you'll be the Sherlock Holmes of financial audits in no time!

Now, let’s move on and learn more about why do we need this tool anyway.
 

Why Do We Need Accounts Payable Automation?

Yes, Angela – especially for you!

Let's face it, nobody enjoys manually processing invoices and keeping track of stacks of paperwork. That's where Accounts Payable Automation swoops in to save the day. This superhero technology saves time, eliminates errors and digitizes documents, making AP accessible from anywhere.

With automation, you can say goodbye to tedious, repetitive work and hello to more time for important things like binge-watching your favorite TV shows or practicing your breakdancing moves (as long as your boss doesn’t catch you!). Plus, the risk of human error is reduced to zero since computers are pros at repeating tasks without a single mistake.

Moreover, here's the best part - AP Automation isn't just for the finance team anymore. Other teams can quickly and confidently process purchase orders, cutting down on handholding and freeing up time for them to focus on other tasks. By ditching manual processes and paper filing, your company can streamline operations, increase productivity and save tons of money.

Moving on, are you ready to discover different types of Accounts Payable Automation software?
 

What Are The Types Of Accounts Payable Automation?

There are tons of options out there, each with its own special powers and perks. Check out the awesome types we've rounded up below and get ready to automate your AP processes:
 

• Payment Automation Software

  A payment solution that automates payments, reduces late payments and helps you manage your cash flow like a boss. Cha-ching!

• Accounts Payable Software

  This ultimate all-in-one solution streamlines the entire process – from invoice processing to payments. Say goodbye to manual tasks and hello to increased efficiency and cost savings!

• Supplier Management Software

  The ultimate supplier sidekick that tracks invoices and payments, manages contracts and notifies suppliers of payments and dues. It's like having a personal assistant but for your supplier relationships!

• Electronic Invoice Processing Software

  This awesome solution helps businesses process invoices electronically, saving time, trees and sanity. No more paper cuts or data entry errors.

Alrighty, folks! Now that we got the lowdown on the different flavors of Accounts Payable Automation, let's explore the benefits that come with it!
 

How Does Accounts Payable Automation Benefit Your Business?

You must be wondering what makes Accounts Payable Automation a good solution for your needs. Well, down there are a bunch of advantages that make it a perfect piece of your incomplete puzzle. Read on!
 
Did you know that the Accounts Payable Automation market is growing at an astonishing rate? In 2021, it was valued at a whopping USD 2.3 billion and experts predict that it will continue to grow at a 10% annual rate until 2032! By 2032, this market is expected to reach a staggering USD 6.7 billion! With such explosive growth, it's clear that businesses everywhere are recognizing the numerous benefits of AP Automation and making the choice to invest in this game-changing technology.

Cloud technology will revolutionize the way businesses manage their accounts payable processes. With the ability to access cloud-based systems from virtually anywhere, AP teams will be able to work more efficiently and productively, whether in the office or at the beach. The best part? Companies can save big bucks by relying on automation service providers to manage systems, which means in-house IT specialists can maintain their routines.

With the power of AP Automation, businesses will strengthen their supply chain relations by consistently paying vendors and other collaborators on time. Not only does this help to avoid delays and stress for AP teams but it can also lead to potential discounts from suppliers. How cool is that!
 

Summing It Up

Here we go, another revolutionary business processing system that can improve accuracy and save costs while boosting time efficiency and providing valuable insights. AP Automation is the way of the future. With the rise of cloud technology, instant reporting and improved supply chain relationships are much needed. So, why not take the leap and embrace AP Automation?