AP Automation

AP automation or accounts payable automation is one result of digital transformation and it’s made possible by cloud-based software solutions that digitalize the accounts payable process. The starting point is typically moving from a manual invoice handling process where all tasks are manual, to an electronic process where data entry is reduced, and finally, to an automated process, where tasks are eliminated. With increasing levels of automation, accounts payable teams can focus on more strategic imperatives.

Essentially, AP automation significantly reduces the time and labor involved in paper-based manual accounts payable invoicing, as well as reducing the risk of costly human errors. Better control, increased visibility, and higher efficiency are the goals of accounts payable automation.

Accounts payable is one of the most essential functions in any organization and as such, the team resources should not be wasted on low-value tasks. Your skills and financial knowledge go way beyond filling in spreadsheets and checking whether invoices have been paid. Too many businesses waste time hunting down invoices and using skilled accounting staff on data entry. AP automation puts an end to all of the monotonous “busy work” and frees up financial talent for more strategic work.

With AP Automation, you can modernize your accounts payable process with improved control, better visibility, and increased efficiency. All of these lead to lower transaction costs and cost savings.

AP automation software solutions give you a single environment where you can see every invoice and every payment at any time. This means you can keep better, more accurate tabs on your invoice approval process and any potential bottlenecks to on-time payment.

Visibility into payments and payment automation similarly provide many benefits. Without a doubt, digital payments offer lower costs over payment by check. Digital payments may even become a revenue source if/when payment is made by vCard. Most importantly for your AP team, payment visibility can be given to your suppliers thereby eliminating the likelihood of having to spend time handling supplier inquiries (as much as 25% of an AP manager’s time can be spent taking calls from suppliers).

What does it take to create the efficient, productive, and strategic AP department you want? Best-in-class Accounts Payable departments have digitization champions who are:

Changemakers dedicated to change management

Best-in-class accounts payable teams look at change holistically and strategically to build a roadmap for digital transformation. The first thing they do is recognize a need for modernization. Then they do the research with the goal of building a business case for change and investment. Along the way, they evaluate different technologies and solution providers, identifying what would be most beneficial, both strategically and financially, for the long-term success of the accounts payable department structure and the company as a whole.

Innovators embrace change

Transforming and automating your accounts payable department means taking a hard look at the way it functions. Best-in-class departments are willing to make widespread changes to significantly increase the performance of their teams. As a result, the best AP departments have adopted new processes, supported by new technology. It’s no surprise that best-in-class AP teams are 48% more likely to make electronic payments and 56% more likely to receive e-invoices.

Committed to accounts payable standardization

Best-in-class teams are 52% more likely to standardize accounts payable processes across the company. It sounds basic, but a ton of departments still struggle to manage a standard process for invoice approvals. Whether that’s because the process is paper-based, decentralized, or just old, the outcomes are still the same: little effective control, lost efficiency and process bottlenecks. Because these issues result in high costs and increased risk, organizations all over the world are transitioning to e-invoicing and investing in systems for accounts payable automation.

Customer-centric

Best-in-class accounts payable teams realize the importance of a positive departmental image. They’ve adopted a mentality of collaborating and working positively with both suppliers and internal stakeholders (we see you Procurement). While that may not sound like traditional accounts payable job descriptions, it sets up the team’s groundwork to be a strategic partner to multiple stakeholders across the organization. That plays out in the stats: best-in-class teams are more than twice as likely to use their digital insights to partner with procurement and treasury.