By reducing the need for manual effort, AP automation can drive down your processing costs.
Some involve a tangible and rapid return on investment. By customizing rules for your business, such as acceptable variances or approval hierarchies, you may be able to eliminate the need for manual intervention for most invoices. Some products use machine learning to recognize patterns over time and improve accuracy for example, they may suggest specific general ledger codes or approval routing based on past experience.
Payable automation software#
How Does Accounts Payable Automation Work?ĪP automation software converts your suppliers’ invoices into a standard digital format and then pushes them through a digital workflow that culminates with paying suppliers.Īt the start of this process, AP automation uses optical character recognition (OCR) to extract information from invoices. Because all accounts payable data is digitized and stored within a single system, it’s easier to search for and audit the information. You may come across the term “touchless” processing, which generally means that AP automation eliminates the need to manually input data at any stage, although approvers may still need to sign off on payments with a mouse click.ĪP automation software typically also provides dashboards and analytic tools that that help you manage the AP process and diagnose problems. What Is Accounts Payable Automation (AP Automation)?ĪP automation technology automates routine steps such as receiving invoices, coding, routing for approval, payment and reconciliation. By eliminating manual processes and stacks of paper, AP automation can improve your relationships with suppliers and partners while saving time and money, reduce days sales outstanding (DSO), thus improving cash flow. Working through piles of paper invoices, individually contacting relevant approvers and mailing checks is not only slow, it opens the company up to fraud and makes audits painful.Īccounts payable automation (AP automation) technology aims to provide a more efficient, expeditious and accurate way to handle this back-end financial process. East, Nordics and Other Regions (opens in new tab)Īs most finance teams know all too well, a manual accounts payable process can be tedious and error-prone.
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