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Accounts Payable Automation Best Practices

Accounts Payable Automation refers to automation, that is used to update and automate accounts payable processes and workflows. It also helps remove manual tasks and provides better visibility and control over essential financial data.

Accounts Payable Automation can save time and money while protecting your business from a costly error. In almost all cases, automation makes life easier. But it is still an investment, although one that can often pay for itself.

Accounts payable automation becomes essential, particularly for companies making business-to-business payments. The accounts payable process serves as the key record of the funds to be paid for goods or services that have been received already.

In this article, you will find six proven best practices for accounts payable automation. These practices if executed properly can dramatically increase efficiency, improve compliance, and boost productivity for your Accounts department.

Table of Contents
Accounts Payable Automation.
7 Best Practices that Impact Accounts Payable Automation.
Benefits of Accounts Payable Automation.
How Does Account Payable Automation Work?
Interesting Automated Accounts Payable tools.
Why Automate Account Payable?

Account Payable

What is Accounts Payable Automation?

Accounts Payable Automation is a technology that shifts the burden of tedious work. It shifts that burden usually manual accounts payable tasks from accounting professionals to software automation.

AP Automation is a set of tools and procedures to automate the everyday things that your finance team does manually. Usually, finance teams enter invoice data into an excel spreadsheet and then manually email that spreadsheet for an approval signature.

Accounts payable automation is the process by which accounts payable processes are handled digitally.

Accounts Payable Automation refers to tools or processes that eliminate the manual aspect of accounts payable and instead automate them.

AP Automation Software

AP automation software help companies with invoice management, empowering them to manage a large volume of invoices and financial transactions between themselves and their suppliers.

This software can be used by accountants and members of the accounting department responsible for accounts payable. It can also be used by managers and executives to monitor AP processing activities.

Benefits of Accounts Payable Automation

Accounts payable automation software empowers businesses by reducing manual tasks. It also submits invoices, manages approval, and processes payment through a single platform with swift confirmation and better visibility. It also enables control over essential data and financial processes. Here are some key benefits of Ap automation.

  1. Time-saving
  2. Improved accuracy
  3. Low cost invoicing
  4. Fraud protection
  5. Enhanced insights
  6. Easy auditing
  7. Low-cost data preservation
  8. Integration with the existing system
  9. Early payments discounts
  10. Increased transparency of data 

How Does Account Payable Automation Work?

Accounts Payable Automation software can convert your suppliers’ invoices into standard digital formats, then push them through a digital workflow that is completed with paying suppliers.

Start of this process, AP automation uses optical character recognition to extract information from invoices.

Some products use machine learning to learn patterns over time and improve accuracy. It allows for accounting teams to eliminate the need for manual intervention for most invoices.

Automated Accounts Payable Tools

Four Interesting Automated Accounts Payable tools that can help to solve your AP automation problems.

Spendesk

Spendesk is a comprehensive spend management solution that automates the awful aspect of expenses, invoicing, reports, and company credit cards.

This tool automatically verifies and stores every proof of purchase within the platform from the moment a transaction is made.

Beanwork AP Automation

This tool is designed for Accountants. It automates reporting and invoicing. It is very helpful for companies that are going through an audit. It is also a good tool for importing and scanning invoices automatically.

Gatekeeper

Gatekeeper describes itself as an all-in-one contract management platform for everyone from the operation team to finance. It is a great deal for companies with lots of contracts, particularly with regular vendors.

Gatekeeper integrates with CRM software to link contracts with other customers’ records.

Stampli

Stampli automates invoice processing similar to Spendesk. But without the other payment tools like company cards and expense automation.

Stampli also has a supplier portal. So trusted vendors can also submit invoices directly into the system.

Why Automate Account Payable?

There are many reasons to automate AP. It can help drive down your business costs.

It can also help you scale AP more easily as your business grows by reducing the need for more people to hire.

AP automation also provides a tool that can help to manage cash flow and payments. By making the payment process smoother and faster. It also increases your ability to capture supplier payment discounts.

6 Proven Accounts Payable Automation Best Practices

Here are the six proven Accounts Payable Automation best practices to dramatically, increase efficiency, improve compliance, and boost productivity for your AP department.

  • Involve your AP team from day one
  • Plain for complexity
  • Use modern Software to Automate AP workflows
  • Leverage the power of integrations
  • Focus on the user experience

 Wrap up

Accounts payable is a key business process in every organization. While it protects your business from costly errors. Implementing software for AP automation can empower businesses by reducing manual tasks. Automated AP can also submit invoices, manage approval and other payment processes through a single platform. It can also control important data and financial processes.

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