What is AP automation?
AP automation, or accounts payable automation, is the process whereby accounts payable processes are handled digitally using technology, rather than manually. This can create faster, leaner, more cost-effective AP workflows.
AP automation solutions can intelligently capture and analyse the information that is on your invoices, speeding up the process and helping reduce errors.
What is slowing Accounts Payable down in 2023?
- 47% of invoice/payment approvals take too long
- 45% of AP Teams face a high percentage of exceptions
- 23% of Supplier payments are late
- 22% of AP Teams face high invoice processing costs
Over the last decade, Ardent Partners have conducted Accounts Payable Market Research and have recently released a State of Market Report with their findings.
In this study, they found that Accounts Payable biggest challenges in 2023 are ‘mostly tactical problems caused by having paper-or manual-based processes’. The study concluded that for the second year in a row, lengthy invoice and payment approval times cause the biggest delays. Closely in second one of the issues that is commonly slowing down AP in 2023 is a high percentage of expectations. Due to uncertain economic conditions and increased attention to supplier satisfaction late supplier payments were identified as the third most frequent challenge. High invoice processing costs were also highlighted as a common issue.
How does AP automation work?
AP automation uses optical character recognition (OCR) to extract any relevant information from invoices and purchase orders (POs). OCR then translates text from the document into a code that is then used for data processing. The data is then placed into a digital workflow which will then automatically pay suppliers if everything is correct.
What is the use of AP automation?
AP automation gives you a single solution that manages the entire Accounts Payable process, from purchase order to supplier invoice approval.
1: Automate your purchasing process:
- Create purchase requests;
- Automate workflow processes;
- Generate purchase orders automatically;
- Manage goods receipting; and
- Monitor your budget.
2: Automate your accounts payable process:
- Omni-channel capture (email, post mail, supplier portal): invoices, credit memos, orders, delivery slips etc.:
- Smart technologies for recognising and analysing data without any prior configuration. Over 80% of all invoices are automated:
- Approval workflow management of invoices and payments and issuance of digital vouchers to pay: and
- Export the data to the accounting software or ERP
3: Electronic archiving and automatic filing of all documents:
- Electronic management of all types of documents: invoices, orders, deliveries, human resources, legal, or technical documents, etc.;
- Full-text indexing of all documents: and
- Automatic filing within dynamic electronic folders.
Would you like to find out more about how Accounts Payable automation could benefit your business? Get in touch, it would be our pleasure to set up a call and answer any questions you may have.
