What is Accounts Payable Automation?

Accounts Payable Automation streamlines the Accounts Payable Department resulting in reduced manual processes and improved operational efficiency while reducing the overall cost associated with the department.  

There are two unique processes in Accounts Payable that require automation:  

1)  Payment Automation 

Automating the payment of invoices, bills etc. that are run through the accounts payable department is the easiest place to begin the Accounts Payable transformation through Accounts Payable Automation.  By automating payments first, you begin by eliminating all of the paper that your department creates resulting in:    

  • Faster processes & reduced bottlenecks
  • Electronic payment processing 
  • Supplier onboarding to your program 
  • Secure document trail for SOX and internal audit compliance
  • Staff free to focus on strategic financial reporting
  • 90% lower cost 
  • Your A/P department becomes a revenue-generating machine

Payment automation services may be provided by your bank, by your ERP or by outside SaaS organizations that deal exclusively with Accounts Payable Automation.  If you are a company that utlilizes in diversified banking strategy, then enlisting the support of Payment Automation platform will allow you to maintain one process regarless of the numer of banks or bank accounts.  

2)  Invoice Automation 

Automating the incoming supplier invoices, bills etc. that must be paid in the accounts payable department is also part of the Accounts Payable transformation process but is harder to implement.  But, by eliminating the incoming paper invoices, you will transform your department into one of the most optimized departments in your organization.      

  • Faster processes & reduced bottlenecks
  • Automated workflows and approvals
  • Reduced footprint for the department 
  • Internal audit compliance
  • Staff free to focus on strategic financial reporting

Invoice Automation is done by SaaS companies that may handle your incoming invoices for you, allow you to forward them or may provide you with scanners to capture the invoices with your department.  Transforming invoice automation takes a big budget.  Upfront Capital expenditure is usually required.  In addition, managing the implementation to transform this part of Accounts Payable Automation may take months or more to complete.  

We strongly recommend beginning your Accounts Payable Automation process by automating your payments.  It's easy to manage and makes a tremendous impact and can turn your Accounts Payable cost center into a revenue generating center.  

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