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What is Accounts Payable Automation?

Streamline process resulting in reduced paper 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, bill processing, etc. that are run through the accounts payable department is the easiest place to begin the Accounts Payable transformation.  By automating payments first, you begin by reducing the paper that your department creates resulting in:    

  • Faster processes & reduced bottlenecks
  • Electronic payment processing 
  • Supplier onboarding to your program 
  • Secure digital trail for tax and internal audit compliance
  • Staff free to focus on strategic financial reporting
  • 90% lower cost 
  • Your A/P department becomes a profit-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 utilizes in diversified banking strategy, then enlisting the support of Payment Automation platform or software will allow you to maintain one process regardless of the number of banks or bank accounts you use for disbursements.  

2)  Invoice Automation 

Automating the incoming supplier invoices, eInvoices, invoice processing, etc. that must be paid in the accounts payable department is also part of the Accounts Payable transformation process.  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 on your own 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, unless you partner with the right invoice automation provider. Choosing the right company to automate your invoices and payments is paramount to the success of your AP department.

We strongly recommend beginning your Accounts Payable Automation process by automating your payments first.  It's easy to manage and makes a tremendous impact and can turn your Accounts Payable cost center into a profit center instead. That being said, Invoice Automation is equally as important because it increases security and cuts invoice approval time by upwards of 90%.

Utilize our ROI Calculator to see how much you can save by fully automating your AP.

Use the ROI Calculator