Accounts Payable Automation, popularly known as AP Automation, is a technology system that the accounting departments use to automate the accounts payable invoice processes. The AP Automation is equipped with intelligent optical character recognition (OCR) technology that helps to integrate both artificial intelligence (AI) and machine learning (ML) software. The most well-known automation for AP takes with receipt, capture, and coding of invoices.
How does AP Automation work?
When talking about the Intermediate AP Automation system, it will also streamline processes such as purchase order (PO) matching and three-way matching against the delivered goods or services. However, you might find duplicate invoices, mismatch notifications, and other fraud prevention functionality at the intermediate level.
On the other hand, the advanced AP Automation systems work by bridging the communications divide between AP teams and non-accounting colleagues. The work continues by turning invoices into a collaboration tool to ensure control over the procure-to-pay process.
AP Automation Features
A few of the best features of the Accounts Payable Automation are as follows:
Single user experience for capturing and processing payments
Firstly, the software allows a single user experience for capturing along with the processing of payments. It eliminates logging into multiple systems and processes all your invoices, which results in a single, streamlined user experience for your accounts payable process.
Predictive coding powered by AI and machine learning
Secondly, AI and ML help cleverly predict the capture, and coding boosts compliance with automatic invoice processing. AI automatically matches all of the invoice data against purchase orders, goods receipts, or contracts based on a wide range of information, including line items, line totals, or invoice headers.
Intelligent invoice scanning and touchless data capture
Next, the art of data capture software pinpoints and extracts all of the invoice data automatically without any hassle. The clever AI saves you time doing manual tasks. Finally, the original invoices are automatically archived in AP Automation, making it easier for you to audit whenever you need them.
Complete financial visibility with reporting and analytics equals better decisions
Finally, the detailed operational and financial reporting and analytics will help you make smarter and easier decisions by controlling your finances. Deep-dive into performance KPIs, cash flow forecasts, captured and missed discounts, a working capital dashboard, and so much more.
Benefits of Automating AP
Accounts Payable Software, through its policy of accounts automation, can make your life easier and get your priorities done quickly without facing many issues. A few of the benefits of using the software are as follows:
- Saves time – The primary benefit of using the software that it saves time. Earlier, slow repetitive work of checking purchase order forms and entering data can be done instantly with the help of AP Automation.
- Leads to fewer errors – Using the software, you will find lesser mistakes. Working manually might lead to errors; however, using computer programs repeat them endlessly without fault.
- Digitizes documents by default – Giant storage rooms and paper filing are out of the present situation. Despite filling out paper purchase orders and then scanning and emailing them around the office, it is better to go digital. Working digitally will also help to make your work easier.
- Increases productivity – Next, the software also helps in increasing work productivity by saving time in not struggling with tedious, manual work. The team has sufficient time to focus on what needs to be done.
- Makes AP accessible from anywhere – The software also makes you access it from anywhere. When working on paper, it usually needs to be done right from the place. The essential documents have to be placed in the right in-tray and filed in the right cabinet. However, when you are working digitally, you do not need to worry as they are cloud-based. You can access your files from anywhere with the help of a stable internet connection.
- Gives autonomy to other teams – Lastly, if you choose a well-made, intuitive AP automation tool, all the processes become accessible to everyone. Moreover, it also makes it easier for other teams to confidently file purchase orders quickly and efficiently, which means they need a lot less hand-holding than they used to.