If you are a working professional, then you know that automation is changing each and every industry. It helps make processes faster and more efficient. Not only does it save labor costs, but it also improves safety, quality of work, and overall efficiency of workflow. If we took a look at industries 5 years ago, you could observe a substantial amount lost due to low production time, limited energy in humans, human errors, and overall clunky procedures.
The same goes for the accounts payable process. Every industry has its fair share of invoices that it needs to deal with; accounts payable software take their entry here. AP automation or accounts payable automation allows this process to be handled digitally using technology. You don’t have to worry about taking care of these processes manually. After reading this article, you will know all there is about AP automation. Here’s everything that you need to know about AP automation.
Generally speaking, AP automation allows organizations or vendors that buy from you to receive invoices, manage approvals, and process payments automatically, through a single platform and, of course, automatically. Here are the 3 main components that AP automation covers:
There are 2 ways in which invoices are handled. They can be received electronically, or they can also be converted from paper to digital copies. The former method uses methods such as B2B/EDI connections, receipt via supplier portal, or PDF invoicing. The latter can be achieved by scanning and processing the copies with the help of artificial intelligence or OCR technology. After extracting the necessary information, the data is then stored in the cloud.
You are not only getting your invoices transferred automatically; most AP automation software provide a feature of verifying them. Initially, the data is captured by the UI of AP automation software, and then it can perform the same function in 2 ways; it will depend on how you set it up.
The software can either match the invoice with purchase orders and goods receipts, or it can automatically transfer the invoice to the relevant team for approval. The team then reviews the invoice and sends their approval. Once the approval is received, they are then sent to the ERP or accounting system.
Some people criticize the safety of data that is being transferred online and if it will be available any time for them to audit. AP automation allows the invoices to be securely archived. On top of this, audit trails of all actions taken on each invoice are available for financial audit purposes. You are able to access invoices anytime, anywhere from the cloud; all you will be needing is an internet connection.
AP automation allows you to save time, improve efficiency, increase accuracy, reduce costs, and also built-in compliance. With so many advantages, it is difficult to resist investing in AP automation software. Before you do that, do your research and choose software that provides all the latest features at affordable pricing.