In a nutshell, accounts payable automation refers to the use of technology and software tools to digitize and streamline accounts payable processes. Companies can save time and resources by automating their AP tasks and processes. Aside from processing invoices faster, AP automation can enable businesses to take advantage of early-payment discounts and rebates, as well as avoid incurring late-payment fees.
In a manual AP process, invoices may arrive in different forms. Invoices can be mailed in paper format, sent through fax, or emailed as PDF files. AP teams need to manually enter, code, and approve invoices—tasks which are time consuming and error prone. Manually transferring data from invoices into an ERP or accounting system can result in data-entry errors, possible inconsistencies between the purchase order (PO) and the invoice, and missed discount opportunities. Small-scale data-entry mistakes—such as incorrectly typing numbers, reversing adjacent digits, or putting decimals in the wrong place—can create invoice bottlenecks, delay the payment process, and may result in serious financial consequences. By automating AP processes, companies can eliminate costly human errors, pay their bills on time, and improve their purchase-to-pay process.
By using an AP and payment automation solution such as AvidXchange, businesses can have better control over their spend management, free up their AP teams for more value-added tasks, and improve their relationships with suppliers and vendors.
AvidXchange is a cloud-based accounts payable and payment automation solution that offers tools for capturing invoice data, processing invoices, making vendor payments, managing documents, and reporting, to name a few. AvidXchange has built more than 210 integrations between its AP automation solutions and widely used business and accounting software systems.
Accounts Payable Organization
An accounts payable department can benefit from using AvidXchange’s automation solutions to improve accounts payable functions and process invoices faster. First, it could help to understand the accounts payable department definition. The accounts payable department is tasked with ensuring that vendors are paid on time for the services they provide.
By implementing AP automation workflows, companies can implement their accounts payable controls more efficiently. Accounts payable controls are used to reduce the risk of losses in accounts payable functions. AP controls create a mechanism of checks and balances to decrease the likelihood of duplicate transactions, safeguard against fraud, ensure that regulatory compliance is adhered to, and minimize human-error issues caused by mistakes in data entry.
By switching to electronic accounts payable systems, companies can eliminate the paper-based system of invoice processing and payments, which slows down accounts payable processes.
AvidXchange can enable companies to simplify their invoice processes, reduce costs, and improve their bottom line. After integrating with their existing ERP or accounting system, AvidXchange’s AP automation software can provide businesses with greater control over receiving, tracking, and approving invoices. With AvidXchange, AP teams can easily monitor and manage invoices and current payments by using a centralized dashboard.
For flexible approval workflows and enhanced internal controls, AvidXchange supports a two-way match process, or matching invoices with purchase orders, as well as a three-way match process, which ensures that there are no discrepancies or inconsistencies between invoices, order receipts, and purchase orders.
Best Accounts Payable Software
When choosing the best accounts payable automation software, companies need to look into various types of automation solutions offered by accounts payable solution providers. Businesses should make sure that the automation solution they select can satisfy their current demands and is also scalable to meet their future needs.
Generally speaking, an AP solution can help streamline invoice workflows, but some automation systems may be unable to process large volumes of vendor payments. Additionally, some AP software may have dashboards that are difficult to customize due to limited metrics data; other systems may have a steep learning curve.
Ideally, the best accounts payable software would have a user-friendly interface for easy navigation. With AvidXchange’s automated purchase-to-pay solution, companies can match purchase orders, approve invoices, and pay suppliers from the same digital platform. AvidXchange uses advanced technology such as optical character recognition, artificial intelligence, and intelligent rules engines to digitize invoices and extract relevant data automatically.
When using AvidXchange’s invoice management software, AP teams can view pending invoices in one simple dashboard and track status anytime, anywhere, using any device. AvidXchange also allows companies to design workflows based on their existing accounting systems, as well as keep complete control over payment reviews and invoice approvals.
Cloud Based Accounts Payable Solutions
Another question that businesses might ask is, “What does accounts payable software do?” Accounts payable solutions can automate routine AP processes such as receiving invoices, typing invoice data, matching documents, printing checks, coding, and routing invoices for approval.
Typically, cloud-based automation software does not require a huge initial cost or continuous IT support. Most cloud-based accounts payable solutions are compatible with existing ERPs and accounting systems. A cloud-based workflow automation system can be deployed in a relatively short time compared to an on-premises AP solution in which the software is installed and maintained on the company’s own internal servers.
When using cloud-based accounts payable solutions, system upgrades are done automatically, and there is no likelihood that bills will be misplaced or lost in the mail. AP teams can also track audit trails via a cloud-based solution to identify the steps taken on an invoice at each stage. More importantly, when compared to hard-disk and server restrictions, a cloud-based solution can potentially provide an unlimited amount of storage capacity.
By simply accessing AvidXchange’s online portal, approvers can review invoices as well as authorize them instantly. In addition, AvidXchange’s accounts payable solutions allow businesses to create automated rules to enable faster processing of invoice approvals.
Accounts Payable Software For Large Business
When it comes to accounts payable software for large business, AvidXchange can deliver scalable accounts payable software solutions for medium-sized businesses on their way to becoming huge enterprises. Moreover, AvidXchange can satisfy AP automation requirements in terms of both quantity and complexity.
Businesses in search of ways to reduce accounts payable paperwork and processing costs may benefit from automating their AP workflows. AP automation can also help enterprises maximize their cash flow by ensuring that suppliers get paid on time. In addition, AP automation can reduce payment cycle time, allowing businesses to take advantage of early payment discounts as well as improve supplier relationships. Lastly, AP automation can help companies strengthen their accounts payable internal control checklist.
AvidXchange provides AP automation solutions for various industries, including accounts payable software for banks. Businesses, including banking institutions, may benefit from using AvidXchange’s bill payment software, AvidPay, to pay suppliers quickly, more efficiently, and with minimal error.
Through BankTEL, AvidXchange can provide invoice-to-payment solutions for middle market companies in the banking and financial services sector. The acquisition of BankTEL by AvidXchange considerably strengthened its financial services channel, in which the AvidXchange network has gained approximately 1,500 new financial partnerships. Banks can provide better customer experience by adding AvidPay to their accounting suite.
AP Software Companies
The accounts payable software market continues to expand rapidly as more firms look for solutions to optimize their cash flow and minimize their accounting cycle period. By speeding up the processing of huge volumes of client invoices, AP automation software can help AP teams spend less time collecting payments from clients.
The demand for better traceability and real-time insights from invoice data is also propelling the growth of AP software companies. With digital invoicing, AP teams can focus more on strategic tasks such as managing cash flows, strengthening client relationships, and increasing market competitiveness.
Partnering with AP automation companies can allow businesses to reduce costs, enhance productivity, and pay vendors quickly and more efficiently. Accounts payable outsourcing companies can help companies enhance their operations and facilitate faster payment cycles.
As a leader among accounts payable outsourcing companies, AvidXchange has a large supplier network that can help companies streamline vendor payments. AvidXchange processes over $140 billion in transactions each year, with more than 700,000 suppliers paid through its network.
AvidXchange provides a cloud-based solution for invoice management and payment automation. All payment-related files are stored in AvidXchange’s central, cloud-based hub, which anyone on the AP team can access anytime, anywhere, using any device.
Accounts Payable Automation Best Practices
Adopting a paperless automation solution is one way to optimize accounts payable best practices. In addition, an AP software solutions provider can offer advice on accounts payable filing best practices.
With AP automation, companies can perform accounts payable analytics to monitor their accounts payable KPI benchmark, as well as improve their cash flow and ensure that third-party providers are paid correctly and on time.
Companies can potentially manage a streamlined payment system and adopt accounts payable automation best practices by using AvidXchange. All invoices and payment data are securely kept electronically thanks to AvidXchange’s cloud-based solution. Payment fraud protection is also included in AvidXchange’s accounts payable system. Finally, AvidXchange offers businesses a customizable payment system that allows them to pay suppliers in a variety of ways.
