What is AP Automation & How Does It Work?
WHAT DOES AP AUTOMATION MEAN?
AP automation, or accounts payable automation, is the process whereby accounts payable processes are handled digitally using technology, rather than manually. This can create faster, leaner, more cost-effective AP workflows.
AP automation solutions can intelligently capture and analyse the information that’s on your invoices, speeding up the process and helping reduce errors.
How does AP automation work?
AP automation uses optical character recognition (OCR) to extract any relevant information from invoices and purchase orders (POs). OCR then translates text from the document into a code that is then used for data processing. The data is then placed into a digital workflow which will then automatically pay suppliers as long as everything is correct.
What are the benefits of AP automation?
By automating AP you will achieve simplicity, speed, and immeasurable savings. Our mobile-friendly platform ensures you can start processing invoices more efficiently, even whilst working away from the office.
By manually keying in data there is room for human error, accidentally typing in the wrong number, putting something in the wrong place, or deleting something you shouldn’t have. By automating AP, your data will be captured electronically, which not only speeds up the process but also removes the risk of errors that could cost your business money.
Invoice cycle time is often a challenge to stay on top of when done manually. To keep the cash flow liquid your business should pay invoices on time. Automating AP speeds up the process from intake to approval, ensuring that everything is paid on time.
Protect yourself from fraud:
To protect your business from fraud it is crucial that your team follows the correct approval process and only pays legitimate invoices. Automated systems track every action that takes place on an invoice, from who handled it to what steps have been taken.
Improve vendor relationships:
Once your team is spending less time manually keying in data and matching invoices, you will be more likely to make early payments and receive vendor discounts. Consistently paying invoices early will improve your relationship with vendors which could benefit you and your business in the future.
Grow your business:
Technology is ever-evolving and the way we run our businesses is changing alongside this. Automation allows your business to grow and change with the times. As technology improves so can your automated processes, allowing your business to grow to its full potential.
Are you ready to save time, and money and grow your business?