Accounts payable (AP) automation offers numerous benefits for businesses of all types and sizes. It can quickly reduce manual work, resolve exceptions quickly, and pay suppliers on time accurately.
What is AP automation?
AP automation, also known as accounts payable invoice automation, improves AP process efficiency using AI, and automation technology. The right AP automation software should include features such as:
- E-invoicing: Allow invoices to be received digitally or quickly converted to electronic formats from paper invoices and scanned documents.
- Archival and storage: Store and organize invoices digitally, with audit records of all invoice-related tasks, updates, and edits.
- Matching: Match invoices to purchase orders (POs), including other related documents, to ensure that they’re error-free and accurate.
- Quick exceptions resolution: If an invoice requires exception processing (quantity, price, tax, or shipping mismatches, for instance), it can be intelligently routed to the proper team or individual for correction.
What are the benefits of AP automation software?
An AP automation solution such as Vroozi Invoice + Intelligence can not only reduce time spent on managing invoices, but also give your team more time to focus on high-value invoices and potential fraud. This lowers the cost per invoice, shortens cycle times, and ensures invoice accuracy. Here are a few more benefits of using AP automation software:
1. Improves Process Efficiency
AP automation can help teams achieve process efficiency. How? It decreases the need for manual processes, allowing organizations to work faster and more efficiently.
Paper-based and manual AP processes are time-consuming and riddled with errors. AP automation can help businesses process invoices faster so they can pay suppliers on time and potentially make better working capital decisions.
2. Saves Time and Resources
The right AP automation software—such as Vroozi Invoice + Intelligence—lowers the number of touches per invoice, resulting in less time spent on invoices by employees and the AP department.
3. Lower Operational Costs
Automation can lead to more savings for buyers and suppliers. Automating can eliminate time-consuming manual and paper-based processes, allowing organizations to spend more time on complex tasks.
AP automation also reduces labor by streamlining invoice processing by reducing the need to chase down the right people for approvals and using historical data to ensure accuracy and consistency.
4. Fewer Errors and Exceptions
AP automation can help scale your business by improving accuracy and allowing you to accomplish more with less manpower by automating many simple and repeatable tasks. It also decreases payment errors, fraudulent invoices, or duplicate invoices by double-checking invoices against procurement documents and master data.
Automation can also help identify the people needed to resolve exceptions, reducing the number of touches required to resolve the exceptionl. A software platform like Vroozi deals with exceptions quickly by assigning the invoice to the right person. That means that invoice processing can be reduced to just 1-2 days.
5. More Accuracy
Higher levels of accuracy help prevent fraud, potential issues, and more.
What should you look for in an AP software solution?
Now that you understand what AP automation can do, what should you look for in an AP automation solution?
- The ability to scan and capture invoices and documents with high accuracy using artificial intelligence (AI).
- Quick approvals.
- Automated invoice matching with order lines, including partial receipt.
- Correctly coded invoices for accounting using historical data and machine learning (ML).
- The ability to identify the right person or team to quickly resolve exceptions
- Connection with your financial systems for posting and payments.
- The ability to handle a large variety of supplier invoice types, multiple languages, and global formats for any sized company.
- Digital audit trails.
- The ability to get up and running fast. Vroozi seamlessly integrates with buy-side and sell-side systems.
- Global compliance that keeps your organization current with country-specific e-invoicing and tax laws.
How can AP automation benefit your business?
Learn how the right AP automation solution can help your business. Schedule a demo today and see how Vroozi can modernize your operations.
