What is Accounts Payable Automation?

Invoices or purchase orders can then be routed to the relevant teams or departments for approval, followed by payment and then archiving. In many cases, this process can take place fully automatically, thus reducing the risk of human error and accelerating accounting processes.

With the advent of artificial intelligence, AP processing has become an end-to-end solution by which companies can increase operational efficiency and expedite payment, while simultaneously providing reliable real-time data that serves as the basis for effective business decision-making.

Defining Accounts Payable automation

Accounts Payable automation can be defined as the use of technology and automated systems to digitalise and streamline all or part of the Accounts Payable process.

The challenges of paper-based processes

One way to highlight the clear benefits of Accounts Payable automation is to consider the shortcomings of existing paper-based AP systems.

The manual aspect of traditional AP processes renders them susceptible to data entry errors, not least on account of the laborious and complex nature of reconciling paper invoices. The time-consuming and labour-intensive task of receiving paper invoices, matching them to purchase orders, submitting them for approval and processing payments not only entails high operational costs, but it is also viewed by many staff as an unrewarding task that is detrimental to employee morale. What’s more, difficulties managing storage systems and retrieving required documents can slow down the entire Accounts Payable process, resulting in payment delays or duplicate payments that then have to be recovered, both of which can ultimately compromise supplier relationships. When issues such as these arise, this results in even more work for the staff involved.

The manual handling of documents and processing of payments also opens companies up to the risk of potential fraud, while the lack of visibility and control makes it difficult to plan an effective business strategy. Furthermore, with a paper-based Accounts Payable system, ensuring compliance with reporting obligations and data protection legislation is significantly more labour-intensive and susceptible to errors.

Automated Accounts Payable processing offers many advantages over traditional, paper-based AP.

Preventing errors and enhancing accuracy

By entrusting the management of your invoice processing and payment procedure to a reliable AP automation software application, human error is ruled out, thus resulting in a more streamlined and accurate AP workflow.

Reducing invoice processing effort

AP automation reduces the dedication of staffing efforts to the printing and storage of documents. Digitalised invoice data is automatically electronically stored and can be quickly and efficiently located and retrieved when required.

Accelerating invoice approval times

With paper invoicing, the approval process can be particularly cumbersome, with documents passing through several hands prior to approval for payment. Automated AP accelerates this process and reduces the need for manual error-checking. Intelligent workflow rules can be defined, including the sending of alerts for invoices that exceed a certain value threshold, or the forwarding of notifications if an employee is on leave or unavailable.

Closing books on time

By delivering accurate real-time financial reports and instant payment reconciliation, automated AP can significantly accelerate the financial close.

Automating 3-way matching

The automatic matching of purchase orders to invoices and goods receipts eliminates time-consuming manual labour and enables the fast identification and resolution of discrepancies.

Detecting fraud

The ability to identify inconsistencies in orders, invoices and transactions, and pinpoint the user involved enables rapid fraud detection. This in itself serves as a major deterrent to financial fraud and thus helps to avoid litigation.

Centralising of data for better reporting

The scanning and digitisation of paper invoices means that all data can be stored online in a central location and in a standardised format. This enables access by all employees who have been granted the corresponding permissions and facilitates the accurate real-time reporting of financial figures.

Getting control over spend and budgeting

Improved reporting and data analysis, paired with the ability to call up clear and transparent data in a matter of seconds allows decision-makers to budget wisely and manage their spending.

Optimising cash flow management

Cash flow management is vital to the success of any business. Effective cash flow management is critical to sustaining growth and financial resilience. In the short term, AP automation allows for faster invoice approvals and smarter payment scheduling, helping CFOs avoid late payment penalties and unlock working capital that can be redirected to strategic priorities. The efficiency gains and cost savings delivered by automation translate into immediate financial headroom. With enhanced visibility over payables, the ability to identify early payment discount opportunities and accurate forecasting, finance leaders are better equipped to plan, invest and make data-driven decisions with confidence.

Enhancing data security and compliance

With data stored only in electronic format, access to sensitive information can be restricted to a select group of pre-defined users. Data is encrypted and secure audit trails are automatically implemented, thus reducing the risk of unauthorised access or fraud. Automated AP solutions also ensure compliance with regulatory requirements in terms of data access and retention periods, ensuring accurate record-keeping and good audit trail management. The enforcement of stricter e-invoicing and tax regulations in many countries (such as the Making Tax Digital initiative in the UK) requires a robust and scalable solution to ensure compliance within Accounts Payable.

Improving employee satisfaction

Menial tasks are detrimental to job satisfaction. Streamlining processes, reducing manual labour and freeing up employees to perform more strategic tasks have a significant positive impact on morale.

From receipt to payment: A seamless workflow

Accounts Payable automation represents a seamless end-to-end solution. Whereas traditional paper-based solutions can be disjointed and inefficient, AP automation manages everything from the automated capture of supplier invoices all the way through to the generation of payment files and archiving of documents. This comprehensive solution also handles the reconciliation of purchase orders, invoices and goods receipt notices, and ensures regulatory compliance.

Integration capabilities with ERPs and other systems

By eliminating data silos and reducing manual intervention, integration between an ERP or accounting software and an AP automation solution enhances financial accuracy and operational efficiency. Rather than viewing AP automation as a standalone tool, businesses should consider it a natural extension of their ERP, leveraging real-time data synchronisation to gain greater financial control and visibility.

Rebalancing priorities: More time to concentrate on strategic, value-added projects

The introduction of artificial intelligence has been viewed by many as a threat to human jobs. However, the use of AI-driven solutions to handle time-consuming Accounts Payable tasks should not be feared but rather viewed as an opportunity to allow skilled employees to focus on strategic tasks, add value to the company and develop deeper job satisfaction.

Evaluating cloud-based vs. on-premise options

Both cloud-based and on-premise solutions have advantages and disadvantages. Cloud-based Software-as-a-Service (SaaS) platforms are accessed via the internet. This brings numerous advantages such as the ability to access data across multiple locations with real-time updates and the option to scale resources up or down as required. However, while an on-premise solution arguably offers greater predictability in terms of cost, higher upfront investment and ongoing maintenance expenses must be considered when choosing the best AP automation solution for your organisation.

Assessing scalability and customisation needs

As companies grow and their needs become likely to change, it is vital to ensure that the chosen solution can be scaled up and adapted to meet new business requirements. Cloud-based solutions can usually be scaled up by simply upgrading the subscription package, thus avoiding wasted time and the unnecessary expense incurred if updates are required at a later date. This flexibility ensures that the solution can adapt to a business’ needs and to changing regulatory requirements, e.g. with regard to e-invoicing.

Ensuring a user-friendly interface

It is vital that AP teams can be quickly onboarded and trained in the efficient and effective use of a new automated AP solution. With one end-to-end platform covering all aspects of the Accounts Payable process, it is essential to choose a solution with an intuitive and user-friendly interface. A clear and accessible design reduces the learning curve, encourages adoption across teams and helps users stay productive from the start. The easier the platform is to use, the faster it will deliver value to an organisation.

Use of advanced AI technologies

With Accounts Payable automation, AI is used to automate many routine tasks, ranging from data entry to invoice processing. Where AI falls short is in its ability to apply critical thinking and make assessments on a case-by-case basis. When selecting an automated AP solution, it is important to find a provider that is not only at the cutting edge in terms of the integration of AI-driven functionalities, but that also harnesses these capabilities in a manner that acknowledges the importance of the human element.

Reliable and highly knowledgeable support team

Choosing an automated AP solution is all about increasing operational effectiveness and ensuring smooth workflows. The chosen solution should integrate seamlessly with existing software and operations. However, should teething problems occur, it is essential that the respective provider has a team of reliable and skilled staff who are on hand to troubleshoot and resolve issues quickly. In addition to a range of expert onboarding and training service options, Yooz has a dedicated customer support team to provide global technical and functional support. We also have a team of Customer Success Managers who will work hand-in-hand with existing finance teams to get up and running. They will be available to answer any questions employees may have throughout the partnership with Yooz.

Compliance

Leaving the majority of your accounting processes to an automated system requires a considerable degree of trust in a service provider. Ultimately, businesses are themselves responsible should errors occur or should they fail to fulfil regulatory or data protection obligations. To avoid running into legal difficulties, it is importance to verify that a chosen solution incorporates robust and reliable compliance measures.

Pricing model

A business cannot remain viable if it pays over the odds for an Accounts Payable solution with functionalities that are not relevant to the company’s requirements. Flexibility is key. At Yooz, subscription prices are based on the volume of documents processed, with flexible packages starting from just £129. We also offer a free 15-day trial and a handy calculator tool to help companies assess the level of savings they could generate by switching to automated AP.

It goes without saying that effective preparation and thorough research are essential when choosing an AP automation solution. Once ready to integrate and implement a new system, there are a number of steps to take to ensure that this process runs as smoothly as possible:

1. Adopt a pragmatic approach to your AP automation project

A lot of people think that integrating AP automation into your current process is a stressful, time-consuming task. In reality, it’s a fairly simple project that addresses a specific yet critical process of the business. However, it still needs to be managed in a very pragmatic way.

First, make sure to consult the various stakeholders (CFO, accountants, buyers, validators, executive management team, etc.) to get a better understanding of the problems that need to be solved.

This could involve asking questions such as:

Next, taking the answers to these questions into account, make a list of all the pain points mentioned. For example:

• Time-consuming and error-prone manual tasks
• Processing delays due to unclear approval workflows
• Lost invoices and associated consequences
• Double payments
• Poor relationships with suppliers due to late payments
• Non-integrated systems, resulting in redundant, duplicated data entry
• Issues with regulatory compliance
• Lagging financial closures due to lack of reliable data available
• Lack of analytics to assess costs per site or per product, etc.

Whenever possible, quantify the cost of the identified problem.

After this, take the time to define the current situation, including:

• The types of documents being processed and their volume
• The channels used to receive invoices (and the different formats)
• Who is involved at each stage of the process
• Which reporting systems are used
• The approximate cost of each step

Finally, identify and outline the ideal solution and what a successful project would look like to you. Doing this saves time and effort later on, by minimising the risk of the misalignment of the chosen solution with the company’s expectations.

2. Define your objectives

Here, start by defining your qualitative objectives, which can be derived from the pain points identified in the previous step. For example:

Next, establish your quantitative objectives, which will help to guide ROI evaluation after implementation. In an AP automation project, there are typically four indicators that are relevant:

• The cost of processing an invoice, which can be broken down into 6 steps:
  • Receipt
  • Accounting entry
  • Validation
  • Management of any supplier dispute
  • Payment
  • Archiving
• The average processing time of an invoice from its creation all the way through to archiving
• The number of invoices processed per person
• The number of supplier disputes and the associated average processing time

3. Plan your project

Once steps one and two have been completed, the third and final stage involves moving ahead and planning your AP automation project.

First, start by identifying the ideal moment in the year to implement the solution.

The answers to these questions will depend on the unique circumstances within your organisation.

Be sure to also consider the overall timeline for your specific implementation.

Each step in the process can vary in duration depending on several factors, including:

• The type of solution being implemented
• The complexity of your current processes
• Any required customisations or integrations

These elements can all impact the total time required, so it’s important to plan accordingly and build in flexibility where needed.

When selecting an AP automation solution, prioritise one that’s easy to configure, even when dealing with complex workflow processes. Flexibility and ease of setup are key to smooth implementation.

It’s also important to consider the deployment model. Some tools require on-premise installation, while others are cloud-based and don’t involve any local setup. Cloud solutions typically offer faster deployment, easier updates and greater scalability, which can make a big difference as your business grows.

Yooz can reference numerous satisfied companies around the world. Here is a small selection from among the many success stories…

Industry-specific use cases and benefits

Lessons learned from leading brands

With each successful project, Yooz has acquired a wealth of expertise on how to successfully implement an automated AP solution. We boast experience in a wide range of sectors and can highlight the steps required to ensure the successful management of your project, identifying dos and don’ts, the outcomes that can be expected and anticipated time frames.

Omni-channel document capture

Transitioning from paperless accounting to an automated solution is by no means simple. The sheer scope of documentation in paper-based systems (different invoices, credit memos, purchase orders etc. issued by numerous different suppliers) requires an effective solution for the scanning and extraction of pertinent data. Yooz offers an effective document capture tool that enables multi-format, omni-channel document handling, extracting key data fields from documents in any format (PDF, Word, email, paper, etc.).

Leveraging AI for smarter data extraction and processing

The next generation of artificial intelligence aims to significantly reduce manual intervention in the Accounts Payable process. Drawing on Big Data from 1 million suppliers and 200 million documents, Yooz’s integrated AI can learn how to recognise relevant data within a document, thus eradicating the need to manually tag various elements of an invoice. This is not about machines replacing humans – AI can handle repetitive tasks that do not benefit from human intervention, thus allowing staff to focus on higher value activities.

While existing data extraction systems such as OCR are still used as part of automated AP, scanned documents are now interpreted and consolidated by artificial intelligence, thus ensuring greater accuracy and efficiency. Embracing AI in Accounts Payable has been shown to reduce the time taken to process invoices and payments by as much as 80%.

The automated AP marketplace is developing at a fast pace, with the adoption of AP automation on the rise. Here is a brief overview of just some of the innovations and new trends we can expect to see in the near future.

Fraud detection and prevention in Accounts Payable

Artificial intelligence and machine learning will continue to assist AP departments in spotting duplicate or fraudulent invoices, while also analysing patterns and looking out for anomalies that may indicate fraudulent activity. The automated systems can then provide fraud alerts, enabling AP teams to take fast and decisive action.

E-invoicing

The rapid uptake of automated AP solutions will soon eradicate the use of paper-based invoicing altogether. Many countries (such as France, Germany, Spain, Italy and Belgium) already have e-invoicing regulations in force. In the UK, a 12-week consultation on e-invoicing was held at the start of 2025, aiming to promote the adoption and standardisation of electronic invoicing.

In light of this government consultation, there is every possibility that e-invoicing will become a mandatory requirement in the UK, as has been the case in other European countries. As a result, e-invoicing will soon become commonplace, thus further streamlining and simplifying processes and removing the need for document scanning and data extraction altogether. Companies investing in an automated AP solution should therefore ensure that their chosen product offers facilities for the sending and receiving of e-invoices.

Accounts Payable automation is an incredibly valuable tool allowing businesses to streamline accounting processes, standardise the Purchase-to-Pay workflow, ensure regulatory compliance and reduce the need to assign menial and time-consuming manual tasks to valued and talented employees. Yooz sets itself apart within this market, thanks to its Smart Data Extraction technologies and use of advanced AI technology.

If you have queries as to how AP automation can benefit your company, there is a wealth of resources available via the Yooz website, as well as a team of experienced experts who are on hand to answer specific questions and address any concerns you may have.

External resources

• How AR And AP Automation Can Help Conquer Manual Inefficiencies
• Accounts Payable Automation, And Succeeding With Its Implementation
• Beyond Manual Processes: Embracing AP Automation