Why do it? What are the advantages of end-to-end AP Automation software?
Without question, looking at Accounts Payable software and manual processes side-by-side exposes the inefficiencies of the latter. Whereas manual AP relies on accountants’ typing skills for data entry, AP automation drives more than £10.47 savings per invoice and reduces invoice processing and approval workflow time by 50 percent.
Other notable benefits include:
- Improved tracking and piloting activity.
- Quick, hassle-free management of account closing periods.
- 24/7 access to digital invoices, account data and analytical data, using any network device that’s configured for your system.
- Commitment and expenditure tracking lead to improved budget monitoring and forecasting capacity.
- End-to-end traceability and transparency of interventions make for a reliable, secure accounting process.
Finally, an often-forgotten benefit of AP automation is that it can improve service to and business relations with vendors. Not only in terms of rapid approval and paying on time but in the ability to track an invoice throughout the entire payable process, quickly answering any questions along the way. For this reason alone, your research of Accounts Payable software platforms needs to be thorough to find the best fit for your business.
Laying the foundation
Without knowing where you are currently at makes it hard to map the path to where you want to arrive. Therefore, the first step of any research effort should be evaluating the current business state and needs versus where you want to be and want to achieve. Taking the following steps will help:
- Map out your existing payments process to uncover the existing bottlenecks. This includes asking stakeholders their opinions and experiences.
- Start thinking about how things can be automated, even writing out ideal rules and processes.
- Recognize the influence of group mindset and feelings. Having everybody on board and with a similar mindset will smooth any implementation process so start preparing staff ahead of time.
In addition to these and before you begin comparing potential Accounts Payable solutions, ensure that you have the following:
- A clear understanding of all invoice validation circuits, including workflow complexity and interdependence.
- An accurate idea of the volume of invoices you expect to receive.
- A precise set of numbers for costs and processing time related to invoice management.
Of course, don’t forget to record everything.
What to look for in an AP automation solution?
Once you’ve laid the foundations and have agreed on clear objectives, you can start your Accounts Payable software comparison to find the ideal solution for your organization. When researching, consider the following:
Coexistence: An AP automation software solution needs to work with your existing software systems. Before committing, make sure it can integrate easily with your ERP, CRM, and accounting solutions. Ideally, there should be a seamless and real-time exchange of information between the systems.
Full process and workflow coverage: Your software platform must cover all processes and workflows to maximize performance. To automate the data entry and invoice validation process effectively, the solution must be primed for multichannel capture from all document types in multiple formats. Even better, the ideal capture should be by intelligent software that can learn and improve over time. This will also help in the elimination of opportunities for error and fraudulent activity.
End-to-end traceability: The software solution must have user authentication mechanisms in place, as well as secure classification and electronic archiving for all operations. This will help manage the process, facilitate the ability to quickly respond to any questions, and of course establish an audit trail to ensure compliance.
Always-on customer support: Whether for onboarding or platform expansions, there will always be questions or hiccups. Therefore, the supplier needs to provide 24/7 top-class support and assistance, which includes an easily accessible hotline and web chat for ongoing training or quick troubleshooting.
One final caution is to be patient. Once you’re informed and everything documented, give yourself the opportunity to find the right fit for your needs. Also, recognize that once the software is implemented, no matter how fast or efficient, the process still takes time to be truly successful. You will experience rapid (and immediate) advantages, but AI must have time to learn. The good news? Once automation is implemented, you’ll continue to experience positives after positives!
Questions? Reach out to us. Yooz delivers the highest automation rate by industry standards combined with extreme simplicity to help accounting teams and finance leaders tackle their challenges from purchase-to-payment.
Get a sneak peek of how best-in-class AP Automation solutions can automate your entire Purchase-to-Pay process quickly and easily and reduce your costs by 80%.
