There are 5 key steps to a successful process:
1. Analyse current AP processes
The first step is to understand your current processes and where AP automation can add value. If you’re finance team is still primarily using manual processes, then it’s worth having a conversation with them to understand where the best impact of automation can be felt. AP automation is no magic wand, however, so be prepared to uncover other issues that will need fixing before any new project begins.
2. Getting business buy-in
One of the most critical points of the AP project is securing support from the C-level as well as key stakeholders, as everything grinds to a halt if you don’t have everyone on board and on the same wavelength. Implementing AP automation is no mean feat, and you want to make sure that the cost and effort invested in the project comes to fruition once it’s over.
Make sure to highlight the current inefficiencies caused by manual processes within the finance department – such as late payments, invoicing errors, and inaccurate reporting – as well as the impact automation will have on the bottom line. Remember, Accounts Payable automation can reduce cost-per-invoice processed and time spend managing the payment cycle by up to 80%, helping provide a quick return on investment.
3. Research AP automation providers
Once you have a clear idea of what you want to achieve, you can start to explore the market for AP automation providers. Rather than trying to bolt on the first one you come across, you should spend some time doing your homework and talking to a handful first to get an idea of the differences between providers. The best one will have experience, fit on top of your existing tech stack, and won’t require a whole rip-and-replace of systems or even custom integrations in order to work.
For example, look at the list of partners the AP automation vendor has to see if they include yours. Will they be able to match with your accounting or ERP software? Do they have experience within your industry? And don’t forget to ask plenty of questions, such as:
- How scalable is the solution?
- How fast can it get up and running?
- How does costing work?
- How secure is it?
- How does it facilitate remote working?
- What makes it so different from the rest of the market?
4. Build an implementation roadmap
Creating a planned route of implementation that includes information such as the selected automation provider, costs, target completion date, and steps needed to get there is the best way to keep everyone and everything on track. Constant communication with stakeholders will still be key during the whole process, however, as this ensures that expectations are managed and no one is left disappointed with the progress.
5. Getting up and running
Once implemented, you can start to enjoy the benefits of AP automation and realise the benefits of moving away from manual processes. It’s no time to relax, however, as there will inevitably be some teething problems and knowledge gaps that will need filling, so make sure your provider is able to provide timely expertise or training whenever needed. Constant feedback to your chosen vendor is also important, as this will help fuel updates to the platform which your team can subsequently benefit from.
How long does it take to implement AP automation?
This is the golden question. The benefits of implementing AP automation are clear, and it’s no surprise that finance leaders want to make sure that teams are up and running with the technology as soon as possible. However, the actual time taken to implement the solution can vary widely depending on factors such as on your chosen supplier, the scale of the project, and any potential complications along the way. One key to success is automating your AP from procurement to payment, ensuring a seamless and efficient process throughout the entire accounts payable cycle.
As a rough guide, you should expect your AP automation project to be completed within a couple of weeks if things go well, but it will be longer if custom integrations and different workflows are needed. On the flip side, some providers can be operational with a couple of days, so it’s worth asking the question when researching suppliers.
It’s also worth noting the potential pitfalls of the AP automation project. For example, if you haven’t gotten key stakeholders on board with it or have members of the team that simply don’t understand how to use it, then you’ll never realise the potential of automation. Be supportive and remember that as this might be the first-time people are using automated systems, regular training will be important as staff get up to speed with the new tool.
Also, as mentioned earlier, AP automation isn’t a silver bullet. In other words, it won’t fly in and become the saviour of your accounts payable department if there are current processes that are simply broken. An example here is communication; even complete, end-to-end AP automation can’t do it all for you, and there will still be occasions where you will need to manage vendor or supplier relationships as well as chase down approvals from within the business.
Creating a successful AP automation project
Being able to identify and eliminate inefficiencies within key finance processes has become one of the most important factors in building successful modern businesses. AP automation projects are therefore becoming a critical part of the puzzle, able to remove friction and bottlenecks within the payment cycle and provide benefits that directly impact the bottom line.
Having a detailed and comprehensive plan in place is vital for successful adoption, ensuring that objectives and aims are well communicated, deadlines are met, stakeholder buy-in is secured, and the benefits are ultimately realised.
And that is how you drive AP automation project success.
