What is AP Automation?
What is AP automation?
The productivity of an accounts payable department directly impacts an organization’s financial stability and reputation. This is why keeping your AP department running efficiently should be a priority for any business. AP automation software automates and streamlines back-office accounts payable processes through digital workflows that eliminate manual tasks, capture data, automate approval workflows and payments, and seamlessly integrate with enterprise resource planning (ERP) systems. Using AP automation software, teams can create an automated end-to-end payment solution, from invoice intake to data entry to approvals to payments.
Every mid-sized company, from manufacturing to commercial real estate, retail chains, restaurants, nonprofits, or any other industry can automate account payable operations and gain real benefits of time and money saved almost immediately.
How does AP automation software work?
Accounts payable departments can use AP automation software to streamline their entire process, including invoice capture, data input, approvals, payments, and reporting. Here’s a snapshot of how AP automation software benefits your business. Your accounts payable department can use AP automation software to:
- Automatically capture data from invoices
- Extract and store purchase order matching information and supporting documents
- Digitally capture and verify invoice data such as GL codes, line item information, terms, and amounts
- Extract digital and handwritten data automatically, free of errors, and sync it across your accounting systems
- Automatically send invoices for validation and payment approval or set up auto- approval rules
- Schedule approved payments before their deadline and take advantage of early payment discount opportunities
- Use advanced reporting and analytics to bolster the performance of your department, identify additional opportunities, set goals and track KPIs, improve cash flow analysis, remove bottlenecks in your AP processes, and make more strategic decisions
- Streamline your department’s reconciliation process
- Reduce fraud with consistent, up-to-date data monitoring and reduce compliance risk with a verified audit trail of all financial activities
How can AP automation benefit your business?
Automation empowers companies to create customized workflows that enable stronger, nimbler, and more efficient accounting teams. The benefits of AP automation are clear; teams can streamline approval processes, cut invoice processing time, eliminate mistakes, ensure on-time payment, improve working capital management, and optimize performance.
Plus, your company can take reporting to the next level with sophisticated, clear, actionable analytics and cross-platform benchmarking. Here are five benefits of AP automation that improve efficiency and save time:
Save time with invoice automation
You can simplify your AP workflow by automating your invoice collection, sorting, categorizing, and data input upon arrival, saving tedious hours of manual invoice processing time. Automating your accounts payable process means you’ll be alerted to duplicates and reminded of pending due dates. You’ll never mistakenly overpay an invoice, pay an invoice twice, or expose your company to the risk of late payments.
Faster, easier approval processes
Once an invoice is captured and validated, it is automatically routed directly to the manager responsible for approving the payment, accompanied by fully customizable workflows and notifications that ensure the invoice doesn’t get missed. And, with cloud-based software, approvers can access and approve invoices from anywhere, at any time.
Error-free data capture
Fully automated data capture and sophisticated analytics provide deeper insights into your performance, giving you more confidence to make short-term and long-term plans and improve your reporting dramatically. Eliminating invoice errors and duplicate payments means you won’t need to rebalance the books when you find last-minute errors during the month-end close.
No more PO matching bottlenecks
AP automation software stores all necessary and supporting documents as well as captures and digitizes invoice data like GL codes, line item information, terms, and amounts. All this data can be intelligently extracted, verified, compared against corresponding invoices and POs, and mismatches are flagged automatically. This process removes bottlenecks, improves accuracy, and frees up your AP staff for focus on strategic projects and analytical work that supports organizational efficiency and growth.
Save money with electronic payments
AP automation also makes electronic payments simpler by providing one centralized location from which to choose your payment method of choice. By automating payment execution, you can schedule approved payments to be sent out on or before their deadline, reducing late payments and ensuring you can take advantage of opportunities for discounts, volume rebates, and other savings. And e-invoicing allows you to pay accounts immediately, which can generate early payment discounts from many vendors.
Turn to Goby’s AP automation solutions
Goby offers accounts payable professionals a faster, smarter way forward with cloud-based AP automation. Our end-to-end solutions enable teams to streamline approval workflows, enhance monitoring, reporting and collaboration, optimize cash flow, improve vendor relationships, all while driving rapid ROI.
Goby creates a frictionless environment for managing AP. With more reporting capabilities than any other AP platform and solutions for complex, recurring invoices such as utility bills, Goby offers AP teams greater control and better insight into their performance. Serving mid-market companies across all industries, Goby remains committed to the mission of creating delightful results out of ordinary data.