Account Automation
Accounts automation, or AP Automation is an automated technology process that digitizes the supplier's invoice management by capturing all the required details for account processing.
In addition, AP automation reduces manual or human data entry tasks. For example, artificial intelligence and machine learning technologies automate invoice processes to minimize errors and achieve 99% accuracy.
Accounts Automation Workflow
Accounts automation enables companies to process supplier invoices without human intervention by providing a digital workflow to manage steps previously handled by an AP staff member.
- Capturing Invoice Data: Holistic accounts payable automation starts with capturing invoice data in a digital format, usually through scanning or capture methods such as optical character recognition (OCR).
- Digital Workflow: Accounts automation will then manage the coding and routing of the invoice through the digital workflow, which functions based on specific logic configured in the organization's accounts payable automation software.
- Visibility & Reporting: Accounts payable automation significantly reduced the risk of fraud by giving management and AP staff unprecedented visibility and reporting capabilities into the flow of invoices and transactions across the organization.
- Cost Savings: Accounts automation can provide significant cost savings for the organization beyond the expected savings from eliminating manual tasks. Companies can optimize their vendor portfolio, avoid duplicate or erroneous payments, and take advantage of early payment discounts.
How to Automate Accounts?
Accounts Payable Automation works differently depending on the supplier invoices.
- Indirect spending: The accounts payable automation solution supports automatic invoice data capture, coding, and assignment of invoice approval to the appropriate stakeholder within the organization.
- Direct spending: The accounts payable automation solution automatically matches the invoice data to the purchase order and directly sends the invoice for payment. This workflow is referred to as "touchless invoice processing" and is the end goal of automation in accounts payable.
Benefits of Account Automation
Account automation provides benefits not just for the finance department but across the entire organization:
- There are no need to store paper-based invoices and delivery cost receipts
- Reduced manual efforts as there is no need for multiple employees to spend time investigating invoice errors and handling vendor complaints
- Invoice audits and compliance efforts are more manageable
- Built-in security and accountability features can flag suspicious activity, helping to detect invoice fraud
- Paying vendors on time enhances your reputation and helps you in future negotiations with vendors
- Staff can be redeployed to perform higher-value tasks, such as analyzing invoice payment data, instead of spending their time on manual invoice data entry
