Why You Should Automate Your AP Process
Accounts Payable (AP) has always been a bit of a headache. For years, frustrations like repetitive data entry, lost invoices and endless piles of paperwork were accepted as part of the job. But not anymore.
AP Automation addresses all these issues by replacing paperwork with digital invoices and smart AI technology. It cuts invoice processing times from days to hours and brings a whole list of other perks, which we’ll dive into.
In this article, we’ll talk you through the benefits of going paperless with Accounts Payable automation.
Saves Time
AP automation saves you time by replacing manual processes. It uses AI to automatically populate invoice details and match to the corresponding purchase order for you.
That means no more entering the invoice details one by one and searching through purchase orders to find the matching PO. AI does most of the work for you, all you have to do is review the information, make any adjustments and post.
Bringing the whole process online also makes approvals easier, no more messing around passing paper invoices back and forth for sign off. The approver receives a notification and can review and approve the invoice digitally, no matter where they are.
According to data from IDC, the typical AP process involves spending 9-24 minutes per invoice. If you’re processing 500 invoices per month, that’s up to 200 hours which could be spent on more valuable tasks!
Unlocks Efficiency
Automating your Accounts Payable process allows you to get more done in less time, freeing up your team members to work on higher value tasks.
Realigning staff away from repetitive and tedious tasks results in a more motivated, productive and fulfilled team. With more efficient processes, you’ll also be ready for growth and increased demand, without being forced to increase headcount.
The option to work from home is an expectation now for many working people. AP Automation helps you work towards a paperless office, which is not only good for the environment, but it makes remote working easier too. With everything done digitally, you no longer need staff to be in the office to receive, process and approve invoices. As a result, you’re able to offer hybrid working arrangements, without compromising efficiency.
Improves Accuracy
AI inputs data more accurately because it’s much less likely to accidentally hit the wrong key or get numbers the wrong way around.
On the other hand, humans are more prone to making mistakes, especially when working on the same task for long periods of time or getting distracted by phone calls and emails. By replacing manual processes with automation, you improve accuracy and reduce mistakes.
Duplicate invoices can easily be missed by a human and accidentally paid twice. But with AP Automation, AI technology quickly compares the invoice to existing documents in the system. If there are any duplicate invoices, the system will flag them for you to review, preventing you from processing it twice.
It can also prevent fraud by flagging suspicious activity, monitoring changes to payment details and validating data against your existing supplier information. Restricted access through user roles and permissions also adds extra layers of security for peace of mind.
Saves Money
By taking less time to process invoices, you’re able to get them paid faster. That means less late payment fees and more early payment discounts.
Paying invoices on time strengthens your relationship with suppliers. When your suppliers trust you to pay on time, you’re more likely to receive favourable payment terms and loyalty discounts. That could mean saving even more money!
AP Automation can also save you money by taking up less space for storing paper invoices, reducing off-site storage costs, and reducing paper, postage and printing costs.
Interested to see how much you could save? Use Sage’s calculator to see how much you could save with AP Automation.
Provides Full Traceability
AP Automation tools store all your supplier invoices in one place, so they’re easier to find and you’re less likely to lose an invoice altogether.
Paper invoices are much harder to keep track of. They can easily be left in someone’s desk drawer or buried in a pile of other paperwork. Lost invoices can lead to forgetting to pay an invoice, missing the deadline and being hit with a late payment fee. It’s also more difficult and time-consuming to investigate any invoice queries you might receive.
When all your invoices are stored securely in the cloud, you can find out the status of an invoice anytime, answer invoice queries faster and let go of the burden of storing paper invoices.
Sage Intacct AP Automation
If you’re looking for one solution to all your Accounts Payable needs, the AP Automation module for Sage Intacct could be the solution for you.
It’s built into the Sage Intacct platform, so everything is in one place. Meaning you don’t need a separate system, with different logins, user licenses and setup fees, even if you manage multiple entities.
Here’s what makes it stand out:
- Connects your AP and purchasing workflows seamlessly
- Industry-leading 95% supplier match accuracy
- Minimal setup, just turn it on and off you go
- Continually learns from your input and gets smarter each day
- Automatically processes invoices sent to your dedicated email address
Even with AP Automation, you’re always in control. Nothing will be posted without your review first, so it’s a low-risk way to take advantage of automation for your business.
Read our project spotlight to see how AP Automation transformed the AP process for our client.
“We implemented the Sage Intacct AP automation which has just streamlined the whole Accounts Payable team… As we continue to grow the AP solution will be a critical component of us being able to maintain the same level of service.”
Sarah Janowicz, CFO at Cambio Communities
Summary: Benefits of AP Automation for Your Business
In a nutshell, AP Automation replaces error-prone manual processes with smart AI technology, which brings many benefits, including:
- Saves time: Automatically populates invoice details and matches to the corresponding PO for you.
- Unlocks efficiency: Allows you to get more done in less time, freeing up staff for other tasks.
- Improves accuracy: AI inputs data more accurately than a human can, minimising mistakes.
- Saves money: Invoices get paid faster, meaning less late payment fees and more discounts.
- Full transparency: Everything is stored securely in one place, so you’re less likely to lose an invoice.
Any size business can benefit from AP automation; it’s not just for large organisations with big budgets. There are plenty of options available, regardless of whether you’re using Sage 200 or Sage Intacct.
If you’d like to discuss AP Automation for your business, let us know via the enquiry form on this page. We’ll discuss your needs and arrange a live demo, so you can see if it’s right for you.
New to Sage? Complete the enquiry form to discuss your needs with our experts.
