Accounts Payable Automation: A Comprehensive Guide

November 16, 2023
Everything You Need to Know about Accounts Payable Automation
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Accounts payable (AP) automation has become an essential tool for finance departments. It eliminates manual aspects of AP and automates them through dedicated software, making the whole process faster and efficient. In this guide, we will explore the concept of accounts payable automation, what it means, and how it can benefit your business. We will also examine Kloo's product and highlight the importance of automating accounts payable. Let's dive in and discover how streamlining your financial workflow can bring a new level of reliability and efficiency to your business. With Kloo, you can automate your AP process, match invoices with ease and pay your vendors on time, creating an optimised workflow for your AP department. 

What is AP automation? 

AP automation is a process where manual aspects of the AP are eliminated, and instead, automated tools or processes are used. This automation is achieved by incorporating dedicated software that submits and approves purchase orders and invoices digitally, rather than through physical means. In some solutions, the software reads invoices and extracts information, which means no data entry for anyone on your team. Examples of tools used in the automation process include optical character recognition (OCR), a form of scanning or capturing method that captures invoice data in digital format. After this, the AP system classifies, matches, and validates data and forwards it to the accounting system for processing. There are many benefits to automating your AP process, including significant cost savings, minimised risks of error or fraud, and improved control over how suppliers are paid. 

AP automation provides enhanced visibility into spend, thereby improving cash flow management and giving businesses control over their vendor portfolio. Process automation ensures that businesses can optimise vendor payments, reduce fraudulent payments, and take advantage of early payment discounts. In brief, the AP automation process streamlines the entire workflow, from generating and approving purchase orders and invoices to processing and payments. Businesses that automate their AP processes experience significant improvements in efficiency, accuracy, and productivity. 

Why does your business need AP Automation? 

Let's face it - the traditional AP process is cumbersome and time-consuming. It involves dealing with paper invoices, manually entering data, chasing approvals, and processing payments. This can lead to delays, errors, and unhappy suppliers. Therefore, it's no surprise that businesses are turning to AP automation to streamline their workflows and achieve greater efficiency. By implementing AP automation, businesses can improve spend visibility, which means gaining better insights into their spending patterns, identifying opportunities for cost savings, and negotiating better deals with suppliers.

Additionally, automation allows for better cash flow management, by reducing the time it takes to process invoices and improving predictability in payment timings. Moreover, automating AP reduces the risk of fraud, by implementing controls and checks that flag suspicious activity and enforce compliance. Finally, automation enhances control over how suppliers are paid since there's greater visibility into the AP process, with better tracking and recording of payments, reducing errors and disputes. Overall, AP automation is critical for businesses looking to streamline their workflows, improve financial management, reduce errors, and save time and money. It provides transparency, efficiency, and accuracy, which is crucial for organisations that want to stay competitive and grow. 

Kloo's AP Automation

Kloo's AI-powered AP automation streamlines the entire accounts payable workflow process from purchase orders to payments. This solution provides end-to-end automation capabilities for businesses of all sizes. 

Kloo's product offers several unique features that make it stand out from other AP automation tools. Some of the notable features include: 

  • Digital Invoice Data Capture: The tool can capture digital invoice data and automate invoice validation, approvals, and payments. 
  • Real-time Data Capabilities: The tool's real-time data capabilities enable finance departments to easily track the progress of invoices, ensuring that each process is completed within a specific time frame. 
  • Seamless Integration: Kloo's product offers a seamless integration with popular accounting systems and ERPs, giving AP departments full control of their financial data. 

Kloo's product offers several benefits to businesses looking to streamline their accounts payable process. It can significantly enhance accuracy while also reducing the risk of fraudulent activity by reducing manual error-prone tasks. By leveraging its unique features powered by AI, businesses can significantly reduce manual tasks, increase accuracy, and improve productivity. 

Benefits of AP Automation 

Automating accounts payable offers a range of benefits that improve productivity and accuracy. Real-time data provides a clear view of your financial status while audit trails offer peace of mind about compliance. Automating accounts payable also enhances collaboration by removing physical documents from the workflow. Now, everything is stored in one place, accessible from any device. Eliminating repetitive manual data entry frees up time and resources for other projects. With Kloo's solution, you can turn burly AP processes into a streamlined operation. The solution includes invoice scanning with optical character recognition, automatic matching, verification and posting, and seamless payments integration. These features ensure that transactions are processed quickly and accurately with less risk of human error. Overall, AP automation with Kloo can result in substantial cost savings while improving your financial workflow. 

Key Takeaways 

As we wrap up this discussion on accounts payable automation and the benefits it offers, it is essential to note that this process does not only save time and costs but also greatly enhances accuracy and productivity. With Kloo's product, companies can seamlessly manage their supplier invoices and payments, ensuring better visibility, cash flow management, and reduction in fraud risks. Additionally, the real-time data offered by Kloo's automation software provides accurate insights that help make smarter financial decisions. In summary, automating accounts payable can greatly benefit your business, and Kloo offers an excellent product to achieve that. Take the leap and streamline your financial workflow with Kloo today.

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