Accounts Payable (AP) processing is a critical function for any organization, but it can also be time-consuming and prone to errors. Automation can help streamline AP processing, reduce errors, and improve efficiency. In this blog post, we will discuss how much of current AP processing can be automated and the benefits of automation.
Invoice Processing: Invoice processing is a time-consuming task that can be automated. With the use of Optical Character Recognition (OCR) technology, invoices can be scanned and automatically entered into the AP system. This eliminates the need for manual data entry, reducing the risk of errors and streamlining the AP process.
Purchase Order Matching:Purchase order matching is another task that can be automated. With automated matching, the AP system can automatically match invoices to purchase orders and receipts. This ensures that invoices are accurate and reduces the risk of overpayments or duplicate payments.
Payment Processing: Payment processing is another task that can be automated. With the use of electronic payment methods such as Automated Clearing House (ACH) or wire transfers, payments can be processed automatically. This eliminates the need for manual payment processing, reducing the risk of errors and improving efficiency.
Approval Workflows: Approval workflows can also be automated. With automated workflows, invoices can be automatically routed to the appropriate stakeholders for review and approval. This ensures that invoices are approved quickly and reduces the risk of bottlenecks in the AP process.
Reporting and Analytics: Finally, reporting and analytics can be automated. With the use of AP automation software, organizations can generate reports on AP processing and identify areas for improvement. This data can be used to make informed decisions and optimize the AP process.
In conclusion, a significant portion of current AP processing can be automated. Invoice processing, purchase order matching, payment processing, approval workflows, and reporting and analytics can all be automated, improving efficiency and reducing the risk of errors. By automating AP processing, organizations can reduce costs, improve compliance, and free up staff to focus on more strategic tasks.