What is AP Automation Software?
Accounts payable (AP) automation software is a multifunctional tool that assists businesses in optimizing and automating their accounts payable operations. This can involve activities such as processing invoices, matching purchase orders, and reconciling payments. AP automation software has the potential to reduce risk, increase precision, and save time and money for businesses.
AP automation software typically comes equipped with the following functionalities:
- Invoice processing: The software can automatically acquire invoices from vendors, extract critical data, and direct them for approval.
- PO matching: The software can match invoices with purchase orders to verify accuracy and ensure that the appropriate products or services were received.
- Payment reconciliation: The software can cross-check payments against invoices to confirm timely payment and accurate payment amounts.
AP automation software is an advantageous tool for businesses of all sizes. By employing this software, businesses can enhance their accounts payable processes, reduce risks, save time and money, and improve accuracy.
Benefits and Features
AP automation can provide a number of benefits for businesses, including increased efficiency, reduced costs, and improved accuracy.
Save Time
AP automation software can streamline accounts payable procedures such as invoice processing, PO matching, and payment reconciliation, freeing up time for other tasks like negotiating vendor discounts.
Save Money
By minimizing expenses and removing the need for manual data entry and processing, AP automation software can help businesses save money.
Improve Accuracy
With AP automation software, businesses can ensure prompt invoice payments and accurate vendor payments, thanks to decreased likelihood of human errors.
Reduce Risk
AP automation software generates an easily traceable record of all transactions, which helps to safeguard businesses from fraud and financial losses.
CASE STUDY: Accounting Specialist in a Hurry for a PortCo
Choosing an AP Automation Tool
Choosing the right AP automation software for your business depends on your specific needs. Experienced third parties who have helped businesses implement these exact systems are an excellent resource.
Some factors to consider include:
- The size of your business: The size of your business will affect the type of AP automation software you need. Larger businesses may need a more sophisticated solution, while smaller businesses may be able to get away with a simpler solution.
- The volume of invoices you process: The volume of invoices you process will also affect the type of AP automation software you need. If you process a large number of invoices, you will need a solution that can handle the volume.
- Your budget: AP automation software can range in price from a few hundred dollars to tens of thousands of dollars. It is important to set a budget before you start shopping for a solution.
- Integrations: Some AP automation software solutions offer integrations with other business systems, such as ERP systems and accounting software. If you have other business systems in place, you will want to make sure that the AP automation solution you choose can integrate with them.
If you’re not sure how to make this evaluation, it might be a good time to bring in an experienced third party.
READ MORE: Tech Stacks of Companies: How To Choose
Best Accounts Payable Software
While there isn’t one “best” software solution, here are some of the more popular ones:
- NetSuite: NetSuite is a cloud-based ERP solution that includes a number of features for AP automation.
- DocuPeak: Docupeak is a web-based AP automation solution that offers a number of features, including invoice processing, PO matching, and payment reconciliation.: DocuPeak is a web-based AP automation solution that offers a number of features, including invoice processing, PO matching, and payment reconciliation.
- Tipalti: Tipalti is a cloud-based AP automation solution that offers a number of features, including invoice processing, PO matching, and payment reconciliation.
A BluWave-grade expert from our expertly vetted network can help you choose among these and other top providers, saving your time and money.
READ MORE: Outsourced Bookkeeping Services: Third-Party Accounting Help
Matching your specific organization’s needs to the right accounts payable automation software can be time-consuming. The risks of choosing the wrong providers for such an important task are too high to leave to chance.
The Business Builders’ Network is full of proven third parties who have helped countless PE firms, portfolio companies and private and public businesses choose the right partner for this exact situation.
Our research and operations team knows the exact-fit, industry-tailored service provider for your specific situation before you even contact us.
Set up a scoping call today, and you’ll be introduced to of the best options on the market within a single business day.
