Top 15 benefits of accounts payable automation
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If you ask businesses of all sizes what their key goals are when it comes to accounts payable, you will likely hear "save time" and "save money," while also preventing fraud. Yet, most companies today still use manual accounts payable processes despite the distinct benefits of automated accounts payable (AP). Accounts payable automation tools create efficiencies across the board that deliver lasting business and financial value.
How can accounts payable automation software be more efficient?
When you eliminate manual data entry and reduce errors, your AP process becomes instantly more efficient. AP automation solutions also enable secure payments and simple online approvals while generating an easy-to-follow audit trail, which you'll feel the value of both now and down the road.
By switching from manual to automated and eventually to autonomous, the entire accounts payment process becomes more efficient and effective.
What is automated accounts payable?
In a nutshell, accounts payable automation engages the latest cloud-based technology to reduce manual accounting tasks, streamline business operations, improve accuracy, and enable custom control over critical financial processes.
Accounts payable automation tools make it easy for your AP team to submit invoices and process payments through a single platform—all of which can save time and money.
The benefits of accounts payable automation
The benefits of automated accounts payable are significant and they start with the two classic requests from accounts payable:
Accelerating AP workflows
Accounts payable automation software is a game-changer when it comes to efficiency. By eliminating manual data entry and reducing errors, AP software transforms the accounts payable department into an instant asset to the greater business. Secure payments, simple online approvals, and an easy-to-follow audit trail are just a few ways that AP automation streamlines the accounts payment process.
How AP automation saves time:
- Eliminates manual data entry and duplicate tasks
- Enables automatic invoice routing and approval workflows
- Provides digital audit trails for faster reconciliation
- Reduces bottlenecks caused by paper-based processes
- Enables remote approvals to speed up cycles
Cost savings
Accounts payable automation delivers measurable financial savings across the entire invoice-to-pay process. Manual processes, particularly those associated with data entry, storage, and postage, can be expensive and require an inflated headcount. Automation reduces these costs and ensures payments are always made on time, which also helps avoid late payment fees.
Where you save:
- Reduced paper, postage, and printing costs
- Lower processing costs up to 80% savings per invoice
- Fewer late payment fees through timely approvals
- Headcount efficiency from less manual handling
- Ability to capture early payment discounts
Fraud detection
Fraud is a significant concern for businesses, with billions lost annually. AP automation helps safeguard financial operations through tighter controls and real-time monitoring.
Fraud protection benefits:
- Flags duplicate invoices and suspicious vendor activity
- Monitors changes to payment details
- Restricts system access by user roles and permissions
- Reduces risk of manual input errors that lead to fraud
- Provides audit-ready logs and version control
Your supplier changed banks… or did they?
One of the most common (and costly) types of fraud is deceptively simple: a fake request to update supplier banking info. Without the right safeguards, it can slip through even the most experienced teams.
In this on-demand session, AP and fraud experts break down:
Real-world fraud tactics (and how they work)
AP automation tools that flag and prevent changes
What to do when you’re not 100% sure
Improve accuracy
Accounts payable automation tools reliably reduce errors and bolster accuracy. The software eliminates manual data entry and validates data against ERP systems, making duplicate or erroneous payments easy to detect and prevent. This also ensures financial reporting is more reliable and compliant with internal standards.
Increase productivity
Eliminating manual work naturally boosts productivity—not to mention employee morale—across the company. Automatic routing and validation reduce errors and give your finance team more time to focus on higher-value work.
How automation boosts productivity:
- Shortens invoice lifecycle from days to hours
- Reduces back-and-forth between departments
- Minimizes training time for new team members
- Frees up finance staff to focus on analytics and forecasting
Bolster collaboration
Manual processes typically require paper to be placed in a specific location in a particular office, —which is hardly convenient for today’s global, flexible workforce. Accounts payable automation software gives companies total control and access to their AP data and transactions.
AP automation enhances collaboration by:
- Enabling access to real-time invoice status across teams
- Enforcing policy compliance regardless of location
- Enhancing alignment between finance and procurement
- Supporting hybrid or global workforces with cloud-based tools
- Creating shared visibility across business units and vendors
Streamline your process
AP Automation doesn’t just save time and money, it transforms how teams work. By automating tasks such as invoice submission and payment processing, time can be redistributed to strategic initiatives.
Process improvements include:
- Consolidated invoice processing in one platform
- Automation of payment scheduling and reconciliation
- Time savings reallocated to strategic tasks like supplier negotiations
- Streamlined month-end closing and accrual reporting
Full visibility and data transparency
Gain real-time visibility into invoice status and processing activity to track performance and enhance accountability.
Real-time visibility:
- Live status updates on every invoice and workflow step
- Alerts for pending approvals and processing delays
- Improved visibility into cash flow and obligations
Transparent reporting:
- Centralized dashboards and audit logs
- Historical data access for audits and forecasting
- Enhanced transparency for stakeholders and executives
Customized to your business' needs
Tailor AP workflows to match your organizational structure and approval hierarchy.
Customization benefits:
- Route invoices by department, amount, or region
- Configure mobile approval flows
- Customize dashboards and KPIs
- Integrate with specific accounting or ERP platforms
Better supplier relationships
Timely payments and transparency into invoice status contribute to stronger vendor partnerships. Automation minimizes disputes and strengthens business relationships.
Supplier relationship enhancements:
- Pay on time to build trust and loyalty
- Avoid disputes with clear audit trails
- Communicate faster and more consistently with suppliers
- Foster long-term loyalty and better contract terms
Early payment discounts
Automation gives AP teams the visibility and responsiveness to capture early payment discounts consistently.
Discount optimization includes:
- Identify eligible invoices with upcoming discount dates
- Automate payment scheduling based on terms
- Integrate payment timing with cash flow strategies
Enhanced insight
AP automation offers advanced analytics and reporting tools, giving businesses unprecedented visibility into their financial operations.
Insights that drive action:
- Identify invoice bottlenecks
- Track KPIs across departments or vendors
- Forecast cash flow and vendor performance
- Use insights to drive process improvements and working capital gains
Helps ensure compliance
The automated tracking and reporting capabilities of AP automation simplify compliance with financial regulations and standards.
Compliance support includes:
- SOX, GDPR, and local e-invoicing mandates
- Role-based access and change tracking
- Built-in audit trails for external review
- Centralized document storage and retrieval
Promotes scalability
As businesses grow, AP automation ensures your finance operations can keep up without growing pains.
Scalable features include:
- Manage more invoices without expanding headcount
- Support global vendors and currencies
- Configure workflows to evolve with your org chart
- Adapt features to different business units or acquisitions
Scaling AP starts with knowing where you stand
Growth exposes gaps, and AP is no exception. Whether you're processing 500 or 50,000 invoices a month, your ability to scale depends on how mature your processes really are. The Accounts Payable maturity toolkit helps you assess your current capabilities and map a clear path to the next stage of automation and control.
Seamless ERP connections for smarter AP
Medius connects flexibly with your existing ERP environment, supporting your current setup and adapting to changes if your system evolves.
Integration benefits:
- Unified financial data across platforms
- More accurate forecasting and cash flow planning
- Less reliance on IT for change requests or updates
- Reduce silos between finance, procurement, and operations
How to automate accounts payable
You can transform accounts payable and streamline the payment process with a company that provides leading integrated AP automation. Start by booking an AP automation demo, reading customer reviews, and creating a list of your AP needs.
To avoid AP automation challenges, it is critical to find an accounts payable software that makes it easy to transition from manual to a standardized and automated process. IT-reliant custom-built and built-in ERP additions rarely fit the bill. Your business should match its list of particular needs in terms of scalability and services with providers.
Build interest and advocacy within your company by sharing the many benefits of AP automation. Then, you can contact companies that specialize in automated accounts payable solutions to get a feel for their offerings.
What can be automated in accounts payable?
It starts by shortening the business payments cycle, which can lead to early-payment bonuses. You can entirely eliminate paper invoices with a solution that electronically captures, digitizes, and processes them—regardless of format.
Thanks to artificial intelligence in AP, you will gain new data insights and analytics that will support forecasting, planning, and auditing. Speaking of audits, they, too, can be automated with AP automation solutions. All invoice data—from supplier details to payments—will be synchronized across the entire payments lifecycle.
What can be automated in accounts payable? Your company’s entire financial supply chain.
Significant accounts payable savings
add up
While "save time" and "save money" may top the list of needs and wishes when it comes to accounts payable, businesses of all sizes can benefit from a wealth of efficiencies, financial protections, and productivity gains that all result from automated AP software and processes.
With state-of-the-art accounts payable automation from Medius, you can increase efficiencies and decrease exceptions, saving both valuable time and money. Medius can also help you identify and mitigate fraud risks, optimize working capital, and ensure that every invoice is paid on time.
Learn more about the vast benefits of AP automation for your business.
