Your business’s accounts payable (AP) process is one of the most impactful areas of its operations. An inefficient AP process can result in numerous issues that can trickle down to affect your bottom line in significant ways.
For example, if your business’s AP process is not running smoothly, your accounts payable team is more likely to lose invoices or process them late, enter data incorrectly, waste time struggling to find invoices or other necessary data, and more.
Not to mention, a disorganized accounts payable system can negatively affect your business’s relationship with suppliers.
Problems like these add up over time. Maintaining an efficient accounts payable process is crucial for running a successful operation in any industry, Fortunately, automated invoice processing solutions can help businesses improve their AP efficiency in many different ways.
Manual methods of processing invoices usually involve large numbers of routine steps that keep accounts payable employees away from more strategically valuable tasks. You can use an AP automation platform to complete many of these routine tasks automatically, freeing up employees’ time and enabling them to focus on tasks that automation can’t handle.
For example, you can use invoice automation solutions to automatically receive invoices, route them for approval, deliver payments, reconcile invoices, and much more.
You can automate most of the data-entry steps in the AP process using AP automation, meaning accounts payable team members would no longer need to input data manually. Automating data entry can save a great deal of time, and the process remains secure because the automation still requires manual approvals from the correct people in order to progress past critical points in the process.
In addition, many AP automation platforms include analytics tools to help accounts payable teams diagnose issues and manage the accounts payable process more efficiently. Dashboards and other analytics features can provide improved visibility that leads to more valuable data-driven insights about your accounts payable process.
How to select the best AP automation companies?
There are multiple kinds of AP automation solutions you can choose from. Some tools offer very specific solutions, whereas others offer broader solutions that could apply to a wide variety of industries or scenarios. It’s very important to take stock of your company’s accounts payable needs and consider which problems you want to focus on solving.
Different AP automation companies provide different kinds of invoice automation software. Most companies that provide accounts payable automation solutions do so using traditional data capture methods.
Typically, these kinds of solutions rely on optical character recognition (OCR) technology to analyze documents like invoices. OCR automatically “reads” the document by scanning the document for text and recognizing specific data fields using image or text-based templates.
Traditional OCR technology has been around for a while, and it’s usually very successful at automating document processing when the documents are arranged in the same format every time. This enables optical character recognition to use a predetermined template to understand where to look for each important piece of information on the document.
However, many kinds of documents (like invoices) do not use the same format every time. Your accounts payable team likely receives invoices in many different formats from a wide range of different suppliers.
What Accounts Payable software should you use?
While OCR technology is significantly limited when it comes to processing variable document formats, other kinds of accounts payable software can provide the solution.
Rossum takes a different approach to accounts payable software for large businesses and smaller businesses alike. Instead of focusing on traditional software for accounts payable and receivable departments, we offer a unique data capture solution powered by AI that you can leverage to boost AP efficiency considerably.
Rossum’s data capture automation is designed to analyze information in a document more like a human would — not according to a rigid set of rules, but by skimming the document and narrowing down the locations of the most important information in a non-linear way.
Once the Rossum’s AI engine determines where these critical pieces of information are located on the page, it employs precise reading strategies to identify the boundaries of the important information and accurately transcribe the text.
This type of intelligent document processing (IDP) can serve as particularly effective accounts payable software for banks or other kinds of organizations that have vast and complex accounts payable needs.
Rossum’s solutions are ideal for processing documents like invoices that may vary significantly in formatting from case to case. Any organization that works with a large number of suppliers likely receives many different styles of invoices, which makes finding the best accounts payable software a higher priority.
What’s are cloud-based Accounts Payable solutions?
Many modern examples of accounts payable software for large businesses are cloud-based. Cloud-based accounts payable solutions have a few distinct advantages over on-premise AP solutions.
Accounts payable automation solutions are usually much less expensive to compliment than on-premise solutions. Traditional accounts payable software that are not cloud-based often requires a great deal of time, resources, and effort to install manually.
By contrast, cloud-based solutions are typically hosted by third-party AP software companies, meaning there is far less setup involved for the customer.
Accounts payable teams can access and manage cloud-based accounts payable solutions from anywhere they have an internet connection. This makes cloud-based AP software useful for teams that are based in various geographical locations, teams that travel frequently, companies with a hybrid work environment, and more.
Cloud-based accounts payable solutions are also generally more scalable than on-premise solutions. Traditional solutions that are installed on-premise often require the business to purchase and install additional hardware or software to support growth.
However, cloud-based AP solutions can scale with your business, which means you can keep using the same familiar tools even as your supplier list expands.
Cloud-based accounts payable solutions also often make it easier to track and analyze the data your accounts payable team collects. Better finance data insights can lead to numerous business benefits that would be more difficult to achieve with on-premise AP software.
What is a vendor invoice management system?
There are many kinds of inefficiencies that could potentially slow down your AP team’s vendor invoice approval process. These inefficiencies might stem from only minor errors or small bits of lost time, but inefficiencies that appear inconsequential in isolation can add up over time and result in serious repercussions for a business’s bottom line.
Some of the most common issues that occur throughout the invoice management process include the following:
- Invoices become lost part of the way through the process
- Invoices being processed late
- Invoices missing their required purchase order numbers
- AP team members are struggling to locate or access the invoice data they need
One of the most effective solutions to issues like these and many more is automated invoice approval software. There are many different kinds of software tools you can use as part of your vendor invoice management system.
Some of the best invoice management software uses AI to streamline the accounts payable process. For example, you can use Rossum’s intelligent document processing technology to accurately capture data from invoices regardless of the format in which your team receives them, enabling you to process invoices much more efficiently.
What’s the best automated invoice processing software?
Finding the best-automated invoice processing software is usually a matter of identifying what is holding back your accounts payable process and locating solutions that address those specific needs.
There may be multiple kinds of tools or technologies that could benefit your accounts payable process. It’s important to conduct a thorough invoice processing software comparison to determine the best selection of AP solutions to meet your needs.
One of the most universally valuable types of accounts payable solutions is intelligent document processing technology. Rossum’s AI is capable of assessing invoices much like a human would rather than remaining constrained to a very specific set of rules based on a template.
Instead, Rossum’s automated software solutions make it possible for AP teams to extract data from multiple invoices that appear in different formats. This can greatly expand a business’s ability to scale efficiently and process large numbers of invoices from a range of different suppliers.
What’s the best AP automation software for small business?
Many small businesses may have some unique factors to consider when choosing the right accounts payable software. For example, the cost is even more of a concern for small businesses, which often have tight budgets.
Small businesses also typically have smaller teams and may lack in-house IT support, meaning the software probably needs to be easy to implement. There are many kinds of AP software that could meet the unique needs of small businesses, but it’s important to take those needs into account during the decision-making process.
The best accounts payable software for small businesses should address the limitations of a small business, including a smaller budget and smaller team, and also leave room for business growth. This is where a cloud-based solution can be useful.
Some of the best AP automation software for small businesses is cloud-based because this allows the solution to scale alongside the business rather than limit its growth.
- 2-way matching in Accounts Payable
- 3 way matching in Accounts Payable
- Accounting automation software
- Accounts Payable Automation software
- Accounts Payable Automation solutions
- Accounts Payable cycle
- Accounts Payable procedures
- Accounts Payable process
- Accounts Payable process flow
- Accounts Payable process steps
- Accounts Payable processing
- Accounts Payable workflow
- AI automation platform
- AP automation software
- AP automation workflow
- Automation in insurance
- Claims process automation
- Claims processing automation
- Data entry automation
- Document automation
- Intelligent Process Automation
- OCR automation
- Workflow automation tools