Top 10 Features to Look for in Accounts Payable Automation Software

To handle time-consuming manual operations, business finance has embraced technology in recent decades, such as accounts payable automation software. A company's finance teams can benefit from a variety of capabilities included in accounts payable automation software, such as accounting platforms, enterprise resource planning (ERP) tools, and billing portals.

Finding the best accounts payable automation software might be difficult, though, because there are so many resources and features available right now. How can you be certain that you have found the perfect product when there is a vast market available?

We'd like to assist you in making that decision. When deciding which A/P software is best for your company, keep an eye out for the following qualities.

What is software for accounts payable?

A lot has changed in accounting since the days of abacuses and inkwells. Nowadays, books are rarely used in bookkeeping. A/P software frequently refers to a collection of programmes or devices that let users manage or regulate many aspects of the accounts payable process, as opposed to just one tool. These duties could include anything from accepting, following up on, processing, or paying incoming invoices.

Therefore, A/P software would include an ERP instance used to update your general ledger or balance sheet after receiving a bill. Or it would also count if you made use of a programme that controls ACH transfers between you and your suppliers. Additionally, even though this software typically does the job for you, some products still call for human effort, such as data entry or comparing paper invoices with purchase orders.

What is software for automating payments?

A/P automation software, on the other hand, refers to a particular set of A/P tools made to minimize the quantity of user interactions (or touches) needed. Basically, the application takes care of a lot of the duties that were previously handled manually through accounts payable workflow automation.

In other words, AP automation software may provide optical character recognition (OCR) capabilities that enables you to scan a record and feed the captured data directly into your ERP system, as opposed to manually keying in information from receiving invoices. Stop entering data now. Or a workflow that is entirely automated would handle account and purchase order verifications instead of requiring human input to move bills through the payment process.

Why use software for AP automation?

Simply said, automating your accounts payable process makes life simpler for your accounting team. You may concentrate your staff's time and attention on more important decision-making responsibilities while still feeling certain that your payment processes are being handled effectively by outsourcing the busy job to technology.

Further ways automation can benefit your organisation include:

Avoid manual transcription to reduce errors.Simplify procedures and invoice verification to speed up paymentsReduce the likelihood that data can be manipulated to prevent fraud; - Simplify reporting and auditing with traceable metadata that tracks a bill throughout the entire process; - Allow for expansion without adding more staff.Promote early payment discounts more frequently.By removing boring and repetitive duties, you can increase employee happiness.

What qualities should AP automation software have?

Your company's needs will vary depending on a number of variables, including its size and the complexity of its A/P procedures. Make a map of your current operations and any potential difficulties before you start your search (ideas on how to do this can be found in our article on how to automate accounts payable).

When you have these insights, you can start exploring for an accounts payable automation software solution that has the functionality you need. Of course, you may need to consider more than one instrument to cover your full A/P process based on your needs.

Make sure you're looking for platforms that provide access to a demo or trial version of the software so you can thoroughly analyse it before you buy. This will help you narrow down your selections even further.

Having said that, there are a few common characteristics you should search for, such as:

Flowchart generator

An efficient workflow engine is essential if you wish to automate your A/P procedures. Pick one that enables you to create process maps that are in line with your corporate policies. Or, even better, look for a solution that comes with pre-packaged workflows that you can modify to suit your requirements.

Data collection

You'll need some type of document imaging, capture, and extraction capabilities if you wish to automatically transform your paper files into electronic information. Usually, this capability will work with your scanner to transform the raw image into useful data that can be shared with your ERP platform using OCR.

Separating the invoices

In an ideal scenario, each of your vendors would give you an invoice on their own in the same format. However, in practise, a supplier might send you several bills at once. Additionally, all of these pages might be scanned in as a single document depending on your data capture procedures. The system can independently detect and individuate these records with an automatic invoice separation tool, allowing them to proceed through the process correctly.

Three-way matching of purchasing orders

As was already noted, one of the major benefits of A/P automation software is the simplification of the incoming bill verification procedure. Look for a platform that offers three-way matching when selecting one, which checks that the information on any invoice matches the relevant purchase order (PO) and items received note (GRN). Before making a payment, make sure all three documents agree. This will greatly decrease the possibility of fraud.

You should also include non-PO matching in your solution for expenditures that don't come from purchase orders, like utility payments (or contract matching).

Controls for approval

You'll need tools in place that enable financial leads and other decision-makers to approve planned transactions in addition to verification capabilities. This authorization method ought to relate to the overall workflow of the process, alerting staff when approval is required and automatically moving the invoice to the following stage after it has been verified.

Batch operation

When you can complete tasks simultaneously, why do them one at a time? You may manage and set up controls for your invoices using batch processing as opposed to one-by-one. Your company can create a more cohesive A/P schedule by managing these invoices collectively, enabling you to combine several invoices into a single payment. Additionally, you can more simply set up regular payment dates and timings.

Advanced lookup

You'll be in a lot better position to take advantage of analytics and other pattern identification activities once all of your A/P records are now in a digital format. And whatever platform you use for accounts payable, it should ideally offer you sophisticated search tools that make it simple to locate any specific transaction or document in your growing data stores.

Access based on roles

Limiting access to crucial systems is one of the components of successful IT and data security, and there are few areas more crucial than your company's finances. Role-based controls can help you better isolate and limit these sensitive behaviours to stop potential fraud. For instance, you wouldn't want the same employee in charge of authorising payments and adding new vendor listings. It is significantly more difficult to create a dummy account when these tasks are separated.

Capabilities for integration

Additionally, you want your new automation platform to work well with the rest of your current back-office systems. Additionally, integrating with these other platforms will be made easier by an application programming interface (API), which is a group of protocols and routines that specify how a piece of software communicates.

Sharing of real-time data

Decisions can be impacted by outdated facts. Find a platform that provides two-way, real-time communication between your ERP system and your A/P platform. Your personnel will be in a much better position to make wise, educated decisions about your payment processes if they have access to reliable, current data. Furthermore, your company will find it easier to adopt corporate performance management and enterprise-wide analytics initiatives with this level of data sharing.

A/P Automation Software That You Can Rely On

While selecting the ideal platform for your company may need some initial effort, you'll be considerably pleased if you select a system that can appropriately meet all of your pressing needs.

At Work 365, we take great pride in providing all of the aforementioned capabilities as well as more through automation for accounts receivable, accounts payable, and a business network that offers a more straightforward, secure, and efficient way to send and receive invoices.

Work 365 is a recurring billing in Dynamics 365 and cloud billing software for Microsoft partners to streamline billing and invoicing processes.