These days, if you’re running an in-house accounting team and not utilising invoice automation software, you’re likely a step behind competitors. Accounts payable (AP) can involve hours of paperwork and staff resources better spent elsewhere, which is why many companies today use AP automation software. A Markets and Markets report claims that the market for AP automation software is expected to expand rapidly, reaching an estimated £3.1 billion by 2024 - a jump from the current £1.9 billion.

As the economy is projected to turn towards recession through 2023 and 2024, financial leaders in your organisation are going to look for opportunities to manage costs. Improving AP process efficiency is one of the ways AP departments can contribute to cost control, allowing existing staff to process more invoices and reduce the cost of invoice errors and fraud.

Firstly, it can be helpful to have some information about how AP automation works. Although the specific features may vary depending on your requirements and the software you select, there are some key features that top-notch AP automation software in the UK offers today. In the most basic sense, accounts payable automation is a method of reducing the reliance on human involvement in AP processing, streamlining various tasks such as invoice preparation, monitoring overdue payments, and much more.

There are several ways AP automation software can benefit businesses, the first being eliminating human errors that often occur during the manual automation process. Some of the other benefits include:

• Reduces the risk of fraud: Utilising AP automation software reduces the likelihood of your company falling victim to fraud by securely storing all your vital accounting information in one place and automating processes that could otherwise be susceptible to internal or external attacks.
• Improves control over payments: With the automated processes offered by accounting and payroll software, you'll never have to worry about checking payment schedules and missing a payment. Everything is automated, providing greater control and oversight of the accounts payable process.
• Provides insight into spending: If your business aims to streamline its spending, the right accounting software will offer visibility into your spending patterns.  Regular tracking and detailed reports will show you where your money is being allocated and identify areas where you can cut back.
• Improves cash flow management: Accounting software allows for easy regulation of your cash flow management processes, ensuring that you always have sufficient funds in the bank to pay your staff or initiate payroll requests.
• Streamlines invoice approvals: By detecting any issues before sending out emails or payment requests, you can streamline the approval process and eliminate any unnecessary back-and-forth due to unexpected errors.

If you're wondering how accounts payable automation can benefit your AP department, it offers advantages such as timely invoice processing, improved efficiency, and increased accuracy. Moreover, with the appropriate AP software, your team will have complete oversight of all pending invoices, as well as your company's spending and cash flow management practices. As these processes are automated, your AP department will spend less time on manual tasks and can concentrate on other crucial aspects of your business.

When it comes to choosing the appropriate AP software for your business, there are several factors to consider. The key components of AP automation software to bear in mind include selecting one that:

• Supports all of your business's invoice-processing procedures
• Offers end-to-end automation
• Saves time and improves efficiency, leading to cost-savings
• Provides seamless integration with your ERP system & accounting software
• Includes compliance enforcement procedures
• Provides enhanced visibility into AP spend
• Offers real-time dashboards Reduces risk through more stringent workflow controls
• Leverages AI to expedite data entry

Accounts payable automation software can assist you in eliminating numerous manual tasks associated with AP processes, leading to cost reduction, enhanced oversight, streamlined invoice approvals, improved cash flow management, and fraud prevention. Selecting the appropriate software is essential, and you should consider solutions that cater to all your necessary workflows, meet your compliance requirements, facilitate integration with your ERP and accounting software such as Microsoft Dynamics or Netsuite, and leverage AI to expedite data entry.