Accounts Payable Automation Technology in 2023
As businesses strive to become more efficient and streamlined, many are turning to accounts payable automation technology. This article will explore the benefits of AP automation technology in 2023 and how it is transforming the way businesses operate. What is Accounts Payable Automation Technology (APAT)?
Accounts payable automation technology, or APAT for short, is software that automates the accounts payable process. This helps companies save time and money by reducing manual administration and increasing efficiency, which reduces costs across the board. It also allows individuals to focus on higher-value tasks within their workflow. AP automation software will be implemented across more companies and industries in 2023 as business leaders see the benefits it brings to their company's workflow.
The Accounts Payable Process
The Accounts Payable process involves a number of steps that should be completed for a company to be able to effectively manage their vendor relationships and cashflow.
Usually, when an invoice is received from a vendor, the AP clerk manually enters the details into an accounting system, which is then sent to a manager for approval and payment scheduling. An invoice matching report can also be produced to ensure that the company is not accidentally paying for duplicate invoices. Once the invoice matching has been verified, the finance department will review the invoice to ensure that it is valid and will send out payment via an electronic check, bank transfer or credit card. APAT can help by adding automation to each one of these steps.
How will APAT Change the Accounts Payable Process in 2023?
At the moment, AP automation technology is becoming widely accepted within the business world. In 2023, this trend will have clearly been established and new companies entering the market will look to technologies that integrate with their existing accounting solutions. APAT will cut down on time spent processing invoices by allowing companies to automate some, or all of these time-consuming tasks. For example:
Organising and storing invoices for efficient processing
One way that APAT can help to save time and money is by organising and storing invoices for efficient processing. When all of your invoices are neatly organised and easy to find, it makes it much simpler for Accounts Payable clerks to quickly locate and process them.
This can be done in a variety of ways, such as by using a scanning system such as Webexpenses that reads the invoice and automatically enters the details into the accounting software.
Payables approval process management
APAT can help speed up the approval process for payments. By automating tasks such as invoice matching and verifying that the invoice is valid, businesses can reduce the amount of time spent by managers on these processes, allowing them to focus on other tasks within their workflow.
In addition, some AP automation technologies allow for online approvals, which means that approvals can be given from anywhere at any time. This is a great option for businesses with multiple locations or those who have employees who work remotely. Companies that implement APAT in 2023 can expect to save time, money, and resources by reducing the number of manual processes that allow them to operate.
What are the Benefits of Accounts Payable Automation?
APAT, like Webexpenses is helping businesses across the board become more efficient and streamlined. Some of the most common benefits include:
Greater invoice accuracy
One of the most important benefits of APAT is that it helps businesses to achieve greater invoice accuracy. This is because AP automation software can automatically detect and key in data on the invoice itself, as well as match invoices with purchase orders and contracts. This reduces the chances of an invoice being paid incorrectly and the risk of duplicate invoices being entered into the system.
Less dependency on manual processes
APAT can automate tasks such as invoice organisation, data entry, and invoice approval. This leads to a more efficient accounts payable process and less dependency on manual tasks.
Faster processing time
APAT can help businesses speed up the processing time of their invoices. This is because AP automation software can automatically detect and key in data based on both templated invoice layouts through a process called Intelligent Character Recognition.
Eliminates unnecessary costs associated with vendor errors and/or inconsistencies
One of the most common causes of unnecessary costs for businesses is vendor errors and/or inconsistencies. These can include incorrect invoice payment, duplicate invoices, and missed discounts. APAT can help to eliminate many of these unnecessary costs by automating the invoice matching and approval process. This means that there will be less opportunity for errors and businesses can take advantage of discounts offered by their vendors.
Reduction of Accounts Payable related expenses
Accounts payable automation technology can help businesses reduce the amount of money they spend on expenses related to the accounts payable department. Many companies have been able to reduce or redeploy AP team members to more valuable tasks, such as vendor performance analysis.
What Do Accounts Payable Automation Companies Predict for 2023?
In recent years, the Accounts Payable process has come under more scrutiny than ever before. With many businesses growing exponentially and competition increasing at a rapid rate, Accounts Payable automation technology is becoming more of a necessity than an option:
- AP automation solutions will continue to get smarter and drive change in the finance department. By embracing technology finance leaders can create a more optimised and streamlined financial management team.
- AP Automation software will adapt to the needs of individual companies by expanding its features to accommodate future changes in technology.
- APAT will be implemented across more industries besides retail, including manufacturing, healthcare, services and wholesale distribution.
How is NetSuite Accounts Payable Automation Changing Workflows?
The Accounts Payable workflow is evolving and adapting quickly in order to keep up with changes in technology and business operations. APAT is taking the Accounts Payable process into the future by using advanced data processing, transaction and matching algorithms to eliminate unnecessary costs and errors, as well as speed up Accounts Payable processing time.
The Challenges of Implementing Accounts Payable Automation Technology
The challenges of implementing APAT continue to be a deterrent for some Accounts Payables teams. One of the main challenges is the cost of implementation, which can be a barrier for some businesses. However, many vendors have been able to streamline the delivery of their solutions, making it much more affordable than legacy AP solutions.
In addition, some companies may find it difficult to retrain their staff to use the new software. There is also the challenge of getting all departments in a business to work collaboratively using the new technology. APAT will lead to changes in Accounts Payable and Accounts Receivable workflows and it is important for businesses to ensure all employees are on board with the new technologies.
How to Choose the Right NetSuite Accounts Payable Automation Solution for Your Business?
As APAT changes business processes, Accounts Payable teams are faced with the challenge of selecting the best AP automation solutions to fit their business needs. Some considerations when choosing AP automation software include:
- Does the solution integrate with your existing ERP or accounting software?
- Are the transaction matching algorithms strong enough for your Accounts Payable process and vendor invoice complexity?
- How much will an APAS software cost relative to more manual AP department processes?
- Is Accounts Payable automation within your budget?
Conclusion
The use of automation technology in Accounts Payable is on the rise and is expected to continue growing through 2023. The benefits of automation include faster processing times, improved accuracy, and reduced costs.
Businesses that have not yet automated their AP process are encouraged to do so as soon as possible to take advantage of these benefits. Automation offers a number of advantages for businesses of all sizes, and the sooner you implement it, the sooner you will see results.
If you are unsure about how to get started with
NetSuite accounts payable automation or would like more information about our
NetSuite Managed Services, please
contact us today. We are happy to help.
Henry Sack
General Manager
With over 12 years of experience as a NetSuite implementation consultant, Henry Sack leads TeamBlueSky’s team of NetSuite and accounting experts in his role of General Manager.
TeamBlueSky is a leading Australian
NetSuite Alliance Partner whose mission is to provide critical
NetSuite BPO and
Payroll services to NetSuite clients who are wanting to simplify their
back office processes and partner with a leading
NetSuite administration expert.
TeamBlueSky have also partnered with global Suite Developer Network partners to offer local solutioning, implementation and support services for global NetSuite SuiteApps.
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