Accounts Payable Automation: How to Cut Costs and Improve Accuracy
PaperLess AP Automation
The top choice of Finance Professionals to automate Document Management Processes and Invoice Processing Routines.
In an era of unprecedented efficiency and accuracy in an economy, outdated accounts payable processes are a drawback soon. Sluggish manual invoice processing, isolated approval, and redundant documentation not only slow down finance teams; manual processes also introduce unnecessary cost and invite undesirable risk.
Most companies still employ people to rekey invoice data, manually track approvals through email, and manually reconcile accounts. With more transactions coming in, these inefficiencies add up, with a tendency to lead to late payment, disgruntled suppliers, and higher operating costs.
For companies seeking improved savings, accuracy, and a more productive finance department, accounts payable automation is no longer a luxury; it is a necessity that needs to be fulfilled. Whether your finance department operates on Sage, SAP Business One, Xero, or another leading system, automation software today integrates with ease to automate every step in your AP process.
What Is Accounts Payable Automation?
Accounts payable automation utilises technologies like AI-powered OCR, automation of workflows, and integration of ERP systems to automate the payment-to-invoice process.
Instead of keying in data via spreadsheets and manual entry, an automatic system records invoice details as and when you import it, checks it against purchase orders, sends it off for authorisation, and journals it to your finance package. If you use Sage 50, Sage Intacct, Sage 200, Sage Evolution, SAP Business One, or Xero, integration imports all invoice documents and approvals directly into your finance package without keying.
This ongoing cycle minimises human mistakes, accelerates processing time, and offers real-time reporting on your payables, without requiring additional headcount or significant modifications to your accounting infrastructure.
Why Automate Your Accounts Payable Process?
Legacy accounts payable processes are slow, back-office, and costly. Data entry errors lead to duplicate or erroneous payments. Paper invoices get lost, approvals are made after days or weeks and attract late payment fees and damage supplier relationships.
These issues collectively prevent finance teams from making strategic choices over the long term. Instead of checking cash flow or trading payment terms with suppliers, high-quality professionals waste hours on non-value work like monitoring invoices and rework.
Placing accounts payable automation into this equation changes the equation by:
Companies that automate their AP process typically achieve not just cost savings but also improved supplier satisfaction and better control over cash flow.
How Accounts Payable Automation Saves Costs
Reducing Manual Work
A key reason to automate accounts payable at most organisations is to reduce the cost of manual processing. Even with small invoice volumes, rekeying data, printing reports, obtaining approvals, and reconciling transactions take time and resources.
When an invoice is received, via email or mail, automation tools such as PaperLess pass the information through OCR. Supplier name, invoice number, totals, VAT, and line items are all captured automatically. The figures are cross-matched with purchase orders and goods received notes in your ERP, highlighting exceptions for examination.
This eliminates hours of redundant work and virtually eliminates the risk of overpayment or double posting. Processing efficiency also enables your company to take early payment discounts while only incurring late fees and penalties. These efficiencies can result in significant cost savings over the period of a year.
Enhancing Accuracy and Enhancing Control
Accuracy is another key benefit of accounts payable automation. Manual processes are susceptible to human error, wrong invoice coding, number misspellings, or approvals that are faxed to the wrong person. Those types of issues don’t just cost money; they undermine credibility in your financial data.
With automated workflows, invoice data is automatically captured and matched against your purchase history. Every invoice is routed through a rules-based approval workflow that reflects your company’s policies and spend limits. Notifications and escalation paths keep approvals moving continuously, and a time-stamped history makes every step completely auditable.
Together, this control, validation, and visibility provide finance teams with confidence that their records are complete and accurate, without requiring constant monitoring.
How Accounts Payable Automation Works
A further myth that is prevalent is that automating accounts payable will mean a complicated rollout or a replacement of your master accounting system. Solutions like PaperLess simply integrate into Sage, SAP Business One, and Xero to deliver one process with minimal disruption.
Here’s how the process typically works:
Invoice Capture:
Invoices are either scanned or emailed into the system. OCR automatically captures all information needed, which is saved securely on the platform.
Data Validation and Matching:
The captured data is validated against supplier records and purchase orders that already exist in your ERP. Discrepancies are flagged for review so they can be dealt with before approval.
Approval Routing:
Invoice routing is performed to the respective approvers according to pre-established rules. Escalation paths and notifications ensure prompt approval, and users can approve and access invoices on a computer or mobile device.
Posting to Your Accounting System:
Invoices are posted directly into Xero, Sage, or SAP Business One with coding and supporting documentation embedded once they are approved.
Archiving and Audit Trail:
All invoices and approval activities are kept in an electronic, searchable archive, with a complete audit trail for reporting and compliance.
It watches every invoice go down the same streamlined, consistent route with manual handling and optimising data assurance.
Why Automate Accounts Payable in Sage, SAP Business One, and Xero?
Regardless of whether you use Sage 50, Sage Intacct, Sage 200, Sage Evolution, SAP Business One, or Xero, automation of accounts payable delivers near-term value with minimal disruption to your day-to-day business.
When the authors developed the PaperLess solution, they designed it to integrate with these systems so that you may:
This automation allows finance departments to scale AP operations alongside the expanding business, with no additional headcount or administrative overhead.
Common Challenges (and How to Overcome Them)
Accounts payable automation does involve some change management and planning. But the challenges are not insurmountable with the right strategy:
Change Management:
The workers can be worried that they will be replaced by machines. Automation of repetitive work provides them with the chance to devote more time to tasks of higher value, like forecasting, analysis, and communication with suppliers. Effective training and communication make employees confident and empowered during the change.
Integration Complexity
It is necessary to choose an accounts payable automation tool that is designed for your accounting package. PaperLess is designed to integrate with Sage, SAP Business One, and Xero flawlessly, removing setup time from the equation and reducing the extent of IT involvement.
Custom Workflow Requirements:
Each organisation has unique approval rules and coding structures. PaperLess allows you to map workflows and rules to your internal processes without costly custom development.
Why Paperless Is the Right AP Automation Solution
PaperLess is used by thousands of finance teams in the UK and Europe to automate their AP processes with a touch of modernity. The system is designed with best-in-class functionality and ease of use, power and simplicity combined.
With PaperLess, you can:
This combination of intelligent automation and open integration allows finance teams to drive accuracy and deliver sustainable cost savings.
Final Thoughts
Finance teams have to do more with less today. They need to close deals on time, deliver compliance, and deliver insights to drive growth without shelling out a fortune. Manual procedures just cannot keep pace. They’re too labour-intensive, too error-prone, and keep star performers stuck in tedium.
Automation of accounts payable rearranges the formula. It allows companies to pay invoices faster, with fewer mistakes and total visibility into every transaction. The result is an AP process that is streamlined, accurate, and set to increase with the company.
PaperLess offers a tested, tried, and proven method of turning this ability into a reality, no matter which software you’re operating, whether that’s Sage 50, Sage Intacct, Sage 200, Sage Evolution, SAP Business One, or Xero. With a modern automation platform, your finance team can do what matters most to them: drive strategy, develop more significant supplier relationships, and deliver longer-term success.
Discover how automating accounts payable can make your company save costs, improve accuracy, and operate with confidence.
Book your free PaperLess demo today and see how easy it is to modernise your AP process.