Why automate accounts payable workflow?

Learn the benefits of an automated accounts payable workflow and how you can implement it for your business. The accounts payable (AP) workflow describes the entire process of completing your company’s payment transactions from start to finish. It can be complex and prone to errors if done manually. For example, an invoice might end up in an inactive inbox and not get paid on time, causing credit issues.

When it comes to repetitive tasks like this, it’s best to let a computer handle them. Learn how accounts payable workflow automation can help your business.

Example of manual vs. an AP automation workflow.

To make what we’re talking about clear, let’s imagine a manual AP workflow. It could look like this:

1. The AP manager receives an invoice in the mail from a vendor.
2. AP sends it to the finance department for approval.
3. There’s an issue with the invoice, and finance sends the invoice back to AP with notes.
4. AP corrects the issue and returns the invoice to finance.
5. Finance finally approves the invoice, and AP starts processing the payment.

All in all, this process could take anywhere from a few hours to several days, depending on your organizational structure.

In an automated accounts payable workflow, however, the process changes significantly:

1. The AP manager received a digital invoice from a vendor via email or an integrated accounts payable system.
2. The AP automation software extracts invoice data automatically with the help of OCR or Optical Character Recognition. It then inputs the data into the system.
3. Then, the software routes the invoice to the corresponding person in the finance department for approval.
4. If the invoice raises questions or issues, the system will flag it and notify the finance department, which will add notes to the system and relate them back to accounts payable.
5. Accounts payable will review and correct the potential issue, and the software will automatically update the invoice to the corrected version in the system.
6. The invoice is then rerouted to finance for its final approval.
7. Once it’s approved, the accounts payable automation software automatically prepares the payment, which streamlines the final processing.

Benefits of an automated accounts payable workflow.

Now that you understand what an automated accounts payable workflow is, as well as the differences between it and a manual workflow, you may be wondering about the benefits of choosing this system. Read this list to learn more about how you can benefit from AP automation workflow:

• Reduce processing time
• Increase accuracy
• Save in costs
• Improve efficiency
• Ensure better regulatory compliance and data security
• Enhance control and visibility

AP workflow automation digitizes the AP process. You or your employees can send and receive documents over the internet, making the process much faster. If there are no issues, the invoice can get approved with just a few mouse clicks.

The automated workflow also allows you to predetermine your recipients, making it much less likely that invoices will be lost. You’ll be able to track the entire process and establish a simple audit trail. Good AP workflow automation software also integrates with your other business applications, meaning there’s no need for manual data entry.

Tasks accounts payable workflow automation can streamline.

Once you start implementing accounts payable workflow automation, you’ll be able to see how many of your tasks you can streamline and, therefore, get done quicker. Here are some examples of tasks you can automate:

• Electronic invoicing. An accounts payable workflow automation will help you process digital invoices automatically, meaning that you can turn them in faster.
• Approval workflow. You can streamline the approval process by selecting predefined rules and requirements.
• Matching and verification. By automating your accounts payable workflow, you can match invoices with their respective purchase orders and receipts more efficiently.
• OCR on paper invoices. You can convert physical documents into digital data using OCR or Optical Character Recognition.

Considerations for accounts payable workflow automation.

One of the most important things to do when implementing an accounts payable workflow automation system is to make sure the transition is smooth, efficient, and aligns with the business objectives. Here’s a list of other things to consider before you start implementing this system:

• Compatibility. This AP automation solution needs to seamlessly integrate with your current system, accounting software, and other financial management tools you use.
• Scalability and flexibility. This solution also needs to handle increased volumes of invoices and transactions to keep up with your business growth. In addition, they should offer customization options so you can tailor the software to your specific business needs.
• User-friendly interface. Take into account that there will be a learning curve and training process when you implement the new system and need to train your team. This new solution should also have a user-friendly interface to make the adaptation quicker and more efficient.
• Security and data protection. Make sure the accounts payable workflow automation software you choose includes security measures to protect any sensitive financial data. It should also have a reliable data backup process in place.

Quickly automate your AP workflow.

Adobe Acrobat comes with the visual Workflow Designer tool that makes it easy to create an automated document workflow. Set your recipients, request signatures, track the process, create workflow templates, and more.

Discover how Acrobat can improve your business processes.