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What is AP automation software and why do you need it?
Every organization has its fair share of suppliers and the bills these suppliers raise are recorded as accounts payables. The software that helps the Accounts Payable (AP) division of an organization manage their operations is known as AP automation software.

As the name implies, the software automates the accounts payable business function and makes it easy for AP professionals to keep a track of all the invoices that the organization receives. It helps with receiving, approving, processing, and paying invoices from suppliers. Instead of manually processing the invoices, which can be tedious and error-prone, the software automates many of the steps and ensures an efficient and accurate process. This can be invaluable in a business process that deals with cash.

So, why do you need it?

Workflow management: The AP division, as with other business functions, has its own workflow to process invoices. From receiving them from suppliers to sending them out to their respective cost centers and business functions for approval to payment, invoices go through a step-by-step process. With manual practices, there could be bottlenecks formed at several stages. Automation makes the process optimal.

It is not uncommon for AP professionals to process invoices that have mistakes or invoices that are duplicated. In either case, the organization loses. To ensure complete accuracy, every detail in the invoice has to be verified and every invoice has to be checked for duplicates. This task when done by hand will take a lot of time and will not guarantee results. But with AP automation, these instances do not occur.

Speed: As mentioned earlier, invoice processing is fraught with bottlenecks and obstacles that cause delays. In some cases, when invoices are paid early, organizations get discounts. However, if the process is such that speed can’t be maintained, they lose out on these.

AP automation software speeds up the process and does not allow any kind of setbacks.