Accounts payable (AP) automation is a game changer for businesses of all sizes. By replacing manual, time-consuming processes with automated processes, you can save money, improve accuracy, and increase efficiency.
But like any tech-driven process, implementing AP automation requires a thoughtful approach to maximize its benefits. Let’s explore key best practices for AP automation — and tips and tricks to help you achieve AP success.
AP automation is the use of technology to manage the entire accounts payable process. Instead of manually entering data, matching purchase orders (POs), and chasing down approvals, AP automation streamlines every step, freeing up time for your team to focus on more strategic tasks and to do's.
While AP automation will greatly improve your workflow, it can't solve all of your accounts payable challenges on its own. To get the most out of your AP automation solution, it’s crucial to follow best practices that boost performance, reduce errors, and ensure smooth integration with your existing accounting or ERP systems.
Let’s explore eight ways you can elevate your AP automation game:
When it comes to automated AP data entry best practices, clean data is king. Automation software can only be as accurate as the information it’s processing. If your data is inaccurate or incomplete, you’ll still likely face errors and slow approvals — as well as frustrated vendors.
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Clean data also helps your automation system better match invoices to POs and shipping receipts, one of the primary advantages of automation.
An unorganized workflow limits the effectiveness of your automation system. That's why you should establish standard procedures that clearly define each stage of your AP process — from invoice upload to payment. The more standardized and streamlined your process, the easier your automation solution can handle it.
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This doesn't just speed up your workflow — it minimizes the risk of human error, which too-often occurs in manual steps.
Three-way matching is a cornerstone of effective AP automation. This process involves matching an invoice with the corresponding PO to ensure you only pay for the goods or services that were actually ordered and received.
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By automating three-way matching, you reduce the chances of overpaying or paying for things that were never delivered.
Many vendors offer discounts for early payments, but manual processes often prevent companies from taking advantage of these offers. Automation speeds up invoice approval, giving you more opportunities to cash in on these savings.
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This practice can significantly improve your bottom line over time.
A major benefit AP automation solutions offer is their ability to integrate with your existing systems. This includes your accounting software or enterprise resource planning (ERP) system. Smooth integration allows for real-time data sharing between systems, so your records are always accurate and up to date.
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Integration helps create a seamless process where information flows easily between your systems — so you're always on top of cash flow.
Automating your AP process doesn’t mean you should stop nurturing your vendor relationships. Instead, leverage automation to improve these relationships by reducing payment delays and errors.
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Automated AP systems should help make vendor relationships smoother — not more complicated.
No system is perfect, and that includes AP automation. To make sure you’re getting the most from your AP system of choice, it's important to regularly evaluate its performance — and make adjustments when needed.
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By actively managing your system, you’ll keep it running at peak efficiency and spot potential problems before they become serious.
While AP automation will reduce the amount of manual work your team has to do, it doesn’t eliminate the need for skilled employees. Your team will still need to manage exceptions, handle vendor queries, and monitor system performance.
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This will empower your team to make the most of your AP automation system and ensure smooth operations.
Even the best automation software needs regular monitoring and adjustment to keep it performing optimally. That's why using accounts payable automation best practices is essential for getting the most out of AP automation.
By focusing on clean data, standardized workflows, and how you can best use specific features — like three-way matching and ERP integrations —you’ll set your business up for success. AP automation will not only save your business time and money but also help build stronger relationships with your vendors, allowing for long-term success.
If you're ready to make the leap into AP automation, Nimbello's here to help you get started. Our solutions offer a better way to manage every step of the AP process and easily integrate with your existing systems. With Nimbello, you'll be on track for success from day one.