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What is AP Automation?

Efficiency and accuracy are crucial in financial processes. Yet many organisations still struggle with time-consuming and error-prone invoice processing. AP Automation offers a solution by digitising and streamlining this process. But what exactly does AP Automation entail? And how can an AP Automation solution contribute to smoother processes and better results?

According to John Schouten, Director Product Management at ISPnext, the impact of automation is huge: ‘With AP Automation, organisations can not only save time, but also gain strategic insights that contribute to better decisions.’

In this blog, we will show you how invoice processing software makes the move to automated invoice processing easier and what benefits this will bring to your organisation.

What is the purpose of AP Automation?

Processing invoices manually presents several challenges, such as:

  • Errors due to incorrect data entry;
  • Duplicate payments;
  • Slow approvals, putting pressure on supplier relationships.

"Manual processes not only cost time, but also increase the likelihood of errors and financial risks," John stresses. With the move to digital invoices and invoice automation software, companies can address these inefficiencies. This speeds up processes, prevents errors and provides better control over the accounts payable process.

AP Automation aims to:

  • Eliminate manual processes and automate invoice processing.
  • Improve accuracy and reduce human errors.
  • Optimise cash flow management by leveraging timely payments and discounts.
  • Provide real-time visibility into financial liabilities.

What are the benefits of AP Automation?

An AP Automation solution offers much more than just time savings. It transforms financial administration and improves control over accounts payable management.

  • Cost savings: Less manual processing means lower operational costs and more efficient use of employees.
  • Better accuracy: With invoice processing software, data is automatically recognised and checked, preventing errors and ensuring consistency.
  • Efficient cash flow management: Faster approvals enable timely payments, allowing you to benefit from early payment discounts and maintain financial flexibility.
  • Real-time insight: Accounts payable automation provides you with up-to-date data that helps with strategic decision-making and risk management.

John adds: "With AP Automation, you get a grip on your expenses as well as your business processes. You always have a complete overview and can move faster."

John Schouten ISPnext
"Thanks to this automation, finance teams have more time for strategic tasks instead of manual control."

- John Schouten, Director Product Management | ISPnext

What phases are there in AP Automation?

An AP Automation solution uses smart technologies such as OCR (Optical Character Recognition) and AI. These are the key stages within the process:

  1. Receiving digital invoices
    Invoices are captured electronically and automatically processed in the system.

  2. Recognising and matching data
    The software reads key data such as invoice number, supplier and amounts and matches them with purchase orders or contracts.

  3. Validation and approval
    Information is automatically checked for accuracy and forwarded to the appropriate approvers within the organisation.

  4. Booking and payment
    After approval, invoices are automatically booked into the ERP system and prepared for payment.

John explains: "Thanks to this automation, finance teams have more time for strategic tasks instead of manual checks."

How do you implement invoice processing software?

If you want to switch to invoice automation software, good preparation is essential:

  1. Analyse your current processes
    Identify inefficiencies and set improvement targets.

  2. Involve stakeholders
    Ensure cooperation between finance and procurement teams during implementation.

  3. Choose a flexible solution
    Select software that integrates with your ERP system and matches your organisation's needs.

  4. Phased implementation
    Start with a pilot, test the software thoroughly and scale up once results are visible.
John advises: "A successful implementation is all about collaboration. It is essential that the solution fits perfectly with the way your organisation works."

Take the step towards more efficient accounts payable management

The future of invoice processing lies in automation. With ongoing developments in invoice automation software, processes are becoming smarter and more efficient. By investing in AP Automation now, you will immediately benefit from lower costs, fewer errors and better control over your financial processes.

Want to find out how ISPnext's AP Automation solution can help your organisation? Contact us or request a demo and experience the benefits of automated invoice processing for yourself!

AP Automation in 5 steps

Download the white paper AP Automation in 5 Steps and get valuable insights to cut costs, reduce errors and optimise your processes.

Mockup_Preview_AP Automation in 5 stappen (ENG)
John Schouten ISPnext