Do you dread tackling the piles of paper and electronic invoices flooding your finance department daily? Are your staff stuck performing repetitive, low-value tasks like data entry and number crunching instead of high-impact analysis? You‘re likely grappling with manual, inefficient accounts payable (AP) processing.
Here‘s the good news – automating accounts payable workflows is easier than ever in 2023. AP automation tools use technologies like artificial intelligence, machine learning and optical character recognition to streamline processes from invoice receipt to payment approval to accounting system reconciliation.
Leading enterprises are catching on to AP automation benefits like:
- 60% to 80% faster invoice processing
- 50% to 70% lower invoice costs
- 3x higher staff productivity
- 20% average increase in early payment discounts
This guide will explore the top accounts payable automation solutions helping organizations achieve these stellar results. Let‘s start by examining exactly how AP software streamlines complex financial workflows.
How Accounts Payable Automation Software Works
Accounts payable software has advanced capabilities to replicate almost every manual accounts payable process electronically. Functions span:
Invoice Capture – Paper invoices are scanned and intelligent OCR technology extracts key details into digital form. Email invoices are automatically imported.
Approval Workflows – Configurable rules route invoices to approvers based on factors like amount, type, vendor etc.
Exception Handling – Machine learning matches invoices to purchase orders and detects duplicates to resolve issues fast.
Payment Processing – Tools support one-click payment through ACH, checks, cards or external gateways.
Accounting Reconciliation – Final step syncs payment details directly into leading general ledger accounting systems.
Combined end-to-end, these steps create automated start-to-finish accounts payable system requiring minimal human touch. Now let‘s review top solutions in this space.
The 10 Best Accounts Payable Automation Software Solutions for 2023
| Solution | Best For | Key Features | Pricing |
|---|---|---|---|
| Bill.com | Small to large businesses | Custom approval rules, accounting integrations, dashboard analytics | Starts at $29/mo per user |
| Tipalti | High volume AP departments | Supplier onboarding, mass payments, compliance controls | Custom quote |
| MineralTree | Mid-sized businesses | Mobile approvals, paper invoice scanning, GL coding | Starts at $99/mo |
| Xero | Small business accounting | Seamless sync with accounting system | Starts at $30/mo for 5 invoices |
| AvidXchange | Procure-to-pay transformation | Purchasing, invoicing, payments, inventory | Contact for pricing |
| PaySimple | Small businesses | Integrated payment acceptance | $59/mo + transactions fees |
| SAP Ariba | Global enterprises | 180+ ERP integrations, currency support | Contact for pricing |
| Beanworks | Small to mid-size businesses | Duplicate detection, accounting sync, check printing | Starts at $19/user/mo |
| Yooz | Lights-out AP automation | RPA for touchless data extraction | Custom pricing |
| Oracle Fusion Cloud | Global enterprises | AI for validations, enrich reporting, supplier portal | Contact for pricing |
While stacks vary across solutions, you can expect 80% to 90% overlap in core capabilities like unlimited invoice volume processing, real-time dashboards, configurable approval chains and seamless accounting sync.
Top vendors differentiate through add-ons like mobile apps, purchase order matching, vendor self-service portals, advanced analytics using artificial intelligence and machine learning and proprietary data extraction technologies. Let‘s explore leading options in more depth.
Bill.com – Leader Across Segments
Bill.com strikes an excellent balance delivering enterprise-grade AP automation tailored for fast-growing small to very large businesses. Users appreciate the simple interface hiding the platform‘s sophisticated workflow customization and accounting reconciliation engine.
Craig Wolfe, Accounts Payable Manager at ACME Building Materials, switched from manual processing and QuickBooks to Bill.com. He shares:
"Managing payables was taking up more and more of my time. Bill.com gave me back 1-2 days a week previously spent on approvals and check runs. The time savings are incredible."
Key user benefits include:
Flexible Approvals – Set different sign-off rules for diverse spend types or departments across the organization.
Payment Choice – Reimburse employees and pay suppliers via check, ACH or wires in over 140 currencies.
Accounting Automation – Two-way sync eliminates re-keying transactions into QuickBooks, NetSuite and other leading platforms.
Spend Analytics – Gain visibility into cash flow and take advantage of early pay discounts.
With pricing starting at just $29/month per user, Bill.com satisfaction rates exceed 98% making it the spend management platform of choice for tens of thousands of customers.
Tipalti – Powering High-Volume AP
Complex global businesses like Amazon, Sony and Uber with thousands of suppliers rely on Tipalti to flawlessly manage massive transaction volumes. Leading ERPs including SAP, Microsoft Dynamics and Netsuite integrate seamlessly avoiding disruptive rip-and-replace implementations.
Patrick Bennett, Finance Automation Manager at Penguin Random House, described [moving from manual AP]:
"We saw the solution Tipalti was providing – the global reach for payments, the validation of suppliers, and built-in analytics. Right away we recognized this was exactly what we needed."
Standout capabilities include:
Automated Onboarding – Ensure every supplier meets compliance standards before activation across business units.
Self-Service Supplier Portal – Let vendors manage own payment details and tax forms digitally.
Bulk Global Payments – Pay all suppliers in one batch available in all currencies via SWIFT, ACH and cards.
AP Reporting – Analyze cash flow in real-time across global subsidiaries with 80+ configurable reports.
Though pricing is customized based on needs, most customers achieve full ROI is less than a year from efficiency gains and dynamic discounting.
MineralTree Checks All the Boxes
MineralTree, founded by past Intuit and Mint executives, offers a complete mid-market solution integrating invoice capture, approval routing, payment processing, expense reimbursements and accounting reconciliation.
The user-friendly web interface, mobile apps and optional RFID invoice tracking cater to both technical and non-technical staff. Integrations with over 25 top accounting platforms like QuickBooks and Microsoft Dynamics GP simplify syncing.
Varun Jain, Finance Director at CORE Health Care, switched from QuickBooks and Excel to MineralTree. He explains:
"MineralTree delivered the end-to-end AP automation that seamlessly integrates with our ERP and reporting needs. The ability for our team to now work remotely while collaborating has become extremely valuable."
MineralTree stands out for features like:
Configurable Workflows – Set conditional approval chains spanning GL coding, department allocation and cost center distribution.
Expense Reporting – Capture itemized purchase data from employee expense reports.
Paper Invoices – Scan and digitize mailed paper invoices using OCR technology.
ACH Payments – Reimburse staff and pay supplier bank accounts electronically.
Pricing starts at $99/month including up to 250 annual invoices making MineralTree a budget-friendly option for mid-market organizations.
Leading Enterprise Solutions
Large conglomerates and multinationals have unique needs like intense transaction volumes demanding flawless automation, complex global regulatory compliance and multi-system ERP environments hindering modernization efforts.
Solutions like SAP Ariba and Oracle Fusion Cloud Accounts Payables overcome these barriers leveraging cutting-edge technologies and decades working with the world‘s biggest brands.
For example, integrated AI capabilities auto-validate invoices against contracts and purchase orders, self-correct exceptions and mismatches and speed accrual accounting and reconciliation processes. Data science applied against rich ERP datasets surfaces AP process bottlenecks ripe for transformation efforts.
However such enterprise functionality requires compromise. Extended deployments measured in quarters or years are common. Seven figure annual investment is typical which limits adoption primarily to billion dollar revenue corporations. But realized ROI from massive efficiency gains ultimately overcomes the hurdles for most organizations in this bracket.
Specialized Solutions
Every business niche has specialized needs. Software firms like Yooz focus exclusively on lights-out workflow automation leveraging robotic process automation (RPA) and artificial intelligence (AI) so no human even touches invoices until exceptions.
Construction industry solution Textura seamlessly facilitates complicated progress billing and subcontractor payments during lengthy building projects.
Finally, solutions like Avidxchange cater to procurement needing tight buyer-supplier inventory management and agency relationships through integrated purchase order and order fulfillment capabilities.
Carefully evaluate your own requirements before prioritizing solution criteria and vendor selection.
6 Must-Have Accounts Payable Automation Features
While needs vary across organizations, these six capabilities create the foundation of a robust, scalable accounts payable automation system:
Configurable Workflows – Rules-based invoice routing mimics existing approval chains without disruption.
Seamless ERP Integration – Avoid duplicate data entry by syncing directly with major accounting, payroll and ERP platforms.
Secure Supplier and Employee Portals – Centralize financial relationships by enabling digital self-service for vendors, 1099 contractors and employees.
Process Analytics – Uncover process bottlenecks to target next automation and transformation initiatives.
Duplicate Detection – Machine learning identifies duplicate invoices automatically to prevent double payments.
Tax Compliance – Country-specific tax treatments meet global regulatory requirements with automated auditable reporting.
Evaluating Accounts Payable Automation Solutions
With stakeholder consensus on feature priorities for your unique needs, this six step methodology helps objectively evaluate available solution options:
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Create feature/capability checklist – Quantify must-haves vs. nice-to-haves.
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Develop vendor list – Research analysts like Gartner plus industry events help compile longlist.
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Issue RFP – Require detailed responses describing abilities to meet defined feature set.
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Evaluate demos – Get hands-on experience trying product alongside daily workflows.
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Compare total cost – Factor both subscription and internal implementation/training.
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Select winner – Alignment with needs and budget indicates right fit.
Be cautious of vendors overpromising functionality. Explore third party client references and confirm trial periods in contracts allow testing for real requirements.
Realize Rapid Returns By Following Best Practices
While capabilities obviously vary across providers, success with any accounts payable automation platform relies on core tenets.
Executive Sponsorship – CFO and controllers must fully support initiatives as influential advocates to drive adoption.
Clean Data – Resolve unapplied credits and outstanding P.O.s, collect missing supplier bank details and establish unique identifiers crucial for automation integrity.
Standardization – Remove unnecessary approval layering and payroll complexities impeding workflow simplification.
Change Management – Proactively address staff anxiety through open communication on evolving team roles and responsibilities.
Continuous Improvement – Regularly reassess processes for additional automation opportunities even post implementation.
Following these guidelines smoothens deployments, enhances user buy-in and accelerates measurable returns on technology investments.
Are You Ready To Streamline Accounts Payable?
Invoicing workflows remain mired in paper and manual processes wasting up to 16 hours a week for the average mid-size business. Yet accounts payable automation necessities like lower costs, greater agility, reduced risks and bigger profits grow more important each year.
Now is the time to assess available solutions relative to your feature needs and key vendor selection criteria. Allocate trial periods testing shortlisted options under real working conditions using your own invoices and payment workflows.
I hope reviewing the top vendors and critical considerations when implementing AP automation tech simplifies this significant evaluation. Please reach out directly any time with additional questions. Here‘s to productive 2023 leaping your accounts payable capabilities years ahead!
