Accounts Payable Automation Process

Updated on Thursday 11th February 2021

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Accounting is one of the most important departments in a company as it deals with all the amounts of money entering and exiting it.

If a few years ago many of the processes that imply receiving, registering, and paying various amounts were completed manually in the case of small companies and with the help of accounting systems in the case of medium and large-sized entities, nowadays these businesses can ease the job of their accountants by using accounts payable automation.

Furthermore, accounts payable teams spend 30% of their time performing various controls on their payments and this is often manual and prone to errors.  This is the solution proposed by Paid Analytix and it implies the digitization of most of the controls accounts payable team does.

Below, we invite you to discover our solution and what it has to offer.
 

What does accounts payable automation mean?


Accounts payable automation allows companies to process invoices much faster and with significantly lesser effort of the accounting staff with the help of specialized software. The solution proposed by Paid Analytix, however, takes this process even further as it enables companies through the artificial intelligence engine coupled with operational expertise not just to make to secure their payments but also to understand more about the root causes of these errors are.  
 

Accounts payable automation – how it works


Accounts payable implies several steps, among which receiving supplier invoices, entering them into the company’s accounting program, sorting them, processing them, and paying them. For most business in addition to this process, the accounts payable teams spends additional time to perform specific controls to ensure that the payments are correct.

When using our AI-based software, here is what you can expect:
 
  1. automated accounts payable controls with the limited need of human intervention,
  2. quick identification of the different type of errors (duplicate payments, overpayments, currency errors, fraud)
  3. error reporting which can lead to improving the accounts payable process,
  4. improved risk coverage

Accounts payable automation has benefits not only for the accounting department in a company but also for its staff which can be assigned new tasks, thus improving the entire workflow.

If you need information on our overpayment protection software, our specialists can provide detailed information alongside examples that will help you understand the main benefits of accounts payable automation.
 

AP automation and the procedures behind it


In order to be able to use automated accounts payable software, a company should use digital invoices. As most businesses already use dedicated accounting programs, it will be easy for them to integrate our accounts payable automation software with their existing ones.

While these procedures can seem time-consuming when handled by the human factor when Artificial Intelligence takes over, they will be much simpler, not to mention the time saved with invoice verification and financial recoveries.

If errors or inconsistencies between the invoices entered into the system are found, our overpayment recovery software will signal them in the shortest time and will also indicate the pattern that led to them, thus preventing future mistakes.

The accounts payable automation process is not new, however, with the help of AI which was integrated into our software, it has significantly improved.
 

What do companies have to lose by not using accounts payable automation?


The first and most important thing to lose by a company using traditional accounting software is money, followed by time.

Based on the experience of some of our clients:
 
  • up to 1% of the total value of payments are lost by large enterprises on a yearly basis because of invoicing mistakes,
  • the accuracy of traditional software is 30% lower compared to ours which will lead to payment delays,
  • employees will lose up to 50% of their and the company’s time to complete tasks that would be instantly handled with the help of our accounts payable software.

The accounts payable automation process comes with a lot of benefits especially for medium and large-sized enterprises that deal with large volumes of invoices per year, so if you need information on how to use our software, we invite you to contact us for extensive information.

Radu FertoneaArticle by:
Radu Fertonea is the founder of Paid Analytix and Senior Manager with Executive MBA degree (Maastricht School of Management). He was director of operations at Societe Generale European Business Services, in charge with: Management of the Source to Report practice (Procurement, Accounts Payable, Accounts Receivable, Management Accounting) | Global redesign of end-to-end source to report activities | Consolidation of the Finance exercise for the European operations of Société Générale (100% coverage target by 2020) | Transition Management, Process Standardization and Continuous Improvement | People Management – team of 150+. With a broad experience in the financial field and after working with large societies which handle thousands of payments every year, came up with the idea which led to the creation of Paid Analytix.