One of the primary objectives of your AP automation workflow is to make the process simpler and more efficient. However, some automation solutions may force businesses to comply with their rigid rules and guidelines, leading to disruptions in the current AP processes. To truly benefit from automation, businesses should seek solutions that are flexible and customizable to suit their unique needs and processes.
Tailoring Automation to Your Business
An effective AP automation solution should be adaptable to your organization’s specific rules and guidelines, ensuring a seamless integration with existing processes. By working closely with your AP department, the automation solution provider can gain an understanding of your current processes, allowing for the development of a tailored solution that caters to your unique requirements.
Maintaining Compliance Standards
In addition to flexibility, an AP automation solution should also adhere to various compliance standards, such as SOC, ADA, HIPAA, and more. This ensures that the automated processes remain compliant with industry regulations, safeguarding your business from potential legal issues.
Enhancing Invoice Coding with Machine Learning
Coding non-PO invoices is essential for accurate tracking and organization within the AP department. As technology advances, machine learning has emerged as a powerful tool for simplifying the coding process.
Header and Line-Level Coding
An effective AP automation solution should provide both header- and line-level coding, allowing for efficient tracking of necessary information throughout the invoice approval process.
Auto-Coding with Machine Learning
By analyzing historical data for non-PO invoices, machine learning algorithms can determine the appropriate general ledger coding for new invoices. This auto-coding process can automatically populate fields, such as location, account, department, and other commonly used information for general ledger coding or reporting.
Managing a Large Number of Active Approvers
A comprehensive AP automation workflow system should reach deep within an organization, resulting in a large number of users responsible for approving invoices. An automated routing system can interface with your human resource management systems to maintain up-to-date information on hierarchies and approver details. This ensures that invoices are sent directly to the appropriate approvers, reducing manual effort in the AP department.
Handling Multiple Approvals per Invoice
A robust AP automation system should enforce your organization’s approval workflow policies by utilizing a combination of entry points, business rules, and hierarchies. This ensures that all audit rules are followed, providing a clear audit trail and minimizing the risk of non-compliance during audits.
Reducing Approval Time with Efficient Workflows
To optimize the AP process, it’s essential to minimize the time taken for invoice approvals. An effective AP automation solution should include a user-friendly interface, escalation emails, and analytical tools to ensure that invoices move through the approval process quickly and efficiently.
Robust Functionality for Various Situations
A versatile AP automation solution should offer a multitude of features to adapt to different situations, such as:
- Vacation rerouting
- Job sharing
- Passive approvals
- Next-in-line overrides
- Proxy approvals
These features enable businesses to maintain smooth and efficient AP processes, regardless of any unexpected circumstances that may arise.
Expanding to International Markets
For businesses operating in global markets, an AP automation solution should be available in multiple languages and incorporate region-specific settings for date formatting, time placement, and currency conversions. This ensures that invoices are correctly routed, and users can view amounts in their base currency.
Frequently Asked Questions
Why should businesses switch to e-invoicing?
Electronic invoicing provides numerous benefits, such as increased AP efficiency, easier cash flow management, and reduced costs. By adopting an e-invoicing solution, businesses can streamline their AP processes and enjoy these advantages.
What is the cost of implementing AP automation?
The cost of implementing AP automation varies depending on the organization’s needs. However, by switching to electronic invoicing, the cost per invoice can be significantly reduced. For an accurate cost estimate, contact your preferred automation solution provider.
Do users need to install any software on their computers?
Typically, users will not need to install any software on their computers to use an AP automation solution. If you encounter any technical difficulties, reach out to your technical support group or the solution provider for assistance.
Implementing an AP automation solution with approval workflows can greatly improve the efficiency and accuracy of your accounts payable process. By embracing flexibility, compliance, machine learning, and robust functionality, businesses can streamline their AP processes, reduce manual effort, and ensure compliance with industry regulations. To truly benefit from automation, it’s essential to choose an adaptable solution tailored to your organization’s unique needs and processes.