We’re often asked, ‘What’s the buzz in accounts payable these days?’ There’s one pretty major answer: automation.
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It’s no surprise… recent advancements in technology have allowed companies like Zahara to automate the slow, repetitive tasks that waste days of your business’ time each month. With accounts payable automated, businesses are free to focus strategy, and make their time and money work better for them.
Despite clear benefits, some finance teams hesitate to embrace this technology. This can stem from a lack of trust in new systems, or concerns about the time and resources needed for implementation. Whatever the worry, the advantages of AP automation far outweigh the initial challenges.
Want to let your finance team break free from low-value, high-effort tasks? Think you can put their skills to better use? Accounts payable automation will let you do just that.
What does accounts payable automation mean?
Let’s start with the basics. Accounts payable automation refers to the use of technology to replace manual tasks with automated workflows. These tools eliminate the need for repetitive data entry, manual invoice processing, and error-prone approval methods.
Typically, AP automation relies on software that digitizes and streamlines the entire process. For instance, it allows you to submit, review, and approve invoices and purchase orders electronically. Advanced solutions like Zahara even use Optical Character Recognition (OCR) and artificial intelligence to extract information directly from invoices, making data entry a thing of the past. =
The primary goals of accounts payable automation are to:
- Speed up the approval process
- Reduce human errors
- Scale operations seamlessly as your business grows
- Save your business time and money
Before we go on, it’s probably a smart idea to acknowledge why AP automation is such a hot topic these days. To do that we need to think about the problems with handling paper invoices.
The pitfalls of paper: why we should all go full auto
Paper invoices cause problems. They get lost, they get misfiled, they get marked with rings from the bottom of your coffee mug and misread. All of these issues cost your business time and money to solve. At times, they can even damage your business relationships.
Much of the issue here comes from the fact that even the best finance department is staffed by humans and humans are prone to mistakes.
Before we go on, let us say that automating AP isn’t about getting rid of the people in your business, it’s about freeing them up to do more rewarding, cost-effective work.
And that’s a nice prospect, because as anyone who has worked in accounts payable will tell you, manually inputting invoices is not rewarding work. It’s thankless – the kind of repetitive work that dulls the mind and invites mistakes.
Doing things the old way can:
- Open you up to fraud: When your employees are tired they’re less likely to spot a fraudulent invoice. Fraudsters can take advantage of tiny discrepancies on an invoice to steal money, so even a tip-top finance pro may not be able to spot when your accounts are being pilfered.
There’s also the risk of internal fraud to think about – that cheeky someone who thinks they can dip their hand in the cookie jar…
- Consume resources: Manually sorting invoices takes buckets of time. When your company grows so will the time you need to sort invoices, which means recruiting more staff. That means more outgoings.
- Stifle growth: Having a bloated invoice processing system will inhibit growth. You can’t scale your business easily if doing so requires prohibitively ballooning costs and hirings.
- Reduce visibility: Good reporting leads to good decisions. If you’re trying to get a read on your business’ health from manually handled invoices you’re not seeing the full picture and you’re not seeing it in real time.
- Compliance issues: These days HMRC is on a mission to digitise the tax system. To comply your financial records must be digital. Keeping paper records can land you in hot water here. The risk of lost invoices in manual systems also leaves gaps in your audit trails that will be red flags if an inspector is looking at your books.
Quick Facts About Accounts Payable Automation
- Businesses using AP automation process invoices 2-3 times faster than manual methods.
- Automated systems reduce invoice errors by up to 90%.
- Companies save an average of $8-$10 per invoice by switching to automation.
- Cloud-based solutions like Zahara enable 100% remote access, supporting hybrid and remote work models.
- AP automation enhances compliance by maintaining a clear audit trail for every transaction.
Key Benefits of Accounts Payable Automation
Once implemented, AP automation delivers significant advantages that benefit your entire team. While the initial investment may seem daunting, the long-term savings and efficiency gains make it a worthwhile choice. Here’s how Zahara’s AP automation software stands out:
| Benefit | Description |
|---|---|
| Saves time | Automates repetitive tasks like invoice processing and data entry, freeing up hours every month. |
| Reduces Errors | Minimizes human mistakes with advanced OCR and automated workflows. |
| Strengthens internal controls | Ensures all purchases go through proper approvals, preventing unnecessary spending. |
| Cloud based document storage | Eliminates the need for physical storage rooms by securely storing all files online. |
| Supports flexi work | Employees can access and process documents from anywhere, supporting remote and hybrid work. |
If you’re asking yourself how to improve accounts payable processing in a business of any size, automation is nearly always the answer.
How do you automate accounts payable?
It’s simple. Let’s assume you already run your business on some business software: Dynamics 365, Sage, Xero etc. All you need to do is pick an integration that adds on to that software.
Choosing the right account payable automation system for you
Choosing the right AP automation system for your business requires a good bit of consideration – you want to make sure you’re addressing the right needs, processes, and goals. We’ve got a detailed guide on getting automated here, but in short:
Assess your current system
– What are your pain points: Late payments, inefficiency, lack of visibility?
– Mapping your workflow might help you visualise the above.
– Figure out how many invoices you handle each day, month and year.
Define your goals
– Based on what you now know, what do you want from automation?
– Think in figures too: how much ROI should I expect?
Evaluate your options
– Shop around, there are plenty of options to choose from.
– Check for customer feedback (you can see ours here).
– Consider the functions you need: approval workflows, advanced data capture, scalability, compliance.
Book a demonstration
– Any AP automation company worth their salt will be able to give you a demonstration. This will give you a chance to see the software in action, and that’s important because you want to know that it’d be easy to use.
Plan for implementation
– Adopting new software can be problematic for employees at the best of times.
– Make sure everyone is on the same page.
– Give people plenty of notice.
– Make sure everyone is fully trained before implementation.
With all that done, you should be ready to automate.
Why Choose Zahara for AP Automation?
Zahara’s accounts payable automation software is designed to simplify and enhance your AP process. Here are some of the standout benefits Zahara offers:
Saves Time with OCR Technology
Manual data entry becomes a thing of the past with Zahara. Its intelligent OCR quickly reads and extracts key information from invoices, drastically reducing processing time.
Improves Accuracy
Human errors can lead to costly mistakes. Zahara’s automated workflows minimize these errors, giving your team more confidence in their financial data.
Supports Smart Spending
With Zahara, you can enforce internal controls effortlessly. Approvals are streamlined, ensuring every purchase aligns with your company’s policies.
Promotes Flexible Work
Zahara’s cloud-based platform lets your team process invoices and approvals from anywhere. Whether working from home, in the office, or on the go, your team stays connected and productive.
Scales with Your Business
As your business grows, Zahara’s automation software grows with you, handling increased invoice volumes and more complex processes seamlessly.
Easy to use
What do we do better than the rest? We pride ourselves on the simplicity of our software. With ease of use a major focus of our business you’ll need fewer resources to get your team Zahara ready, and they’ll have less headaches when it’s up and running.
Fast to deploy
Once you’re ready for automation, Zahara can be rolled out in super-fast time. For small businesses that’s a matter of hours. Larger business, just a few weeks. Everything you need is ‘in the box’ so to speak.
Does Zahara integrate with your business software?
In short, yes. Zahara integrates with all the major business software: Xero, Sage Intacct, 50 and 200, Business Central, QuickBooks, MYOB and more.
Whether you’re talking about automating invoices in QuickBooks, or ERP integration for Xero, we can handle that for you. Our software will seamlessly integrate with your current business program to plug the gaps and enhance its capabilities.
AP Automation project success
Our team has been helping businesses achieve successful accounts payable automation for years. We know what we’re doing. We’ve mentioned in our quick step-by-step guide the things you need to do to get ready for automation, but you can also speak to one of our experts to hear the industry’s best advice right from the horse’s mouth.
Who can benefit most from AP automation
In short, nearly every business will benefit from the accounts payable automation process. When it comes to Zahara we often say we best suit the types of business that tend not to have products on the shelves.
Many of our clients come from construction, healthcare, aviation, NGOs and much more. But that’s not a hard-and-fast rule. We’re always open to discussing if you’re a right fit for our software.
A word from Zahara
Switching from a manual to an automated AP process is a game-changer. In case you need a refresher, here are some compelling reasons to make the move:
- Faster Processing Times: Automated systems significantly speed up the AP cycle, ensuring vendors are paid on time.
- Cost Savings: Reduce operational costs by cutting down on paper, storage, and labour-intensive manual tasks.
- Better Compliance: Automated systems create an audit trail, making it easier to comply with regulations.
- Improved Vendor Relationships: Faster payments and fewer errors foster better supplier relationships.
- Better visibility: With automated accounts payable you’ll be better placed to see where your money is being spent, and therefore better placed to make smart decisions.
With so many top-notch – and we’re tempted to say vital – benefits in mind, there’s probably never been a smarter time to automate your accounts payable process. If you’re considering it, we’d love to talk about what Zahara software can do for you. Our platform is intuitive and designed to make your life easier. We handle everything from invoice management to purchase order approvals, and advanced workflows.
If you still need more info, visit our AP Automation page to learn more about how Zahara can transform your AP process or check out our blog on streamlining accounts payable.
To speak with one of our AP automation consultants to see Zahara in action, you can book your demo here.
We promise that once you’ve experienced the ease and efficiency of automation, you’ll wonder how you ever managed without it.
