The landscape of accounts payable automation solutions has become increasingly crowded in the last 5 years, with a significant rise in the number of companies operating in this domain. This surge is expected to continue, with the AP automation market projected to grow at a CAGR of 13.9%. Currently estimated at $5.4 billion, the market is anticipated to more than triple to $17.05 billion by 2032 (source: Allied Market Research). As more enterprises embrace automation for enhanced productivity and operational efficiency, it becomes crucial to carefully evaluate the various solutions and providers available in the market. In this article, I will highlight the aspects and features to keep in mind when choosing an AP Automation Solution.
Ease of Use
When selecting an AP automation solution, user-friendliness and seamless integrability with existing business processes are paramount. The software should be designed to meet the users’ needs in a straightforward manner and offer a configurable interface to accommodate the organization’s specific requirements.
AI Efficacy
The core of any AP automation software lies in its AI capabilities, particularly in its ability to efficiently process and interpret invoices. The algorithm’s effectiveness in extracting relevant information, especially in complex invoice scenarios, is key. AI algorithms tailored to specific industry domains, such as manufacturing, can significantly influence the choice of software for a particular sector.
ERP integration
Versatility in ERP integration is crucial, with the AP automation system needing to seamlessly integrate relevant invoice information into a range of ERP systems. The capability to integrate with various ERPs, not just the most common ones, is essential to avoid the need for organizations to change their ERP solution to accommodate a particular AP automation system.
Moreover, there are additional features that come with ERP integration that enhance the utility and efficacy of the system. One important feature is 3-way matching i.e. process of matching of purchase orders, goods receipt note and the supplier’s invoice. The process can be managed through the ERP, once AP automation and integration have been achieved.
Invoice Routing for Approval
An effective invoice routing mechanism plays a critical role in any accounts payable solution. The ability to establish and automate rules for routing invoices to the appropriate approving authority, supported by user-friendly and versatile tools, is essential. Some solutions even offer AI-enabled invoice approval route generation.
Analytics and Dashboards
Advanced analytics, including features like fraud detection, preventing double payments, and predictive analysis, are significant differentiators for AP automation solutions. It’s crucial for the software to offer versatile dashboards that present insights in an easily understandable and domain-sensitive manner based on the business vertical’s specific needs.
Usability
Accessibility on both desktop and mobile devices is essential, allowing for 24/7 connectivity and enabling users to access critical operational information and make timely decisions from anywhere. The availability of mobile apps that provide easy access to information such as pending invoices, payments, and invoice approval controls enhances the utility of the solution and supports operational excellence.
Expertise in Accounts Payable
Prior experience and expertise in accounts payable management are crucial factors to consider when selecting an AP automation solution provider. Vendors with a proven track record and in-depth knowledge of accounts payable processes and automation are better equipped to deliver effective solutions.
Extensibility
The flexibility of the software to accommodate different enterprise requirements and process flows through quick and easy extensions is indispensable. A solution’s extensibility and adaptability to user needs can significantly enhance its integration into an enterprise’s daily operations. In conclusion, as the AP automation solution landscape continues to expand, it’s imperative for organizations to carefully consider these essential factors and features when evaluating and selecting the best solution to meet their specific needs.
