OPERA3 SQL - A simple guide to AP automation

Most finance teams can admit that manual accounts payable processes are arduous, error prone and very time consuming. Audits are painful as mountains of paperwork must be sorted through, and paying invoices monthly is slow and tedious. That is where automated accounts payable comes in (AP automation). 

We have spoken a lot on our blog recently about AP automation, but this simple all-round guide aims to go back to basics as we explain what AP automation is, how it works and the benefits.

What is AP automation?

Let’s start at the beginning. AP automation, as the name suggests, automates your accounts payable process by automating the manual processes involved. It means automating processes such as receiving invoices, coding, approval, payment and reconciliation. AP Automation software provide dashboards which allow you to see the entire journey of an invoice, and its status in real-time, and everything is stored electronically for easier audits.

How does AP automation work?

Of course, different software will operate slightly differently so we are going to explain specifically how our own AP automation software will work, that is coming soon to Opera 3 SQL SE. 

A unique email address is used to capture your invoices, which are then automatically converted into a digital format, including any attachments, invoice header and line details. The AP automation feature uses Optical Character Recognition (OCR) to extract all the relevant information from the invoices and Machine Learning (ML) is used to recognise repeated patterns and improve accuracy. Finance teams have complete visibility and control over the status of every invoice processed to allow for smarter budgeting decisions, and a duplicate invoice check ensures no invoices are paid twice. An automated bank account capture reduces the risk of fraud and the approval process can happen anytime, anywhere by the nominated approver. For security you can add as many approvers as you wish. Once approved the invoice will appear in Opera 3 SQL SE with a full audit trail and will be electronically stored for seven years to meet audit requirements.

Benefits of AP automation

Ultimately the biggest benefit of automating your accounts payable is to make the life of your finance team easier, however there are many other benefits too:

  • Automation reduces errors which often come with manual input
  • Much quicker to process invoices
  • Speedier payments means stronger relationships with suppliers
  • Reduce paper storage – greener and also easier for audit purposes
  • Your AP processes can be conducted anywhere, including the all important approvals
  • Staff can be more productive in other areas

Next steps…

Automating accounts payable has become a must-have feature for many finance teams, big and small, as the numerous benefits speak for themselves. The ability to automate manual processes within the AP function such as coding, approval, payment and reconciliation is saving finance teams vast amounts of valuable time and money.

 

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