Introduction
As businesses embrace technological advancements, accounts payable automation is becoming an increasingly vital discussion. Growth, digitization, and efficiency are the key themes for 2024, as outlined in Deloitte’s CFO Signal Survey [1].
McKinsey also noted that digital adoption has leaped 3 to 7 years since 2021. As AI becomes more widely used, adapting your accounts payable processes sooner rather than later will benefit your business long-term.
Here, we explore the tools and trends that will help your business transition smoothly to accounts payable outsourcing and automation.
Accounts Payable Trends Forecast for 2025
1. Reduction in Manual Tasks and Paper Documents
A study by APQC found that 50% of organizations still rely on paper-based payment processes. While many businesses are automating, this means half of the market remains open for accounts payable automation solutions.
2. Increased Urgency to Improve Efficiency
The adoption of electronic invoices and data extraction has improved invoicing efficiency by 7-23% since 2019. In 2023, AP software could further increase this figure.
3. Reduced Processing Costs through Automation
The cost to process an invoice has increased from $5.83 to $6.50 between 2019 and 2022 due to higher labor demands. Automation is key to reducing these costs.
An AP automation solution, like Payvy, can streamline your invoicing process, saving both time and money.
Common Features of Accounts Payable Software
AP automation software simplifies vendor payments and relationships, helping businesses reduce errors and save time. Common features include:
- Electronic Invoice Submission: Reduces errors and speeds up payment processes.
- Invoice Data Extraction & Validation: Ensures accuracy and readiness for payment.
- Approval Workflow: Automates payment authorization, reducing fraud risks.
- Payment Processing: Electronically schedules and processes vendor payments.
- Vendor Management: Manages vendor information and relationships.
- Expense Management: Tracks expenses like employee reports and vendor invoices.
- Reporting & Analytics: Provides insights into payment trends and vendor performance.
- System Integration: Connects with accounting software or ERP systems.
- Mobile Access: Enables access from smartphones or tablets.
Best Accounts Payable Automation Software Snapshot
Here’s a brief overview of top AP automation software solutions by business size:
Small Business Solutions
| Software | Pricing | Features | Integration | Support |
|---|---|---|---|---|
| Bill.com | $45/month (Essentials) | Batch processing, payment scheduling, self-service portals, mobile app, overdue payment notifications | Various accounting ERP | Email, live chat |
| Melio | Free | Batch processing, automated workflows, self-service portals, mobile app, payment tracking | QuickBooks Online | Email, live chat |
Medium-Sized Business Solutions
| Software | Pricing | Features | Integration | Support |
|---|---|---|---|---|
| Stampli | Contact for pricing | Expense reporting, invoice creation, workflow management, vendor self-service, fraud management, cloud-based processing | MS Dynamics, Oracle | Email, live chat |
| Airbase | Free | Expense reporting, employee reimbursements, vendor self-service, cloud-based smart AP automation | Oracle, QuickBooks | Email, live chat |
Large Enterprise Solutions
| Software | Pricing | Features | Integration | Support |
|---|---|---|---|---|
| Celonis | Contact provider | Meta-data, OCR scanning, process automation, business intelligence, document approval, fraud management, audit trails | ERP | Email, live chat |
| MHC Software | Contact provider | Meta-data, OCR scanning, portals, process automation, business intelligence, user access management, fraud prevention | ERP | Email, live chat |
A Deeper Look at Top AP Automation Software
Bill.com
Based in San Jose, Bill.com simplifies and controls financial workflows, including payables and receivables. It is trusted by leading financial institutions and has received patents for AP automation technologies.
Key Customers: Quicken, TED, Galileo, Wag!
Accolades: Top 20 Fastest Growing Software 2022
Melio
New York-based Melio helps small businesses improve cash flow by offering free vendor payment tools. Pay bills via bank transfers, debit cards, or credit cards, with automatic syncing to QuickBooks.
Key Customers: Radical Woman, Silver Sound
Accolades: Named to Forbes Fintech 50 List
Stampli
Stampli is an AP automation platform that integrates payments, documentation, and corporate cards. Its AI tool, Billy the Bot, simplifies GL coding and approval processes.
Key Customers: Kiva Confections, Renova Energy
Accolades: #1 Customer Satisfaction, Usability, Implementation in 2022 (G2 Grid)
Automation Facts and Figures
- 80% reduction in invoice processing time.
- 95% decrease in errors.
- 60% cost savings on invoice processing.
- 90% reduction in fraud risk.
- Improved vendor relationships due to timely, accurate payments.
Conclusion
As AP automation becomes more popular, it’s critical to choose a partner that meets your business's growing needs. Evaluate each provider based on your company's size, industry, and goals, and make a decision that sets you up for success.
Peter Drucker once said, "Whenever you see a successful business, someone once made a courageous decision." AP automation could be that courageous decision for your company.
Footnotes
[1] https://www.auxis.com/blog/accounts-payable-trends