13 Must-Know Benefits of Accounts Payable Automation: Work Smarter, Save More
Are your Accounts Payables still stuck in manual mode?
Let's face it—manual processes are a nightmare. Lost paperwork. Slow payments. Random errors. And endless data entry.
If your finance department is still battling spreadsheets and chasing down approvals, it's time to upgrade!
Read on to learn more about the advantages of Accounts Payable automation, including:
✔ Which AP processes can be automated;
✔ The best automation to save time and cut costs;
✔ The best AP automation software to work wonders for your workflows.
Let's fire up those AP functions! Ready? Set? Automation!
What Does AP Automation Do?
When you switch to a full-featured AP automation software system, invoices practically process themselves, approvals occur almost instantly, and payments run almost entirely on autopilot. No more bottlenecks or lost documents—just smooth, automated transactions.
That's AP automation in all its glory!
AP automation digitises and streamlines your entire accounts payable system.
Here's how it works:
✅ Optical character recognition (OCR)– No more manually keying in invoice details! OCR extracts key information instantly from scanned invoices and enters them directly into your processes.
✅ Automated Routing – Instead of waiting days for signatures, invoices are automatically sent to the right person for fast sign-off.
✅ Automatic Payment Processing – Qualify for early-due date discounts and turn the tables on late fees forever!
✅ Audit-ready data – Automatically log and store AP transactions with full audit trails for simplified compliance.
AP automation turns messy, manual processes into a well-oiled, high-speed financial system.
But that's just the beginning!
What Processes Are Automated in Accounts Payable?
Curious about what goes on behind the scenes? Here's an in-depth look at how the best software automation completes the Accounts Payable process from invoice to payment:
🔹 Step 1: Invoice Capture & Data Extraction
Forget manual data entry—your AP platform automatically reads invoices and extracts the key details, such as supplier name, invoice number, and due dates, with near-perfect accuracy.
🔹 Step 2: Automated Matching & Validation
With all invoice data securely captured, the system matches it against purchase orders (POs) and receipts to verify and validate the transaction.
✅ The invoice matches the PO;
✅ The PO matches the goods or services received;
✅ The invoice amount is verified before acceptance.
Any discrepancies, like an incorrect total or missing PO, will be flagged automatically and sent for your review.
🔹 Step 3: Intelligent Approval System
One of the top advantages of Accounts Payable automation is invoices flowing directly to the correct approvers based on pre-set rules.
For example, if an invoice is:
📌 Over £500 but under £5,000? It goes straight to the finance manager.
📌 Over £10,000? It's transmitted to the CFO for final sign-off.
📌 From a preferred supplier? It's fast-tracked for endorsement.
🔹 Step 4: Automatic Payment Processing
After approval, the software schedules remittances to capture early-pay discounts when available. You won't incur any more late fees from mistakes or snail-pace invoice processing!
🔹 Step 5: Reconciliation & Reporting
All of your transactions are logged and categorised for easy reconciliation. Want to see:
📊 All pending invoices?
📊 Total AP costs for the month?
📊 Who approved which payments?
It's all at your fingertips in real-time dashboards and reports—no more digging through spreadsheets.
What Tasks in Accounts Payable Can Be Automated?
Automation doesn’t just speed things up—it eliminates many of the repetitive manual processes and errors that slow your team down.
Get your AP systems automated and stop:
❌ 1. Entering Data by Hand
Instead of manually keying invoice details, automation tools extract everything needed for processing.
❌ 2. Categorising Invoices
Stop digging through emails and PDFs. AP software auto-tags invoices based on vendor name, department, expense type, and other fields.
❌ 3. Sorting Supporting Documents
POs, delivery confirmations, and other related documents are automatically linked and logged.
These may seem like small tasks, but treating your finance teams to the benefits of Accounts Payable automation can save them hundreds of hours or more annually.
What Are the Benefits of Automating Accounts Payable?
Saving time is great, but there are many more benefits of Accounts Payable automation! There are massive time savings, fewer errors, and stronger financial control, to mention a few.
But let’s mention them all. Here's a run-down of the benefits you'll enjoy when you ditch manual AP for automation:
1. Improved Productivity & Time Savings
AP departments waste tons of man-hours processing invoices, performing data entry, and chasing down approvals.
✔ Invoices are scanned and processed automatically.
✔ One-click approvals = no more waiting.
✔ Payments are automatically scheduled and sent.
2. Improved Accuracy
A single typo can lead to incorrect payments and other discrepancies.
✔ AI-powered OCR technology eliminates manual data entry errors.
✔ Automated invoice-to-PO matching prevents discrepancies.
✔ Payment validation processes flag and resolve errors.
3. Reduced Costs
Manual AP processes aren't just slow—they're expensive. Late fees, inefficiencies, and processing costs add up fast.
✔ Eliminate late fees and penalties with automated payment scheduling.
✔ Capitalise on early-payment discounts.
✔ Reduce operational costs by up to 80% by eliminating manual processes.
4. Stronger Compliance
Manually reviewing invoices creates headaches for auditors and regulators alike.
But with automation?
✔ Every invoice and approval is logged with timestamps for a complete financial audit trail.
✔ Digital records ensure compliance with financial regulations like SOX & GAAP.
✔ Tax-ready reports are generated automatically, reducing prep time.
5. Fraud Detection
Fraudulent invoices, duplicate payments, and unauthorised transactions cost businesses millions yearly.
✔ AI flags duplicate invoices and suspicious transactions.
✔ User-based access controls prevent unauthorised payments.
✔ Automations guarantee every transaction is validated.
6. Better Cash Flow
Poor visibility of outstanding invoices and pending payments threatens adequate cash flows.
✔ See all pending invoices and payment obligations in real time.
✔ Schedule payments strategically to optimise cash flow.
✔ Generate instant reports on payables and upcoming liabilities.
7. Happier Vendors
Late payments not only annoy your suppliers but lead to contract or fulfilment issues if that trend continues.
✔ Ensure vendors are paid on time, every time.
✔ Self-service vendor portals allow suppliers to track payments.
✔ Fewer payment disputes lead to stronger partnerships.
8. Transparency & Visibility
Finance teams need real-time visibility into all Accounts Payable processes.
✔ Dashboards offer a complete view of all invoices and payments.
✔ Track all invoices, approvals, and payments in one place.
✔ Financial reports update automatically with real-time data.
9. Data Security
Paper invoices and email approvals leave businesses vulnerable to all kinds of security risks.
✔ Invoices and payment records are securely stored in the cloud.
✔ Role-based permissions prevent unauthorised access.
✔ All payments are encrypted and authenticated.
10. Improved User Experiences
AP software platforms balance efficiency with user-friendly UIs—for finance teams and business users—that paper or spreadsheets just can't.
✔ Intuitive dashboards simplify interactions.
✔ Smart automation eliminates unnecessary steps.
✔ Approval reminders and mobile access speed up decision-making.
11. Remote Access
Hybrid and remote workers need access to AP platforms outside the office.
✔ Process invoices and approve payments from anywhere.
✔ Cloud-based platforms offer finance teams complete visibility and access to Accounts Payable at all times.
✔ No more reliance on paper invoices or in-person approvals.
12. Full Suite Support
AP automation isn't just for invoices—it integrates with other financial processes, making your entire finance management more efficient.
✔ Expense management—automate employee reimbursements.
✔ Procurement processes—sync purchase orders with payments.
✔ Payroll processing—streamline vendor and contractor payments.
13. Greater Adaptability
Businesses evolve, and their AP processes need to keep pace, too.
✔ Easily integrates with ERP, accounting, and payment systems.
✔ Adapts to changing regulations and tax laws.
✔ Scales as your need and volumes grow—with no added headcount.
The Bottom Line: AP Automation is the Smart Move
AP automation is remaking how finance teams work.
Eliminating manual processes. Fewer errors. Full financial visibility. Businesses can cut costs, strengthen security, and improve cash flow, all while cutting costs and accelerating workflows.
Almost sold? Let's take a quick look at some of the most outstanding AP automation solutions on the market!
Our Selection of Top Accounts Payable Software
Choosing the best fit depends on your company's size, processes, and third-party integrations. However, most offer customisable workflows and options that support almost any business.
Let's run down several of the best solutions that deserve your consideration:
1 of 7
 Airbase |  AvidXchange |  Bill.com |  Compleo Invoice Platform |  FreshBooks |  Tipalti |  MineralTree |
|---|---|---|---|---|---|---|
| For all companies | For all companies | For all companies | For companies with more than 50 employees | For all companies | For all companies | For all companies |
| See software | See software | See software | See software | See software | See software | See software |
| Learn more about Airbase | Learn more about AvidXchange | Learn more about Bill.com | Learn more about Compleo Invoice Platform | Learn more about FreshBooks | Learn more about Tipalti | Learn more about MineralTree |
Airbase: The All-in-One Spend Management Platform
Airbase offers a complete spend management solution for mid-sized to large businesses. The platform centralises AP, expense tracking, and corporate card management, furnishing finance teams with real-time visibility over all of your
spending.
With AI-driven invoice processing, automated approvals, and slick integrations with QuickBooks, NetSuite, and Xero, Airbase streamlines financial process automation from end to end.
Airbase
AvidXchange: End-to-End AP Automation
Mid-sized companies looking for a fully automated AP process should consider AvidXchange. It offers multiple payment options, automated approval workflows, and a vast supplier network to keep AP running smoothly.
With built-in fraud protection, customisable approval processes, and seamless ERP connectivity, AvidXchange is a reliable choice for companies aiming to automate their entire payables process.
AvidXchange
BILL.com: The AP & AR Powerhouse
For small to mid-sized businesses, BILL.com simplifies Accounts Payable with AI-powered invoice capture, automated approval processes, and flexible payment options like ACH and virtual credit cards.
Designed to integrate effortlessly with accounting software, BILL is perfect for businesses that need fast, cost-effective automation without disrupting their existing process and systems.
Bill.com
Compleo Invoice Platform: Enterprise-Grade AP Automation
The Compleo Invoice Platform is an ideal solution for enterprises dealing with high invoice volumes and strict compliance requirements. Built for scale, it features advanced AI data extraction, multi-step approval processes, and ERP integrations with major platforms, including SAP and Oracle.
Compleo's global e-invoicing compliance makes it a powerful choice for companies managing complex AP processes across international borders.
Compleo Invoice Platform
FreshBooks: Simple AP Automation for Small Businesses
For freelancers and small businesses, FreshBooks offers a straightforward, easy-to-use AP solution.
With automated expense tracking, invoice approvals, and built-in payment processing, FreshBooks is designed for businesses that need to manage vendor payments without complex workflows. It's also ideal for small teams that want a simple, all-in-one financial management tool without the steep learning curve—or price tag—of enterprise AP systems.
FreshBooks
Melio: Simplified Payments for Small Businesses
For small businesses looking for an easy, low-cost way to manage AP, Melio makes it simple.
Melio is a B2B payment solution small businesses can use to pay vendors via bank transfer or credit card, even if the vendors only accept cheques. Melio's free ACH payments, flexible payment options, and QuickBooks integration make it perfect for small businesses needing a lightweight, user-friendly AP software automation tool.
Tipalti: Global Payables Made Easy
Tipalti provides a robust, compliance-driven AP platform for mid-sized to large businesses managing international payments. It simplifies global transactions, tax compliance, and supplier management in a single system.
With multi-currency support, automated tax validation, and smooth ERP integrations, Tipalti lets companies pay vendors in an impressive 190 countries while complying with local regulations.
Tipalti
MineralTree: Secure & Efficient AP Automation
MineralTree's TotalAP platform is a powerful mid-market solution that automates the entire AP process with its outstanding suite of AP solutions.
MineralTree captures invoice details, routes them for approval, verifies and then authorises payment, and remits using automation at every step. Sister products like TotalPay and SilverPay corporate credit cards can add complete AP visibility to expenses.
MineralTree
Need More Options?
Explore Appvizer's complete list of AP automation solutions to find your perfect fit! ✅
Final Verdict: Are the Benefits of Accounts Payable Automation Really Worth It?
Absolutely! The benefits of AP automation are undeniable.
Let's recap the biggest takeaways:
✔ Massive time savings—No more manual data entry.
✔ Fewer errors, better accuracy—AI-powered matching prevents costly mistakes.
✔ Lower costs, higher savings—Reduce late fees, errors, processing costs, and fraud risks.
✔ Stronger compliance & security—Audit-ready records and encrypted transactions.
✔ Better cash flow control—Real-time insights into payables and spending.
✔ Stronger vendor relationships—On-time payments keep suppliers happy.
✔ Remote-friendly workflows—Approve invoices and process payments from anywhere.
There’s no argument: manual processes are OUT, and automation is IN!!
If your finance team still processes invoices manually, you're losing time and money—every day. AP automation isn't a cost centre; it's a business growth enabler. It offers your finance team the speed, accuracy, and error-free financial control they need to operate at peak efficiency.
Check out the best software on Appvizer.com and enjoy the many benefits of Accounts Payable Automation. You'll wonder why you waited so long to improve your AP game!