what is ap automation

AP automation, or accounts payable automation, is the process of using software tools to streamline and automate accounts payable processes, removing manual tasks and providing better visibility and control over important financial data. AP automation lets you handle accounts payable processes digitally using technology, rather than manually. Some key benefits of AP automation include reduced invoicing processing costs, reduced losses as a result of human error, fewer supplier inquiries into payment status, increased on-time payment performance, time savings, increased capture of early payment discounts, and reduced staffing costs. AP automation also helps businesses manage spend and obtain insights to make smarter decisions. By using AP software to automate accounts payable, you can link your procurement and accounts payable processes to reduce invoice errors and exceptions, enforce compliance and prevent contract leakage, manage non-PO invoices and invoices for services, increase the capture of early-payment discounts, reduce invoice processing costs, and engage your accounts payable. AP automation is most commonly used for paperless document management, invoice processing, PO matching, and payment reconciliation.