…is the process by which accounts payable tasks are handled digitally using technology, rather than manually. It has revolutionised the way businesses process and pay their invoices, making the process faster, more accurate, and less expensive.
Table of Contents
This guide explains how AP automation works, its key benefits, how to calculate its ROI, and how to secure buy-in from stakeholders.
How Does AP Automation Work?
Accounts payable automation digitises the entire invoice-to-payment workflow, eliminating manual data entry and approvals. The process typically involves three key stages:
1. Invoice Receipt
Invoices arrive at your business either electronically or on paper.
- Electronic invoices: Sent as PDFs, via B2B/EDI connections, or through a supplier portal, flowing directly into your system.
- Paper invoices: Scanned and converted to digital format using Optical Character Recognition (OCR) and artificial intelligence.
All invoice data is securely captured and stored in the cloud.
2. Matching and Workflow
Once captured, invoices are:
- Automatically matched to purchase orders (POs) and goods receipts (three-way matching), or
- Routed directly to the appropriate person or team for approval.
Approved invoices are then exported to your ERP or accounting software for payment.
3. Archive and Audit
All invoices and actions are securely archived with full audit trails, making it easy to retrieve documents for audits or compliance purposes.
Benefits of AP Automation
Adopting an AP automation solution brings measurable improvements across your business.
Time Savings
By eliminating manual data entry and routing, AP automation significantly reduces the number of human touches per invoice, freeing staff for higher-value tasks.
Improved Efficiency
Automated workflows streamline approvals, reduce bottlenecks, and improve productivity. Integration with your financial systems ensures smooth data flow.
Increased Accuracy
Automated systems validate invoice data early in the process, catching errors, duplicate invoices, and fraudulent requests before payment is made.
Cost Reduction
Automation lowers costs by reducing:
- Manual labour
- Document storage and retrieval
- Printing and postage
- Time spent resolving disputes
Built-in Compliance
With embedded rules and monitoring, AP automation improves compliance and transparency. The system flags suspicious activity, duplicate invoices, and policy violations.
What is the ROI of AP Automation?
When deciding to implement AP automation, it’s essential to understand the return on investment (ROI), which comes from both financial and non-financial benefits.
Financial ROI
- Lower invoice processing costs
- Fewer errors and losses from mistakes
- Improved on-time payments and early-payment discounts
- Reduced supplier queries
- Decreased staffing needs
Non-Financial ROI
- Better control and visibility over cash flow
- Easier audits and regulatory compliance
- Improved supplier relationships
- Higher employee satisfaction
ROI often increases as invoice volumes grow, making automation even more valuable over time.
How to Get Buy-in for AP Automation
Introducing AP automation impacts multiple departments — including finance, IT, procurement, and senior leadership — so it’s important to secure their support.
Tailor your pitch by addressing each group’s concerns:
- For finance: Highlight time and cost savings.
- For leadership: Emphasise improved compliance and control.
- For IT: Explain how the solution integrates securely with existing systems.
- For procurement and suppliers: Show how it improves collaboration and communication.
Frequently Asked Questions About AP Automation
AP automation takes the hassle out of approvals by routing invoices straight to the right person — no chasing, no confusion. Approvals happen faster, with real-time visibility at every step.
Say goodbye to endless email threads. With all invoice data in one place, everyone sees the same information, making it easier to collaborate and resolve issues quickly.
Absolutely. Every invoice is securely stored in the cloud, searchable in seconds, and accessible from anywhere — no more digging through file cabinets.
The system checks each invoice against your records and flags any duplicates before they’re paid, protecting your business from costly mistakes.
Yes — built-in compliance checks and monitoring spot suspicious activity and unauthorised charges, helping you stop fraud in its tracks.
Many AP automation solutions include a supplier portal, where vendors can submit invoices, track their status, and communicate directly — keeping everyone informed and happy.
Start Your AP Automation Journey
By automating accounts payable, your business can save time, reduce costs, and improve accuracy — all while enhancing control over your financial processes. Whether you process hundreds or thousands of invoices monthly, Zahara’s Accounts Payable automation software helps you achieve these benefits quickly and effectively.
