How do you know which are the right processes to be automated and how to evaluate the advantages of doing so in the finance department? For example, what are the benefits of automating the invoice processing workflow?
You could postpone the project, but that would be a missed opportunity. You could choose at random, but that wouldn’t be particularly effective. A better option would be to select the accounting process that’s most likely to create value. But how do you identify a process that is truly suited to automation?
To determine this, the process in question should tick the following three boxes.
Volume: The more substantial and recurring the volume, the greater the benefits automation can deliver.
Procedures: Processes governed by fiscal regulations, accounting rules, or other regulatory frameworks are prime candidates for automation.
Data: The more structured the data, the more suitable the process is for automation.
When these three conditions are met, automating the chosen process yields immediate and significant benefits. If the process in question is core to the business, the value creation extends to customers, suppliers, employees and even shareholders.
One process that meets all these criteria is the AP process. With large volumes of documents, strict regulatory obligations and data that is a mix of both structured and unstructured formats, but can be efficiently standardised through automation, these operations are well-suited for digitalisation.
Some companies may fear that transitioning from a manual process to an automated process will be daunting. That’s doesn’t need to be the case, for several reasons:
State-of-the-art solutions: A variety of accounting automation tools are now available, offering all the features that businesses may need. The range of solutions continues to grow, with more providers emerging, especially as regulatory frameworks evolve across Europe.
Seamless integration: Modern automation tools integrate effortlessly with existing ERP systems or accounting software, as well as external invoice management services. APIs and partner digitalisation platforms enable seamless data exchange, particularly with the global shift towards electronic invoicing compliance.
Cloud-based SaaS solutions: SaaS (Software as a Service) simplifies deployment and implementation. There’s no need for specialised skills to implement AP automation software. SaaS solutions also offer several advantages when compared to on-premise offers, including pay-as-you-go pricing, automatic updates and integration of advanced technologies such as Artificial Intelligence, Deep Learning, Machine Learning and Big Data.
The benefits of implementing AP automation software are clear:
Faster information flow: AP automation improves collaboration across teams, facilitating more efficient and reliable data entry.
Increased productivity: Manual and time-consuming tasks are eliminated, reducing delays and accelerating decision-making processes.
Enhanced regulatory compliance: Automation reduces errors (e.g. in VAT calculations), prevents document loss and ensures traceability and data integrity.
Smoother processes: Automation streamlines operations by preventing bottlenecks in the validation of purchase orders, invoices, expenses, VAT management and other financial documents.
Real-time access to data: Instant access to up-to-date information results in improved visibility and supports timely decision-making across teams.
While focusing on the benefits is essential, AP automation must also be considered within the broader context of digital transformation. As a core part of operational performance, accounting plays a crucial role in supporting organisations’ digital evolution. Accounting documents contain a wealth of data that businesses should leverage efficiently. The possibilities are endless.
This applies not only to large corporations but also to SMEs, where accounting and commercial data are vital for decision-making and operational management. Digitalised invoicing is now essential for optimising processes and improving information management, with CFOs increasingly leading digital transformation efforts.
Selecting the right AP automation software requires careful consideration to ensure that the solution aligns with the business’s needs, existing systems and future growth. Here are the key factors to keep in mind when making this decision:
Start by understanding the specific pain points and processes that need automation. Is the main goal to speed up invoice processing, improve cash flow management, or ensure compliance with regulations? A clear assessment will help you prioritise the features you need in the software. For example, an organisation dealing with high invoice volumes might prioritise tools with Smart Data Extraction capabilities to process invoices efficiently.
The chosen software must integrate seamlessly with existing ERP systems and accounting software to avoid disruptions. Look for solutions that offer native connectors or APIs for other accounting systems that you use. This ensures data flows smoothly between systems, avoiding duplicate entries and reducing the margin for error.
A user-friendly interface is crucial to encourage adoption among employees. The software should require minimal training and offer an intuitive dashboard where users can track processes at a glance. Check whether the software provider offers customer support, onboarding services and ongoing training to ensure the team can maximise the software’s potential.
Compliance is one of the primary reasons organisations invest in accounting automation. Ensure the software complies with the latest regulations and reporting standards in your region. Some countries in Europe, for instance, now require businesses to adopt certified platforms for electronic invoicing. Future-proofing your processes against regulatory changes will minimise risks and ensure ongoing compliance.
As a business grows, accounting processes become more complex, requiring the software to scale accordingly. Choose a solution that can handle increasing transaction volumes and offer additional modules or features, such as expense management or cash flow forecasting, if needed. SaaS-based solutions are particularly flexible, allowing companies to pay only for the features they use and expand as required.
Look for advanced features such as Artificial Intelligence (AI), Deep Learning and Machine Learning, which enhance the software’s efficiency. For example, AI-powered tools can predict payment behaviours, automate matching of purchase orders to invoices and identify anomalies in financial data, helping prevent errors and fraud.
Since accounting software deals with sensitive financial information, robust security is essential. Ensure the solution complies with data protection regulations. Look for additional security features like role-based access control, two-factor authentication and detailed audit trails to protect sensitive data. *
Research the software provider’s reputation by reading reviews, customer testimonials and industry reports. A provider with a solid track record of supporting clients through regulatory changes and system upgrades is a safer bet. Check if they offer efficient support, as well as updates and maintenance to keep the system up to date with evolving technologies.
Evaluate the software’s pricing structure and verify whether it follows a subscription-based model or a one-time licence. SaaS solutions usually offer pay-as-you-go models, which can be more cost-effective for smaller businesses. However, it’s essential to assess the total cost of ownership, including setup, training, and maintenance fees, and compare this with the expected benefits and savings over time.
Many solution providers offer free trials or demos, allowing businesses to test the software before making a commitment. Take advantage of these trials to evaluate whether the solution meets your operational needs, integrates smoothly with your systems and aligns with user expectations. Engaging key stakeholders, such as finance teams, during the trial can provide valuable feedback before finalising the purchase.
Choosing the right accounting automation software is a strategic decision that can streamline operations, improve compliance and enhance productivity. By carefully evaluating the software’s features, compatibility, scalability and security, organisations can ensure they make a choice that supports both current needs and future growth. A well-chosen solution simplifies daily accounting tasks while enabling the business to adapt and grow.
With the right tool in place, businesses can confidently transition from manual processes to automation, unlocking efficiency and creating value for all stakeholders, including employees, customers, suppliers and shareholders.
Delaying the adoption of AP automation software, or neglecting to implement it altogether, can pose significant risks. Many companies postpone such projects due to seemingly valid but ultimately short-sighted reasons: lack of time, insufficient expertise, non-priority investments, incomplete strategies or unmotivated teams. Yet, the longer businesses wait, the greater the risk of struggling to keep pace with technological advancements.
Choosing the right AP automation software is crucial for long-term efficiency and scalability.
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With Yooz, finance teams experience a dramatic reduction in manual tasks, an improvement in process accuracy and significant cost savings. Yooz allows companies to optimise their AP workflows and improve supplier relationships by accelerating payments and providing greater financial visibility. By adopting Yooz, companies take a strategic step toward enhancing productivity, compliance and agility and gain clear competitive advantages.