Most businesses understand that time is money, and one task that takes up the most time in most companies is invoice processing. Therefore, you’ll need to choose an automated Accounts Payable (AP) solution for your business to make life easier. It’s essential first to understand the available solutions. The two most common AP solutions are electronic invoice processing and AP automation software.
Both solutions offer similar features, such as scanning and processing invoices, making payments, and tracking spending. However, you should be aware of some critical differences between the two types of solutions before making a decision. Keep reading to learn more about the differences between electronic invoice processing solutions and AP automation software.
What Is an Electronic Invoice Processing Solution?
An electronic invoice processing solution is an automated tool streamlining the invoice process by digitising and automating manual paper-based tasks. It allows businesses to scan, approve, and process invoices with minimal effort. Electronic invoice processing software is especially beneficial for companies with high invoice volumes or frequent invoice adjustments. It significantly reduces manual entry time and errors often made by humans.
The key features of an electronic invoice processing system include automated invoice processing, the ability to automatically apply discounts and taxes, document storage capabilities, a built-in accounting system, and reporting tools. In addition, some solutions may include payables integration, workflow management, and supplier portals. These features help businesses streamline and speed up their invoice processing process.
What Is AP Automation Software?
AP automation software is an automated solution for managing AP-based processes, such as purchasing and payment. It helps businesses efficiently handle the entire invoice process from receipt to payment. AP automation software eliminates manual data entry by leveraging pre-built AI-based algorithms to process invoices and payments automatically. Not only does it save time and money, but it also allows businesses to keep better track of their invoices and payments, improving visibility and control.
AP automation software usually includes payment automation, workflow automation, invoice matching, and supplier portals. These features help businesses optimise invoice processing while providing maximum control and visibility.
The Benefits of Using an Electronic Invoice Processing Solution
One of the main benefits of using invoice processing software is increased efficiency. By digitising and automating invoice processing, businesses can save time and money compared to manual processing. Automated invoice processing can also help reduce errors, as the system can double-check accuracy when processing invoices.
Another key benefit of using an electronic invoice processing system is improved visibility. With the help of reporting tools, businesses can gain more insight into their supplier payments and help them identify any trends or issues. This enhanced visibility can help companies to make more informed decisions when it comes to their finances.
The Benefits of Using AP Automation Software
The main benefit of using AP automation software is that it reduces manual labour and processes invoices much faster than manual data entry. This helps businesses save time and money while ensuring that all invoices are accurate. AP automation software can also help streamline the entire invoicing process, from receiving and processing the invoice to sending out payments.
This simplification of the process allows businesses to maintain better control and visibility over their invoicing and payment process. Moreover, AP automation software creates an audit trail, allowing companies to easily trace payments and ensure compliance. It also reduces the risk of fraud and misuse of company funds.
When choosing an automated Accounts Payable (AP) solution for your business, it’s essential to understand the differences between electronic invoice processing solutions and AP automation software. Electronic invoice processing solutions streamline the process by digitising and automating manual paper-based tasks.
At the same time, AP automation software is designed to automate the entire AP-based process, from receiving and processing invoices to sending out payments. As a result, both solutions offer various benefits, from improved visibility and control to reduced manual entry time and errors. So it’s essential to consider the unique needs of your business when choosing the right solution.