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What is AP Automation?

24th Jan 2023
Brought to you by
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Kefron provides a range of information management solutions including Document Scanning, Accounts...
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AP Automation Finance

AP (Accounts Payable) Automation refers to the use of technology to streamline and automate the process of paying bills and invoices. This can include tasks such as scanning and digitizing paper invoices, routing invoices for approval, and integrating with the company’s financial system to facilitate payments. The goal of AP automation is to improve efficiency, reduce errors, and save time and money.

How Does AP Automation Work?

1. Invoice Received
Invoices are scanned, e-mail, uploaded via the supplier portal and routed to the correct cost centre in our system based on a unique identifier e.g postcode.

2. Dynamic Data Capture
Best-in-class AI technology supported by our managed service.

3. Verification
Supplier validation with business rules to mitigate fraud and duplicate payments.

4. Match, Code & Approve
NON-PO Invoices are routed automatically and notify a manager via email to approve.PO Invoices are automatically matched against a PO & GRN from your Finance system.

5. Post to Finance System
All invoices are posted to the correct entity in your Finance system and ready for payment automatically.

Any captured data can be reported upon. Kefron AP comes with standard reports and pre-built AP Analytics dashboards. Furthermore, custom reports are easy to create. Full visibility of all activities is possible making it easier to comply with audit and legislation requirements.

Why Use AP Automation?

Now the reason you’re likely reading this post – why should your company use AP automation? How is it better than your current invoice process?

  • Improves Productivity: Automation eliminates manual input and reduces the number of errors made. This serves to save your company time and increase efficiency. Additionally, automatic approval is sought by the Kefron system with regular reminders. Invoices can be approved from the relevant party’s phone for ease of use. This allows your team to focus on more engaging and value-added tasks. Employees are more motivated by less repetitive, tedious tasks, improving productivity.
  • Better Control and Visibility: Moving to an automated system provides you with more control over your invoice processing. The system maintains an audit trail throughout. Many AP Automation solutions also provide analytical dashboards. Kefron AP offers 4: the Ageing Dashboard, Documents Received vs. Processed, User Productivity, and Automation at Verification and PO Matching. These allow you to get a clear insight into your AP processes. You can view document statuses, top-performing users and databanks, as well as values.
  • Fraud Prevention: With increased control and visibility, audits are streamlined, and compliance is ensured. You can have peace of mind knowing that all documentation is easily retrievable. OCR is applied to each invoice that goes through the Kefron AP system. This means they are text searchable, making it even easier to find specific documents. You can create custom folders and indexing for better manageability. Your Company Admin must assign anyone on the system a role. This decides who has access to what, ensuring compliance and fraud prevention. Only those with the appropriate authority can view your invoice processing. The audit trail tracks all movement and changes, including who handles each. So, if something is amiss you know who to hold accountable.
  • Improved Cash Flow: With automated processing and approvals, and the removal of errors suppliers paid on time. They are charged and paid the correct amount the first time. Reliable and consistent cash flow improves your business relationships. Your suppliers are then more enthusiastic about recommending and reviewing you.
  • Savings: Reducing time and effort wasted on invoice processing saves your company money. Your team can focus their attention on more value-added tasks for the business. The elimination of human error and fraud reduces this even further.

Data collection and processing take up more than half of workers’ time; these jobs are ideally suited to automation utilising methods that are already accessible today.

AP Automation can help organisations reduce the time and effort spent processing invoices, reduce the risk of errors, and improve visibility across their AP processes.

Considering AP Automation? Download our comprehensive Buyer’s Guide, designed to walk you through the key points finance leaders should consider before investing in an Invoice Automation Solution or chat with an AP team member today.