The Key Benefits of Accounts Payable Automation Software

by Jono Bonifant on 28 November, 2022

Transitioning to accounts payable software can be a game-changer for businesses, especially within the construction sector.

Traditionally, the industry has been burdened with manual processes and paperwork, leading to delays, errors and inefficiencies.

However, the introduction of accounts payable automation software revolutionises how construction companies manage their financial processes.

With automation, invoices flow seamlessly through the approval process, reducing bottlenecks and accelerating payment cycles.

Let’s explore the transformative advantages that await your business.

What is accounts payable (AP) automation?

Accounts payable automation is the process of using technology to streamline and automate the tasks involved in managing and processing supplier invoices.

Instead of manually handling paper invoices, AP automation software digitises the entire process, from invoice receipt to payment approval and processing.

This includes tasks such as data capture, invoice matching, routing for approval and integrating with your accounting system for payment.

With AP automation, you can significantly reduce the time and effort required for invoice processing, minimise errors and improve visibility into financial operations.

account payable automation

7 Major Benefits of Accounts Payable Automation

1. Faster month-end closeouts

Say goodbye to the tedious hours spent on manual data entry and paperwork at the end of every month. With accounts payable automation, you can achieve warp-speed closeouts, reducing the time taken from weeks to just a few days.

Streamlining this process eliminates the need for manual data entry, reducing errors and ensuring greater accuracy. Now, your finance team can focus on vendor analysis or budget management rather than being bogged down by administrative tasks.

“Lentune has freed up our accounts payable team to actually do value-add activities; we’re not just manually inputting data anymore.”

Andrea Compton

Finance Manager - HEB & Downer NZ joint venture

2. See all your numbers in one place

No more guessing games or sifting through stacks of paper. Accounts payable automation provides a clear, consolidated view of invoices throughout the payment cycle.

This not only enhances visibility but also enables businesses to identify budget creep before it becomes a major issue. Having all the numbers in one place empowers better decision-making and financial control.

3. Sign-off approvals in a flash

Access invoices and approval workflows from anywhere, at any time. No more chasing paperwork or wondering who has approved what.

With accounts payable automation, you can streamline the approval process with digital signatures and automated routing. Just one click, and it’s done!

Whether you’re in the office or on the go, you can keep the workflow moving smoothly, ensuring timely payments and happy vendors.

4. Zero payment whoopsies

Wave goodbye to lost, misplaced or duplicated invoices. Accounts payable automation streamlines everything, from purchase orders to accurate cost coding.

By centralising invoice management and automating data entry, the chances of errors are significantly reduced. Rework, delays and extra costs become a thing of the past, giving your finance team peace of mind and ensuring payments are made accurately and on time.

5. Negotiate better terms with suppliers

With accounts payable automation, you have access to valuable data and insights that can strengthen your negotiating position with suppliers.

By having a clear view of your payment history, cash flow and spending patterns, you can identify opportunities to negotiate better terms, such as discounts for early payment or volume discounts.

This not only improves your bottom line but also fosters stronger relationships with your suppliers.

“Lentune’s great value for money. I think we would have made back our investment already in terms of picking up pricing issues and negotiating better prices with suppliers.”

Luke Long

General Manager - Exclusive Linings

6. Enhance your audit trail

Accounts payable automation provides a comprehensive audit trail of every invoice, approval, and payment, from receipt to reconciliation.

This detailed record ensures compliance with regulatory requirements and internal policies, as well as facilitates audits with ease.

With a transparent audit trail, you can confidently navigate audits and inquiries, demonstrating accountability and transparency in your financial operations.

7. Improve vendor relationships

By streamlining the AP process and ensuring timely payments, you can enhance your relationships with vendors.

With automation, you can avoid late payments, resolve disputes quickly and provide vendors with visibility into the status of their invoices.

This fosters trust and reliability, leading to better terms, discounts, and collaboration opportunities. Ultimately, strong vendor relationships contribute to smoother operations and better outcomes for your business.

Automate your accounts payable processes with Lentune

Tired of drowning in paperwork and spending countless hours manually processing invoices? It’s time to streamline your accounts payable process with Lentune.

Our invoice automation software transforms how you handle invoices — saving you time, reducing errors and improving overall efficiency. Here are some key benefits of automating your accounts payable with Lentune:

Time-saving automation: Say goodbye to tedious manual data entry. Lentune automates invoice processing, freeing up your team to focus on the big stuff.
Gain comprehensive insights: Navigate through your check screen to view all pending invoices sorted by project, supplier and approver. Yes, you read it right —all the numbers are in one place.
Rapid price verification: Instantly verify invoice pricing against agreed supplier rates prior to approval. Any discrepancies trigger automatic credits sent to suppliers, ensuring accuracy and cost savings.
Effortless one-click invoice approvals: Speedily approve payable invoices with automated PO-to-invoice matching. Seamlessly transfer payment data to your financial software with just a single click.
Seamless integration: Lentune seamlessly integrates with your existing systems, allowing for smooth data exchange and eliminating the need for manual data entry across multiple platforms.

Frequently Asked Questions

Manual accounts payable involves paper-based processes, manual data entry and reliance on spreadsheets for tracking and reconciling invoices. This approach is time-consuming and prone to errors. In contrast, automated accounts payable means using accounting software to streamline invoice processing, approvals and payments. Automated processes reduce manual intervention, improve accuracy and provide real-time visibility into financial data.

Accounts payable automation is important for businesses as it enhances efficiency, accuracy and cost-effectiveness. By streamlining invoice processing, approvals and reconciliation, automation saves time and reduces the risk of errors associated with manual data entry. This efficiency leads to cost savings, improved vendor relationships and enhanced compliance.

Exclusive Linings, a Lentune customer, is a prime example of how much time and money AP automation can save your business. After using Lentune for just 5 months, they’re saving 40 hours a week — that’s right, they’ve freed up a whole person to focus on other parts of the business. By picking up pricing issues and negotiating better terms with suppliers, they’ve more than made back their monthly cost for the software.

Accounts payable automation simplifies the process by automating key manual tasks such as invoice capture, price checking, invoice approval and payment processing.

Here’s how it works:

Invoice Automation software captures invoices directly from your email inbox and then extracts the key data, such as supplier name, invoice number, due date and pricing.
The software will verify the invoice details by matching them to POs and delivery notes, and checking against any agreed pricing, often referred to as 3-way matching
The software then routes the invoice to the appropriate approver for review and approval, streamlining the approval process.
Approved invoices are automatically processed for payment, generating payment instructions for integration with accounting systems like Xero or MYOB.

Yes, AP automation is worth it for businesses. Investing in automation streamlines your accounts payable department, leading to increased efficiency, accuracy and cost savings. By reducing manual data entry and minimising errors, such as duplicate payments, automation enhances productivity and enables businesses to allocate resources more strategically.

Wrapping it up

Although it may feel like a big decision for your business, AP software has a lot of benefits that you and your team will see right off the bat.

It can and will transform the way your company does business and will be felt by both your employees and customers. Minimise the complexity of your accounts payable systems by optimising and streamlining all of your financial systems tailored specifically to your company’s needs.

Start seeing more positive outcomes from your teams with accounts payable software and its direct impact on your bottom line. Once AP automation software is implemented into your company, you will never look back.

Looking to learn more about Invoice Automation and discover how it can transform your accounts payable? No worries, we wrote "The Ultimate Guide to Invoice Automation for Construction". It's packed with valuable insights that will show you why it's an effective solution for your business.

Topics: Invoice Automation

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