## Is accounts payable automation software worth the investment? You may have heard of the benefits of AP automation: cost savings, better visibility into invoice status, faster approvals and payment processing, and reduced errors and missed payments. But do you know which AP software features maximize efficiencies for your business? In this article, we’ll help you understand your options for [automating accounts payable](/content/blog/ap-automation/best-practices-accounts-payable-automation/index.html). We’ll explore the different AP automation software solutions and which features finance leaders say are the most important for them and their teams. Then, we’ll walk you through the most common use cases to help you choose the [best feature set](/content/blog/accounts-payable/accounts-payable-software/index.html) for your business. Let’s get started. ## What is accounts payable automation? [AP automation](/content/ap-automation/index.html) refers to software solutions that automate previously manual accounts payable workflows associated with invoice and payment processing. In essence, accounts payable software is intended to replace repetitive manual tasks and let accounts payable departments manage large invoice volumes more efficiently. ### What are the benefits of accounts payable automation? In 2023, Stampli and Probolsky Research surveyed roughly 250 CFOs, finance leaders, and AP employees on the major benefits of AP automation. Here are the five most important benefits of accounts payable automation they identified: - **Improving accuracy:** AP automation reduces erroneous, duplicate, and missed payments. - **Improving processing speeds:** By eliminating manual, paper-based tasks, AP automation reduces processing time and makes approvals and payments faster. - **Deeper/faster data analysis:** Accurate, real-time data and analytics give you better visibility into invoice status, team performance, and cash flow – making it easier to detect fraud and errors. - **Cutting costs:** AP automation improves employee productivity, so you can process invoices faster and scale your business without hiring more staff. - **Improved financial system efficiency:** Seamless ERP integration, real-time data sharing, and customizable workflows boost accounting efficiency across the board. By delivering on these benefits, leading AP solutions like Stampli help businesses take control of their spending. ### How do you automate AP processes? There are several different ways to [automate AP processes](/content/blog/ap-automation/how-to-successfully-implement-ap-automation-a-step-by-step-guide/index.html). Many [ERPs](/content/blog/accounts-payable/ap-integration-for-erp/index.html) and accounting software solutions offer basic accounts payable functionality, such as vendor invoice management and reporting, yet keying in invoices is still manual. These automation tools can be useful to small and medium-sized businesses with simple AP needs and a small volume of invoices. However, to add advanced functionality like invoice coding, approval routing, or payment processing, you often need to upgrade to a higher-priced version or purchase additional modules. Financial automation platforms, such as [BILL](/content/blog/accounts-payable/bill-com-reviews/index.html), also offer AP automation features as part of their basic offering. However, as with ERPs, these solutions often fail to meet customer requirements and only offer advanced AP features at higher-priced tiers. Other AP automation platforms, such as [AvidXchange](https://www.trustradius.com/reviews/tipalti-2022-06-15-11-38-40), provide bundled AP features like invoice processing, approval routing, and payment management, offering more functionality than ERPs or financial automation platforms. AI-powered [automation platforms](/content/blog/accounts-payable/ai-in-accounts-payable/index.html) like [Stampli](/content/ap-automation-platform/index.html) leverage AI and machine learning to learn and understand your organization, business processes, and cost accounting rules. ## What are the features of AP automation? AP automation handles core tasks like invoice entry and coding, invoice matching, approval routing, payment processing, and recording AP transactions in the accounting system. Here are the 6 most important features to consider when choosing an AP solution: ### 1. Customizable AP workflow engine The workflow engine automates repetitive manual AP tasks like invoice scanning, GL coding, and approval routing suggestions. Automating these tasks improves process efficiency and lets you validate, approve, and pay invoices with confidence faster. ### 2. Invoice data capture and GL coding Most AP solutions automate invoice data entry and coding using document capture and optical character recognition (OCR) capabilities to scan paper invoices. Some solutions include advanced invoice processing features such as automated [general ledger (GL) coding](/content/blog/invoice-management/automate-invoice-coding/index.html) of invoice details. ### 3. 2- and 3-way invoice matching Some AP automation platforms claim they “automate” two and three-way invoice matching to detect invoice errors and prevent fraud. They often rely on rigid rules-based matching, which can cause delays, errors, and frustration for AP teams. ### 4. Communications and invoice status tracking Some AP automation platforms unify communications to help AP teams manage invoice processing. They track messages, [manage documents](/content/blog/ap-automation/vendor-document-management/index.html), and ensure messages reach the right people. ### 5. Internal controls and reporting Most AP automation solutions enforce compliance with internal controls. For example, you can enforce separation of duties by establishing user roles and restricting what each user can do. ### 6. Integration and data sharing with ERPs AP automation solutions integrate with ERPs and accounting systems to share transaction data, ensure financial records are kept up-to-date, and reconcile bank statements with accounting records. Leading AP platforms are easy to implement and integrate seamlessly with ERPs. ## How to choose the AP platform with the right features Selecting the right AP automation software can be complicated, but it can be simplified by taking a strategic approach. Your first consideration when [choosing](/content/blog/ap-automation/ap-automation-software/index.html) an AP automation solution is to map your company’s long-term strategy and requirements against the benefits AP solutions can provide. ## Stampli: The only solution designed for accounts payable Stampli is designed by AP professionals for AP professionals. It’s the ideal choice for businesses needing a smart, fast, and flexible AP solution that provides advanced features and exceptional customer service — and delivers real results.