What Is AP (Accounts Payable) Automation?
As the name suggests, accounts payable automation digitises and automates your accounts payable tasks. Advanced AP automation platforms combine AI and machine learning technology to free you and your team from repeated manual tasks, which rob you of time and money.
Whether data entry, manual approvals, or matching your invoices with POs, if you have an effective AP automation solution in place, all of these tasks are done accurately and in a timely manner.
How Does AP Automation Work?
Think of AP automation as a smooth, end-to-end journey for every invoice. Instead of juggling spreadsheets, paper, and endless approvals, your process follows a clear, automated path:
- Invoices Arrive → Data Captured
Invoices arrive via email, PDF, or paper. The AP automation system instantly captures the relevant data, eliminating manual entry and reducing errors.
- Approvals Routed → Validate and Approve
From there, invoices are routed to the right people for approval, following your company’s workflow, without chasing anyone down. The software also automatically matches invoices against purchase orders and flags any discrepancies for review.
- Clear Audit Trail → Every Action Recorded
Every transaction is logged, creating a transparent audit trail so you always know the status of the invoice and who approved what.
- Data Integrated with Accounting Software
Once reviewed and approved, all invoice data is integrated with your ERP or accounting system. There is no double entry, no missed transactions, just clean, accurate records.
What Are The Benefits of AP Automation?
When you’re handling invoices manually, it’s easy to feel like your finance team is stuck in a loop of data entry and fixing errors. AP automation breaks that cycle and gives you back control. Here’s what it can do for you:
Efficiency & Time Savings
Think about how long it takes to process an invoice today. With automation, you can cut that time from days to minutes. Without manual data entry, back-and-forth emails or paper trails, your invoices flow automatically through approvals.
Accuracy & Risk Reduction
If you’ve ever had to clean up duplicate payments or deal with compliance issues, you know how costly mistakes can be. Automation reduces that risk by validating invoice data and building a clear audit trail. Take Evergreen Care as an example. By implementing an AP automation system, they simplified their audit processes, reduced errors, and gained confidence that every invoice was accurate and compliant.
Financial Control & Visibility
Do you know exactly what’s waiting for approval right now? With AP automation, you do. Real-time dashboards give you visibility into every invoice, payment, and cash flow trend, so you can make smarter decisions, faster. See how Cambridge United made their approvals 7x faster with an advanced AP automation system.
Employee Experience & Strategy
Instead of spending hours typing data or chasing signatures, your team can focus on higher-value work, like vendor management, budget planning, or strategy sessions. That means less frustration and more meaningful impact.
Rapid ROI
The best part? Automation pays for itself quickly. Many businesses see ROI in months, not years, thanks to the efficiency gains, reduced errors, and savings on labour costs. The higher your invoice volumes, the faster the payback.
Does AP Automation Cut Costs?
Yes, AP automation can make a noticeable difference to your invoice processing costs.
Manual processing involves data entry, paper handling, chasing approvals, and fixing errors or duplicates. On average, each manual invoice can cost AU$12–AU$15 (£6 – £8) to process, not including the hidden costs of delays.
Automated processing streamlines invoice capture, validation, and approvals, bringing costs down to around AU$2–AU$5 (£1 - £2) per invoice. That’s a significant reduction, especially when you multiply it across hundreds or thousands of invoices each month.
Beyond the direct per-invoice savings, automation also helps reduce:
- Labour costs by freeing your team from repetitive manual work
- Error-related costs from duplicate payments or incorrect entries
- Missed early payment discounts by speeding up approvals
- Storage and archiving costs by keeping digital records instead of paper
The savings become even more noticeable as your invoice volume grows. If your business experiences seasonal spikes or rapid growth, having AP automation is a strategic advantage.
Use our Savings Calculator to see how much your business could save by moving from manual to automated processes.
Why Should You Automate AP?
Now that you know the benefits, it’s only natural to ask: Why should I embrace AP automation?
Remember that ‘strategy session’ you have been meaning to conduct with your team? With manual processes consuming hours each week, it’s hard to find the time. AP automation changes that. With repetitive invoice processing tasks off the table, your team can focus on planning, forecasting, and strategic decision-making.
The advantages extend well beyond efficiency:
- Improved cash flow: Faster approvals and automated payments help you optimise working capital.
- Smarter use of finance resources: Your team can spend more time analysing data and supporting strategic initiatives.
As your business grows, AP automation scales with you. Whether you’re expanding locations, handling seasonal spikes, or onboarding new suppliers, your finance processes remain streamlined, accurate, and reliable.
Is AP automation secure?
Absolutely. When you switch to a modern AP automation platform, your finance team benefits from enterprise-grade security built to protect your business.
You stay in control with:
- Multi-factor authentication (MFA): Only verified users like you and your team can log in.
- Role-based access control: Ensure that only the right people can view, edit, or approve invoices.
Automation also helps reduce fraud risk compared with paper invoices or unsecured spreadsheets. Those manual processes you’re used to? They’re prone to being lost and unauthorised approvals.
Plus, modern AP platforms evolve continuously to defend against new cyber threats, keeping your data safe and your team compliant.
How Much Does AP Automation Cost?
The cost of AP automation isn’t one-size-fits-all, it depends on factors like your company size, the number of invoices you process, and the features you need.
Pricing models of AP automation vary:
- Per user: Costs increase as your team grows.
- Per invoice: You pay based on the volume of invoices processed.
- Subscription tiers: Fixed monthly fees with a set bundle of features.
When evaluating the real value of AP automation, it’s important to look at the ROI: the time you save, fewer manual errors, stronger cash flow management, and avoiding costly late fees.
Many platforms now offer scalable plans, so your AP system grows alongside your business, no need to rip and replace as you expand.
When comparing providers, ask yourself: Does this pricing model make sense for how my team works today, and where we’ll be in the future?
Is AP Automation Worth It For Your Business?
Every AP automation platform is different. The challenge is finding the one that’s the right match for your business. While many of your competitors remain tied to slow, traditional invoice processes, you can step ahead by adopting automation.
With the right solution in place, your finance team can process invoices faster, reduce errors, and focus on the work that truly drives value. In other words, automation doesn’t just make your processes smoother — it gives you an advantage.
Not sure where you stand today? Take five minutes to complete our free AP Audit Checklist and see exactly how your current process measures up.
How to Choose an AP Automation Software?
Choosing the right AP automation platform starts with your business needs. Are you chasing efficiency, compliance, visibility, scalability, or cost reduction? Keep those priorities in mind while choosing.
Next, think about integration. Your new platform should work seamlessly with your accounting software or ERP, otherwise, you’re just creating more work.
Don’t forget the features that make life easier: invoice capture, validation, approval workflows, reporting, and customer support. And when it comes to security, you can’t compromise. Look for strong audit trails, data protection, and compliance with industry standards.
Scalability matters too. Your AP system should grow with you, flexing for seasonal peaks or changes in process. Add to that a great user experience, intuitive design, reliable customer support, and smooth onboarding, and your team will actually want to use it.
Finally, weigh up ROI. That’s where AP automation pays for itself.
What Is The Best AP Automation Software?
The “best” AP automation solution isn’t the same for every business. It depends on your workflows, goals, industry, and existing systems. The ideal platform aligns seamlessly with the way you work, scales as your business grows, and adapts to multiple locations, seasonal and growth-driven spikes.
Ease of use is just as important: intuitive dashboards, clear workflows, and smooth onboarding make adoption across your finance team simple and stress-free. Choosing the right solution today means you’ll improve efficiency and give your team the flexibility to respond to new challenges, and stay ahead of the competition.
We’ve compiled a comprehensive competitor matrix to help you make the right choice. It compares the leading AP automation platforms side by side, highlighting features, scalability, integrations, and usability so you can see which solution aligns best with your business needs. The matrix makes it easy to identify which platform is the right fit because the “best” is different for every business.
Final thoughts
AP automation isn’t just a tech upgrade, it’s a way to transform your finance function.
Whether your goal is efficiency, accuracy, scalability, or all of the above, automation scales with your business and delivers measurable ROI. The question isn’t just if you should automate, it’s when.
Take the next step today: explore how AP automation can streamline your processes, free up your team, and give you the control and visibility your business deserves.
