Best Accounts Payable Automation Software

Meg June 9, 2025

Hard to believe there are businesses still using manual data entry in their accounts payable workflow. But a shift is taking place. Finance professionals are realizing that investing in accounts payable automation software and digitalization is how to stay relevant in the market. Like to see why, what, and how?

According to Ardent Partners’ 2024 State of ePayables report, organizations using AP automation software reduce invoice processing costs by 80%. Cutting processing times from weeks to days. With the average cost of processing a single invoice manually reaching $15-$40, automation is essential for financial sustainability.

“Accountants recognize the impact technology can have on the growth of their firms and are prioritizing tech investments to move their businesses forward. Nearly half expect to invest in and adopt automation tools (48%), artificial intelligence (48%), and blockchain technology (47%) over the next 12 months.”

Manual data extraction

A day in the life of a CFO…

Invoicing, budgeting, coffee, record keeping, coffee, book entries, financial reporting, cash management, coffee, financial planning, compliance, loan negotiations, coffee…

So many numbers. So much room for error. My eyes are blurring just reading the list of tasks.

But, this person is responsible for managing all the financial activities of the business. Keeping it financially viable and operational. Keeping it alive.

Accounting automation frees up finance professionals’ time so they can focus on more strategic tasks. Digital technologies give them the power to improve and accelerate decision making, mitigate risks, and predict future financial outcomes.

According to Gartner’s 2024 Finance Technology Trends, 76% of CFOs cite process automation as their top priority for technology investment. With AP automation leading implementation plans.

What’s the accounts payable process?

Accounts payable, or procure-to-pay (P2P), manage every debt or liability owned by your business. The AP process workflow includes…

Invoice received

Unpaid invoices are received electronically – EDI, PDF, or receipt via a supplier portal – or in paper format. Basic optical character recognition (OCR) or AI document processing scans the paper invoices, to extract and store the captured data.

Review

The accounts payable team will then review the received invoices. Checking vendor identification, issue date, total, payment date. Invoices will also be matched against purchase orders, goods receipts, etc.

Approval

Once reviewed, the invoice passes for approval, quantity, and price verification.

Record & archive

The expense will then be manually entered in company books, and the invoice data archived.

Payment

The accounts payable department will send electronic payment or checks following authorization and recording of data.

What is accounts payable automation?

AP automation is a process that enables your accounts payable team to process invoices digitally rather than manually. Using AI document processing to perform the repetitive and tedious manual data entry tasks your AP team is currently struggling with. Automating the end-to-end process of accounts payable eliminate errors and save time.

Why automate accounts payable?

Eliminating manual tasks reduces the cost of your AP document processing. Managing your payments and cash flow more efficiently, ensures the payment process is quick and increases the likelihood of benefiting from early payment discounts, while avoiding late payment penalties.

What are the benefits of accounts payable automation software?

The biggest benefit of automating the procurement process? Increased profits. Other advantages of AP automation include…

Time saved

Cutting out the manual stages of invoice processing will speed up your workflows end to end. Yes, there will still be humans in the loop, but the number of manual touches per invoice will be significantly reduced.

Money saved

Labor costs will be reduced, along with the cost of postage, paper usage, document storage, delivery costs, invoice production, etc. The reduction of errors improves the quality of the financial data. And, a faster process means late payments will be avoided, with early payment discounts caught.

Efficiency improved

Payment and invoice automation reduces approval times and increases productivity. Integrate with your financial tech stack and the information flow between systems will be unbroken. Enhanced efficiency improves relationships with vendors and partners.

Accuracy increased

With fewer humans in the loop, the level of errors is reduced. Payment errors – duplicate or fraudulent – will be reduced as invoice data will be validated automatically against ERP information. Bottlenecks will be eliminated and data inconsistencies identified early in the process.

Some accounts payable automation software solutions boast accuracy rates of 98-99%, virtually eliminating the costly errors that hamper manual systems.

Brand trust boosted

Consumers expect full transparency and personalization, so when a business is upfront about its processes, trust increases. The best AP automation software also creates open communication across the board, with your team and vendors having full access to purchase orders, invoice status, and payments.

Audit compliance in the bag

Compliance rules are built in. This means suspicious activities and fraud can be flagged in real time.

Security and regulatory compliance assured

Advanced AP automation solutions incorporate robust security features that help businesses meet key regulatory requirements including SOX, GDPR, and HIPAA.

Sustainability benefits nailed down

By eliminating paper-based processes, accounts payable automation software reduces your organization’s carbon footprint.

What AP tasks can I automate?

While there are many tasks you can automate in accounts payable, cutting processing time and increasing accuracy are the biggies, as they’re going to lead to cost savings. Accounts payable automation software will improve payables-related tasks that include…

Data entry

Automating the data entry of your accounts payable documents speeds up the process and eliminates errors associated with manual data entry.

Invoice matching

Three-way PO matching means you can match invoices and other related documents such as purchases orders and shipping receipts, quickly and accurately.

Coding invoices

Accounts payable automation software increases the efficiency and functionality of your invoice approval workflows.

Approval routing

Sending approvals automatically to all the necessary approvers in the invoice processing cycle enables more efficient tracking in the workflow.

Fraud detection

Accounts payable automation software uses AI to identify unusual patterns or suspicious activities that might indicate fraud attempts, protecting your business from financial loss.

Vendor management

Automated vendor onboarding, information updates, and performance tracking streamline relationships with suppliers and ensure data accuracy.

What’s the ROI of accounts payable automation software?

You’re in finance. You know that when deciding whether to spend money on a new bit of tech, the ROI is part of the yes/no decision.

Financial ROI of accounts payable automation software

• Reduced cost of manual invoice processing
• Supplier questions about payment status reduced
• Losses due to human error minimized
• Increase in early payment discounts
• Reduced employee costs and churn

Non-financial ROI for accounts payable automation software

• Frictionless workflow processes
• Increased control
• Simple auditing and reporting from a unified platform
• Strengthened relationships – customers, vendors, suppliers
• Employee satisfaction – reduced churn

AP automation implementation checklist

Before implementing accounts payable automation software, ensure your business is ready by considering…

1. Process assessment
2. Technology readiness
3. Team preparation
4. Vendor evaluation
5. Implementation timeline
6. Success metrics

How does accounts payable automation software work?

Accounts payable automation software captures and digitizes paper invoices, then passes the invoice data through a virtual workflow, ending in payment to suppliers.

AI capabilities in advanced AP automation

Today’s advanced accounts payable automation software uses artificial intelligence in several key ways…

Intelligent data extraction

AI can recognize and extract data from unstructured documents without templates.

Pattern recognition

Systems learn from past invoices to improve accuracy over time, adapting to new formats and vendors automatically.

Exception handling

AI can flag unusual items and suggest resolutions based on historical data and established patterns.

Predictive analytics

Forecast cash flow needs based on historical payment patterns, helping treasury management and budget planning.

Continuous improvement

Systems become more accurate with use through machine learning, reducing the exception rate over time.

How to choose the top accounts payable automation software

The best accounts payable software will help you create a seamless workflow automation, allowing you and your team to spend more time on business strategy tasks. When choosing the best AP automation software, you should consider…

Your goals

Determine your company’s goals for accounts payable automation.

Vendors

Assess the proposals from each vendor. What features do they offer? How much does it cost? Is there onboarding, ongoing support?

Vendor evaluation criteria

Beyond features, consider these factors when selecting an accounts payable automation software vendor…

• Company stability
• Customer support
• User community
• Innovation roadmap
• Security certifications
• Integration capabilities

Best accounts payable automation software

Accounts payable automation software will streamline your AP process by automating repetitive tasks such as invoice data capture, data extraction, approval workflow, and payment processing.

Accounts payable automation software FAQs

How does AP automation improve the invoice approvals and payment process?

How can AP automation solve problems with invoice-related communication?

How does AP automation software stop duplicate payments?

Does AP automation software help prevent invoice fraud?

Will AP automation solutions integrate with my financial/ERP systems?

What’s the typical implementation timeline for AP automation?

Can AP automation handle international invoices and payments?

Ready to up your accounts payable game?

**Free eBook: Cost of doing nothing

It’s time to take the leap. Cost of doing nothing is our free eBook that explains what happens when you do nothing. When you persevere with manual document processing in accounts payable.