Managing invoices and payments can be a tedious task for small businesses. Thankfully, accounts payable (AP) automation software for small businesses makes this process easier and more efficient. This article explores the top AP automation solutions available, helping you choose the right one for your needs.
What Is Accounts Payable Automation?
Accounts Payable automation refers to using technology to streamline and automate the process of managing and paying invoices. This includes receipt, capture, coding, approval, and payment. Technologies like Optical Character Recognition (OCR), Artificial Intelligence (AI), and Machine Learning (ML) are often employed to enhance these processes.
Significance
For small to medium-sized enterprises, AP automation is vital. It significantly reduces manual errors, increases efficiency, and improves cash flow management. By automating legacy accounting systems, businesses can escape lengthy manual data entry and gain real-time insights into financial data. Such automation helps prevent late fees, cut down on errors, and enhances decision-making capabilities.
Benefits of AP Automation for Growing Businesses
Cost Savings: AP automation can trim costs associated with manual processing, such as paper, postage, and labor. Automated systems like Centime even convert AP into a profit center by earning interest on AP funds, effectively making AP automation free and enhancing working capital.
Efficiency Improvements: Software such as QuickBooks Online, Bill.com, and Stampli streamline the entire invoice-to-payment process. For instance, Stampli uses an AI-powered bot named Billy the Bot to automate tasks such as capture, coding, and approvals, leading to a more efficient AP process.
Error Reduction: Automated systems outperform human labor regarding accuracy. Digital solutions from companies like Tipalti and Beanworks minimize errors in data entry and discrepancies, which are common in traditional payment processing.
Better Cash Flow Management: Platforms like Xero provide real-time visibility into financial data, allowing for improved cash flow management. Such platforms often support multiple currencies, helping businesses manage finances more effectively.
How to Select the Right AP Automation Software
Choosing the correct AP automation software requires considering various factors. Here’s a clear methodology for selection:
User-Friendliness
The software must be intuitive, even for users with limited accounting knowledge. QuickBooks Online is popular among small businesses due to its simple interface and free guided setup.
Scalability
Select scalable software to meet growing business needs. For example, Sage Intacct provides customizable reports and dashboards, which adapt as the business expands.
Integration Capabilities
Your software should smoothly integrate with existing ERP systems and financial tools. Stampli stands out for its support of over 70 ERPs, allowing swift deployment with minimal disruption.
Customer Support
Excellent customer support can make a huge difference. Centime is recognized for its dedicated customer service, while Bill.com offers support through live chat or call-back requests.
Top 10 Accounts Payable Automation Solutions
Here’s a closer look at ten leading AP automation solutions:
| Software | Pros | Cons | Pricing |
|---|---|---|---|
| QuickBooks Online | Easy to use, extensive capabilities, free guided setup | Limited support, expensive | Starts at $65/month |
| Bill.com | Cost-effective, robust international payments | Payment delays, manual integrations on basic plans | Starts at $45/user/month |
| Stampli | Highly customizable, AI-powered automation | Pricing not public, requires sales contact | Quote-based |
| Centime | Turns AP into a profit center, excellent ERP integrations | Limited ERP integrations | Quote-based |
| Tipalti | Reduces data entry tasks significantly, global payments | Pricing starts at $99/month | Starts at $99/month |
| Xero | Multi-currency support, real-time cash flow visibility | Needs additional setup for complex workflows | Plans starting at $9/month |
| AvidXchange | Industry-specific features, seamless ERP integration | Limited cash management | Quote-based |
| Airbase | All-in-one AP automation, multicurrency bill pay | Requires sales contact for pricing | Quote-based |
| Beanworks (Quadient AP) | Simplifies AP for Sage users | Best for Sage users only | Quote-based |
| Kashoo | Supports multiple currencies, automated bill payments | Limited scalability | Plans starting at $19.95/month |
Factors to Consider When Choosing AP Automation Software
Selecting the right AP software requires careful consideration of several factors:
User-Friendliness: How easy is the software to navigate? QuickBooks Online excels here, attracting users avoiding complicated setups.
Scalability: Ensure that the software can grow with your business needs. Scalable solutions like Sage Intacct allow creating customizable reports as your company expands.
Integration Capabilities: Choose software that integrates well with your existing systems. Stampli, with its support for over 70 ERPs, is a great example here.
Customer Support: Effective customer support is crucial. Look for options with dedicated teams like Centime, ensuring help is always available.
Future Trends in AP Automation
As the AP landscape evolves, certain trends are emerging:
Emerging Technologies
Technologies such as AI and ML continue to enhance AP automation. Stampli’s integration of AI for task automation is an excellent example of what is becoming standard.
N8N Integrations
Workflow automation tools like N8N improve financial automation further. These tools create customized workflows, maintaining a streamlined process across multiple AP automation platforms.
Cloud-Based Solutions
Cloud-based solutions are growing in popularity, allowing remote access and real-time data visibility. Products like QuickBooks Online and Xero lead this trend, simplifying financial management.
Common Questions About AP Automation
Here are some frequently asked questions:
What are the primary benefits of AP automation?
AP automation primarily offers cost savings, improved efficiency, error reduction, and enhanced cash flow management.
How does AP automation integrate with existing ERP systems?
AP solutions like Stampli and Centime integrate effortlessly with various ERP systems, ensuring operational continuity.
Can AP automation handle international payments?
Yes, platforms like Bill.com and Tipalti are well-equipped for international payments, including ACH and wire transfers.
How can N8N integrations improve AP automation?
N8N enables the creation of tailored workflows, increasing the efficiency of financial processes by connecting multiple AP automation tools.
Success Stories in AP Automation
Successful Implementation of Stampli
Many businesses, including some in healthcare, have successfully integrated Stampli. For example, a healthcare provider increased its AP efficiency by 70% while boosting accuracy by 90%.
Centime's Approach to Profitability
A small business using Centime successfully turned its AP function into a profit center by earning interest on its AP funds, resulting in enhanced working capital without additional business costs.
Notable Insights from Industry Experts
"AP automation software is equipped with intelligent optical character recognition (OCR) technologies which integrates both artificial intelligence (AI) and machine learning (ML) softwares to automate accounts payable invoice and payment processes." - Stampli
"Centime allows businesses to earn interest on their AP funds, effectively making AP automation free and boosting working capital." - Centime
Visual Comparison of Features and Pricing
| Software | Key Features | Pricing |
|---|---|---|
| QuickBooks Online | Automated bill payment, invoice entry, bank integrations | Starts at $65/month |
| Bill.com | Automated AP and AR, international payments | Starts at $45/user/month |
| Stampli | AI-powered automation, customizable workflows | Quote-based |
| Centime | Earns interest on AP funds | Quote-based |
| Tipalti | Automated invoice processing, global payments | Starts at $99/month |
| Xero | Multi-currency support, automated bill payments | Plans starting at $9/month |
| AvidXchange | Industry-specific features | Quote-based |
| Airbase | All-in-one platform | Quote-based |
| Beanworks | Simplifies AP for Sage users | Quote-based |
| Kashoo | Automated bill payments | Starts at $19.95/month |
Streamlining Your Financial Processes
Staying on top of finances is critical for small businesses. Exploring the best AP automation software available can save your team time and help manage costs effectively. If you're looking for help with automating your workflows, check out automake.io. We specialize in creating custom workflows to connect your systems with full video run-throughs and quick delivery.
