Top AP automation features for streamlined invoice delivery and faster payments

If you're a finance leader, you know the drill: constant pressure to slash costs, accelerate cash flow, and improve customers' happiness. Sound familiar? Well, accounts payable (AP) automation has emerged as a powerful solution to these challenges, transforming how businesses process invoices and manage payments. For companies like yours seeking to optimize their financial operations, getting to grips with key accounts payable automation features including advanced OCR software for invoice processing—can be the difference between unlocking serious operational upgrades versus just treading water.

So, what's the big deal about AP automation? It essentially streamlines the entire invoice-to-payment process, eliminating manual tasks and reducing errors while providing greater visibility and control. Modern solutions incorporate invoice management OCR technology to accurately capture data without manual entry. As organizations continue to digitize their operations, implementing the right AP automation features has become not just a competitive advantage but a necessity for maintaining efficient financial operations.

The AR-AP connection: Complementary forces in the cash flow cycle

Accounts receivable and accounts payable represent two sides of the same financial equation—a business transaction viewed from different perspectives. What appears receivable in your books exists as payable to your customer. This complementary relationship forms the backbone of B2B commerce and drives the rhythm of business cash flow.

Now, if your team is handling receivables getting a peek into how modern AP departments operate can give you a real strategic advantage. When your AR processes align with your customers' AP workflows, you smooth out those bumps that often delay payment. Ever wonder how your invoices actually travel through your customers' systems? Can their OCR tech easily grab the info? Do your invoices have all the data fields their AP automation tools expect? Can they sail smoothly through approval workflows?

The bottom line? The more effectively your AR processes complement your customers' AP automation features, the faster your invoices get processed and paid. This harmony between systems doesn't happen by accident—it means your AR team needs to look beyond its own four walls and really get what's happening on the other side of the transaction.

Basics of AP automation features

So, what are these AP automation technologies all about? Essentially, they transform how businesses manage their invoice processing and payments. And here’s a tip for AR teams: you gain significant advantages when you understand the systems your customers are using.

AP automation digitizes the accounts payable process from invoice receipt through payment execution. These systems deliver benefits that impact both sides of the transaction:

• Reduced processing time, allowing invoices to move through approval workflows faster.
• Enhanced accuracy through automated data capture, reducing payment delays from errors.
• Improved visibility into invoice status, enabling better communication between parties.
• Efficient payment execution, creating more predictable payment timing for suppliers.

It's a win-win: buyers process invoices more efficiently, and suppliers receive payments faster. AR teams that align their processes with their customers' AP systems experience fewer delays, exceptions, and payment issues.

Read our solution guide → Automate invoicing into AP portals & get paid faster

At the heart of any AP automation solution are invoice processing capabilities. These features form the foundation upon which other automation functions are built, making them necessary to the success of your accounts payable transformation.

So, what key invoice processing capabilities can really transform your customers' AP operations (and make your life easier)? Look for:

• Automated data capture using OCR and AI technology to extract invoice information.
• Multi-format support to process paper, PDF, and electronic invoices consistently.
• AP portal integrations connecting to over 200+ portals for electronic delivery.
• Intelligent document recognition to classify and route different types of financial documents.
• Validation rules that automatically check for errors and compliance issues.

Automated data capture and extraction

Modern AP automation solutions employ advanced technologies such as optical character recognition (OCR) and artificial intelligence to automatically extract key data from invoices. This capability eliminates the need for manual data entry, reducing both processing time and error rates significantly.

Multi-format invoice support

Invoices come in all shapes and sizes – old-school paper, PDFs, electronic ones. AP automation solutions must be able to process all these formats without creating separate workflows or introducing extra complexity.

AP portal integrations and connections

If you want truly smooth invoice processing for your customers, their AP system needs to play well with supplier portals and AP networks.These connections mean electronic invoices can flow right in eliminating manual handling and accelerating the entire process.

Streamlining AP-AR collaboration

High-performing accounts payable processes don't exist in isolation—they must integrate with the accounts receivable operations of suppliers. AP automation features that facilitate this collaboration create value for both parties.

Digital invoice delivery methods

Modern AP automation solutions support multiple digital delivery channels, allowing suppliers to send invoices in whatever format is most convenient while ensuring buyers can receive and process them efficiently.

Self-service supplier portals

Self-service portals provide a central hub where you, as a supplier, can submit invoices, check payment status, update information, and communicate with buyers. These portals enhance transparency and reduce the administrative burden on buyer's AP departments.

Real-time invoice status tracking

Visibility into invoice status is important for both buyers and suppliers. Real-time tracking capabilities eliminate uncertainty and reduce the need for status inquiries, improving results on both sides of the transaction.

Action Carting Environmental Services demonstrates the impact of streamlined AP-AR collaboration. After implementing Billtrust's solutions, the company achieved a $2 million increase in digital payments and saved 70 hours per month in manual labor. Additionally, they realized $23,000 in annual postage cost savings and achieved 51% electronic invoice presentment.

Accounts payable workflow automation

But AP automation isn't just about processing the invoice itself. The really smart systems go further, automating the whole accounts payable workflow from start to finish. This gives finance teams incredible end-to-end control.

Proper workflow automation delivers these advantages:

• Streamlined approval processes that eliminate bottlenecks and reduce cycle times.
• Automated exception handling to identify and resolve discrepancies quickly.
• Intelligent matching capabilities that verify invoices against POs and receipts.
• Customizable business rules reflecting your specific policies and requirements.
• Escalation paths to prevent delays when approvers are unavailable.

Automated approval workflows

Manual approval processes create bottlenecks and delays in invoice processing. Automated approval workflows route invoices to the appropriate approvers based on predefined rules, accelerating the process while maintaining proper controls.

Exception handling capabilities

Not all invoices follow standard processes—exceptions require special attention to resolve discrepancies or address unusual circumstances. Exception handling capabilities ensure these invoices don't create delays.

Invoice matching (PO, receipt, contract)

Automated matching of invoices to purchase orders, receipts, and contracts is a critical feature that ensures accuracy and compliance while reducing manual effort.

Complete AP automation doesn't stop at just processing invoices. It also brings sophisticated payment management capabilities that optimize cash flow and enhance relationships.

Digital payment processing

Electronic payment methods offer significant advantages over traditional paper checks, including faster processing, lower costs, and enhanced security. The best AP automation solutions will give you plenty of digital payment options to choose from.

Payment scheduling capabilities

Strategic payment timing can optimize cash flow and capture early payment discounts. Payment scheduling features enable finance teams to plan and execute payments at the optimal time.

Early payment discount management

Early payment discounts represent a significant opportunity for cost savings, but capturing these discounts requires optimized invoice processing and payment execution.

International payment support and compliance

Global businesses face additional complexity in managing payments across borders, currencies, and regulatory environments. Comprehensive AP automation solutions include features specifically designed to address these challenges.

Beyond just making things faster, AP automation delivers significant improvements in financial control and compliance – two things that are always top-of-mind for finance leaders.

AP automation enhances financial governance through:

• Audit trails documenting every system action and approval.
• Secure document storage with retention policies that meet regulatory requirements.
• Multi-layered security protocols protecting sensitive financial information.
• Fraud prevention measures that identify suspicious patterns and activities.
• Global compliance capabilities addressing e-invoicing regulations worldwide.

Audit trail and document storage

Audit trails and secure document storage are essential for financial transparency, regulatory compliance, and risk management.

Security and fraud prevention measures

Financial processes are prime targets for fraud, making security measures a critical component of AP automation.

Global e-invoicing compliance support

E-invoicing regulations vary widely across countries and regions, creating compliance challenges for businesses operating internationally.

Read the blog → The AP portal solution — Billtrust BPN invoicing

Making smart decisions based on data? That's what separates the good finance organizations from the great ones.AP automation features that provide analytics and reporting capabilities enable finance leaders to fine-tune processes and nail strategic planning.

Real-time visibility into invoice processing

Being able to see exactly what's happening with invoices - the invoice status and processing metrics - and how your AP process is performing is crucial. Real-time dashboards give you that instant snapshot of your operations, so you're always in the know.

Performance metrics and KPIs

Tracking key performance indicators helps finance teams measure performance, identify improvement opportunities, and demonstrate the value of AP automation.

The Payoff: ROI and business impact

The ultimate measure of AP automation success is its impact on business outcomes and return on investment. Getting clear on these potential wins is key for finance leaders when you're building that convincing case to go for AP automation.

Organizations implementing AP automation features typically experience:

• Significant reduction in processing costs compared to manual methods.
• Substantial improvement in processing efficiency, reducing cycle times from weeks to days.
• Payback periods of less than 12 months for most implementations.
• Significant capture of early payment discounts previously missed due to delays.
• Reallocation of finance staff from transaction processing to strategic activities.

With the right AP automation features in place, finance leaders can transform their accounts payable operations from cost centers to strategic assets, delivering tangible benefits to the entire organization.

Since 2001, Billtrust has focused exclusively on accounts receivable optimization. While we don't offer AP automation tools, our AR solutions work in harmony with a variety of AP systems. Our expertise helps finance teams:

• Deliver invoices in formats that flow into customers' AP automation tools.
• Process incoming payments quickly, regardless of method or source.
• Apply cash accurately with AI-powered matching capabilities.
• Streamline collections with intelligent workflows.

Our AI-powered unified AR platform transforms receivables management, helping 2,400+ customers across 40+ industries process over $1 trillion in invoice dollars annually.

Billtrust partners with finance leaders who recognize that well-designed AR processes improve cash flow, reduce costs, and strengthen customer relationships. Our knowledge of the complete transaction cycle—while maintaining our focus on the AR side—helps businesses succeed in B2B commerce.