Managing the accounts payable (AP) process can be one of the most time-consuming tasks for any business. Manual invoice processing, approvals, and payments not only consume resources but also leave room for errors and inefficiencies. That’s why more and more businesses are turning to AP automation to streamline this function. By automating AP, companies can speed up payments, reduce costs, and improve visibility into their financial data.
In this blog, we’ll explore why automating your AP process could be one of the most important decisions you make for your company. We’ll also highlight how Microsoft’s suite of tools—including SharePoint and the Power Platform—can help you automate and optimize your accounts payable workflow.
Why Automate Accounts Payable?
- Reduce Manual Work and Errors
Manual data entry is prone to errors and can slow down the AP process. From misplaced invoices to incorrect payments, these mistakes can cost businesses both time and money. AP automation eliminates manual data entry by capturing invoice information automatically, ensuring accurate and consistent data flow from start to finish. - Increase Efficiency and Speed
With AP automation, invoice approvals, and payments can be processed in a fraction of the time. Instead of routing physical paper invoices between departments, you can create automated workflows that route digital invoices to the right people for approval. This not only speeds up the entire process but also ensures compliance with your organization’s approval policies. - Improved Visibility and Control
One of the biggest challenges with manual AP processes is the lack of visibility into where invoices stand in the approval process. Automated solutions provide real-time tracking, so you know exactly where each invoice is and when it will be paid. This level of transparency improves control over cash flow and strengthens vendor relationships by ensuring timely payments. - Cost Savings
Manual processes require significant resources to manage, from printing paper invoices to physically routing them between departments. AP automation can cut down on these overhead costs by digitizing and streamlining the entire workflow. Additionally, by processing payments faster, companies can take advantage of early payment discounts offered by vendors. - Enhanced Compliance
Automating AP processes can also help with compliance and audit readiness. The digitization of invoices and approvals creates an audit trail that is easy to track and retrieve. This helps ensure that all processes are consistent, reducing the risk of fraud or non-compliance with regulatory requirements.
How Microsoft Tools Enable AP Automation
When it comes to automating accounts payable, Microsoft tools like SharePoint and the Power Platform can be leveraged to streamline the process.
SharePoint: A Centralized Platform for Document Management
SharePoint provides a centralized location for all your AP documents, offering a way to store, manage, and share invoice data. By utilizing SharePoint’s document libraries, you can ensure that invoices are easily accessible and organized in a way that supports automated workflows. Here are some key benefits SharePoint brings to AP automation:
- Secure Document Storage: SharePoint keeps all your invoices securely stored in one place, with permissions and version control ensuring only the right people have access.
- Search and Retrieval: Advanced search capabilities make it easy to find invoices, even when you’re dealing with thousands of records.
- Integration: SharePoint integrates with other Microsoft tools, making it a powerful foundation for automation.
Power Automate: Streamlining AP Workflows
Power Automate takes your AP processes to the next level by automating repetitive tasks and workflows. You can use Power Automate to automatically route invoices for approval, send notifications to approvers, and even integrate with financial systems for automatic payments. Here’s how it helps:
- Automated Invoice Capture: Power Automate can extract data from incoming invoices and automatically input that data into your system.
- Approvals and Routing: You can set up automated workflows that route invoices to the correct approvers based on pre-defined rules, ensuring a smooth process from submission to payment.
- Integration with Finance Systems: Power Automate connects to your accounting software, allowing for end-to-end automation from invoice receipt to payment.
Power Apps: Custom AP Solutions
With Power Apps, you can build custom applications that support your AP automation efforts. Whether you need a simple app for submitting invoices or a more complex solution for managing vendor relationships, Power Apps makes it easy to create user-friendly apps that streamline the AP process. These apps can integrate with both SharePoint and Power Automate to offer seamless data entry, approval, and tracking functionalities.
- Mobile Access: Employees can use mobile devices to access Power Apps, allowing for quick approvals and data entry on the go.
- Custom Workflows: Power Apps enables you to create forms and applications that cater specifically to your AP process, making automation even more efficient.
Power BI: Real-Time Reporting and Insights
Lastly, Power BI provides powerful data analytics and reporting tools to help you monitor and optimize your AP process. You can create real-time dashboards that show you how long invoices take to get approved, track outstanding payments, and measure cost savings achieved through automation.
- Invoice Tracking: Power BI can generate reports that give you a clear view of all pending, approved, and paid invoices, helping you maintain control over cash flow.
- Performance Insights: Use Power BI to identify bottlenecks in your AP process, optimize workflows, and ensure your automation is delivering the desired results.
Why AP Automation is a Game Changer
Incorporating AP automation into your business processes is a step towards greater efficiency, accuracy, and cost savings. By leveraging Microsoft tools like SharePoint and the Power Platform, companies can automate their accounts payable process from end to end. With streamlined workflows, improved visibility, and faster invoice processing, businesses can focus on growth and innovation rather than managing tedious, manual tasks.
At Segue Systems, we specialize in implementing AP automation solutions that are tailored to the unique needs of your business. Contact us today to learn how we can help you leverage the power of Microsoft’s tools to drive efficiency in your accounts payable department.
