Complete Guide to Accounts Payable Automation

AP Automation Benefits

Saves time and energy

With AP automation tools like RBC PayEdge (opens in a new window), you can swap hours of tedious manual tasks with an integrated, digital system. Here’s an overview that shows you some common manual AP tasks contrasted by their efficient, automated counterparts.

Customizable to your unique payable process

AP automation can adapt to your unique payable workflow by allowing you to:

• • Set up user profiles and permissions: With accounts payable software, you can customize and adjust user permissions at any time (we dive deeper into permissions later in this article). These internal controls give you peace of mind while streamlining your payable process.
• • Create custom approval rules: Instead of sending a chat or email every time you need a payment approval, automatically route the payment to the right people using custom rules (more on that later in this article).
• • Pull money from multiple funding sources: Do you find that waiting for sufficient funds holds up your payable process? With RBC PayEdge, you can combine funds from multiple sources to fill cash flow gaps.
• • Pay via credit card: Speaking of cash flow gaps, you can pay your vendors and suppliers via credit card with RBC PayEdge, even if the recipient doesn't accept card payments. This way, you can maximize your card rewards and benefits.
• • Record your suppliers' preferences: Instead of tracking down old files or emails to find your recipient's preferred payment method (or unique payment instructions), you can store that data in a digital profile via AP automation software.
• • Choose and adjust your pricing plan: With RBC PayEdge, your pricing plan (opens in a new window) is always flexible. If you handle lower payment volumes, you can pay as you go ($0 monthly fee). If you have higher payment volumes (200-500+ payments per month), you can choose a subscription plan.

Provides better transparency

Transparency is extremely important in the (often complex) world of accounts payable. Whether you're checking on a payment status, generating a report to present to stakeholders, seeking new ways to optimize your workflow or taking part in an internal or external audit, it's important to always have a clear window into the nitty gritty of your payable process. By serving as a centralized platform that displays real-time, accurate data on your payable workflow, you can consider AP automation your crystal-clear windowpane.

It gives you a current view of all the data surrounding your payments, vendors, suppliers, user actions and more. This way, you can:

• • Identify mistakes and inefficiencies faster
• • Generate accurate up-to-date reports
• • Avoid messy paper-based audits
• • Strengthen your internal and external defences against fraud

Not only does this make your day-to-day work easier, but it also helps your company comply with industry standards and regulations.

By digitizing your payable workflow, accounts payable software integrates and centralizes data surrounding invoices, payments, vendors, suppliers, user actions and timestamps. These capabilities make it easier for you and your team to track progress, identify errors, compile accurate real-time reports, find bottlenecks and conduct internal and external audits.

Reduces mistakes

Speaking of identifying errors, AP automation also helps you reduce mistakes, so you don't have to identify and fix them. It does so by allowing you to:

• • Import vendor profiles and update their payment preferences
• • Import payments and upload invoices to reduce duplicates or missed invoices that slip through the cracks
• • Identify mistakes and inefficiencies in real-time via user trails and timestamps
• • Integrate with your accounting software to automatically reconcile payments
• • Store your payment data digitally, so you can easily double-check it

Helps your company scale

Scaling your company is an exciting endeavour, but it doesn't come without growing pains—internally and externally.

AP Automation Solutions

Now that we've covered a few key benefits of AP automation, let's explore some common ways you can make the most of this innovative technology.

Integrate it with your accounting software

Do you use an accounting software platform to digitize some of your AP process? If so, you can usually integrate it with your AP automation platform to make your payable process even easier. When you integrate these two technologies, you can automatically import your invoices and reconcile your payments—two steps of the payable process that can feel very tedious if you do them manually.

RBC PayEdge integrates with QuickBooks Online, Xero and Sage Accounting to further streamline your payable process.

Customize your user roles and permissions

AP automation software allows you to create user profiles with specific roles and permissions. With RBC PayEdge, you have four default user roles with built-in (customizable) permissions at your fingertips:

• 1. Data Entry Clerk
• 2. Approver
• 3. Admin
• 4. Super Admin

You can also create custom roles with specific permissions to suit your payable process and business structure. Plus, you can modify these permissions at any time.

Set up digital approval rules

One huge perk of AP automation is that you can digitally route your payment approvals—no matter how complex they may be. This way, approvals won't get lost in an inbox or a stack of paper your team has to hunt down.

With RBC PayEdge, you can create approval rules that specify which users have the power to approve payment orders. You can also limit the dollar amount they're allowed to approve. These are just a few examples—you can fully customize your approval rules to ensure they match the controls you already have in place.

Optimize vendor and supplier management

While a messy, manual AP process can lead to slow processing, missed payments, poor communication and more, AP automation can help you improve your vendor relationships. From freelancers to suppliers, these partners help power your business, so keeping them feeling happy and appreciated is important.

With everything on one digital platform, you can use AP automation to keep track of project, invoice and contract deadlines, track your vendors' preferences, combine funds to complete faster payments, proactively manage your payment data, send automatic remittance to your recipients, and so much more. The result? Happy, thriving partnerships.

Establish internal auditing systems and schedules

Audits serve an essential role in the ecosystem of accounts payable. Regularly scheduled internal audits can be helpful to ensure your accounting records are up to date, so you can confidently compile reports, share data with your team and partners and know that you've accurately paid your vendors and suppliers.

By establishing internal audit systems and schedules (and digitally documenting them), you can make it easier for new employees to jump into the process if necessary.