A Simple Guide for Companies Ready to Automate Their Accounts Payable Process

The best Accounts Payable (AP) automation system is one that fits your workflow, integrates seamlessly with your accounting tools, and scales as your business grows. Focus on systems that automate invoice capture, approvals, reporting, and security and choose a specialist vendor who offers clear pricing, strong support, and straightforward implementation.

Why Choosing the Right AP Automation System Matters

If you’ve started looking into Accounts Payable automation, you’ve probably noticed it can feel overwhelming, a bit like shopping for a car. There are endless features, technical jargon, and price models that make it hard to compare.

But here’s the truth: the right system doesn’t just pay invoices faster. It helps you save money, reduce errors, and give your team back valuable time. The wrong one creates frustration, hidden costs, and a process that’s just as painful as before, only now, you’re paying for it.

Let’s simplify the decision.

Step 1: Get Clear on What You Really Need

Before you compare software, take a moment to assess your current Accounts Payable process:

  • What’s slowing down the current process?
  • Where are your current risks?
  • How many invoices do you handle each month?
  • Do you manage multiple entities or currencies?
  • What kind of reporting visibility do you need?
  • What business rules such as approver values do you have in place?
  • Do you require multiple approvers?
  • Is your PI process robust
  • How easily is it to find AP information?

Knowing these answers will help you separate the must-haves from the nice-to-haves, so you don’t get distracted by features you’ll never use.

Step 2: Look for the Features That Drive Efficiency

When evaluating an AP automation system, make sure it covers the essentials:

  • Invoice Processing – Optical Character Recognition (OCR) for scanning and extracting data, line-item detail, and exception handling.
  • Workflow Automation – Custom approval paths including your specific business rules, mobile access, and automatic reminders to keep everything moving.
  • Integration – Compatibility with your ERP, accounting, and banking systems so your data flows seamlessly.
  • Reporting and Analytics – Real-time dashboards to track spending, cash flow, and supplier performance.
  • Security and Compliance – Encryption, fraud detection, and complete audit trails for peace of mind.

If a vendor can’t clearly explain how these features work, or why they matter, it’s a red flag.

Step 3: Cloud-Based vs. On-Premise Solutions

One of the biggest decisions you’ll face is where your system lives.

Cloud-based systems are flexible, easy to scale, and updated automatically — ideal for teams that want agility without adding IT burden. On-premise systems may suit larger organisations with strict data control policies, but they require more internal management and upfront investment.

For most businesses, cloud-based automation delivers faster setup, lower costs, and better long-term flexibility.

Step 4: Choose the Right Partner, Not Just the Right Product

An automation system is only as good as the people who help you implement it. When comparing vendors, look for:

  • Proven experience in your industry
  • Genuine customer reviews and case studies
  • Training and ongoing support options
  • Transparent pricing and implementation plans

Ask for a demo. Speak to existing clients. And most importantly, choose a partner who can explain their solution in plain English. Complexity shouldn’t be part of the package.

Step 5: Understand the True Cost of Ownership

Don’t be misled by a low headline price. The total cost of ownership includes:

  • Setup and implementation fees
  • Monthly or annual subscriptions
  • Staff training
  • Integration costs and future upgrades

The right system will save more than it costs; through reduced labour, fewer errors, and early payment discounts that directly improve your cash flow.

Conclusion

The best AP automation system is the one that fits your business, not the one with the most features.

It should simplify your workflow, reduce manual effort, and scale as your company grows. When you choose the right system and the right partner, automation becomes more than just a software upgrade, it becomes a strategic advantage.

Stop chasing paper. Start choosing clarity. Automate with confidence.