ap automation solutions use these 4 technologies

4 Awesome Technologies can change the landscape of AP automation solutions

If you have a business that makes use of multiple accounts payable (AP), that is, multiple vendors from whom you source any kind of goods or services, it is highly likely that you make use of AP automation solutions. When you’re in a position where you need to evaluate your options, it is essential that you know what exactly you are looking for, out of the solution of your choice. Here’s our article on how how AP automation solutions are transforming the payments industry.

Once you’re done with the goal setting, you need to go out in the field and explore. What will help you evaluate your options in even a better way, is understanding what happens behind the scenes in AP automation. There are 4 vital technologies that you should know about because they can make some amazing improvements in your financial operational efficiency.

Over the next several years to come, AP automation will be widely implemented across businesses and industries. Each of these 4 technologies make it easier for you to process your invoices and payables much quicker and accurately –

ap automation solutions make use of these technologies

APIs (Application Programming Interfaces) – Powering software chatter

There are only a few people who will disagree with you if you say that the importance of APIs in AP automation is unparalleled. They run the entire system. When APIs break, the system breaks.

APIs are software interfaces that software-based computer applications use, to unlock data. They perform important functions like data transfer, integration, software connectivity between software,apps and entire computer systems.

APIs enable software based applications to “speak to” each other. APIs can convert your simple stone-age accounting software into a high performance financial management software. How? Because APIs are connective nodes that you need for generating more opportunities, increasing productivity and make faster payments to ultimately improve customer and vendor experiences.

With regards to the exact functionality of APIs within AP automation, it can be said that they make information exchange possible to increase efficiency of payment and invoice sharing between businesses easier, more reliable, smoother and faster. Other AP automation technologies rely on a sturdy set of APIs for stability.

Machine Learning – Powering insights in AP automation solutions

Data has emerged to be a more valuable corporate asset than many traditional ones put together. It has in fact become a crucial differentiating factor. This is great news for finance buffs. You have a techno-creative opportunity at hand to use all available data points – cash flow, payments, invoices, customer behaviour and many more, to arrive at some really insightful conclusions, which otherwise would not be possible.

This ability to make decisions quickly and efficiently is only enabled through making good use of data. It leads to making intelligent decisions to help implement some major changes to your services like personalized invoicing and payments to your customers, vendors and pretty much whoever else you do business with.

This is where machine learning, which is one of the most popular types of AI, steps in as a differentiating factor when it comes to AP automation solutions.

Machine learning can disrupt the AP automation process. It can analyze historical data and understand the behavioral patterns of vendor payments and vendor invoices. It can also predict the likelihood of continuance of said behaviors. When the suppliers don’t pay up on time, machine learning can leverage the behavioral data to alert the business regarding the same.

Machine learning in AP automation solutions can also enable businesses to predict market or vendor payment risks, forecast future spikes or drops in spending and also the probability of invoice anomalies and/or frauds in general. It can also help identify which vendor has been the most inconsistent in terms of their invoice formats.

Three-way Matching – Improving accuracy in AP automation solutions

In finance, matching is exactly what it sounds like. Matching means you checking an invoice to ensure that the information matches with the information on your sales receipt or purchase order. Mismatching is when something doesn’t match, for example, PO amount doesn’t equate to the invoice amount.

Without a centralized and automated system, it is very difficult to investigate mismatches. It can even take hours. Automating matching processes streamlines AP so you can manage and handle virtually unlimited invoices and POs in relatively no time.

In the event of an audit, you can be mentally assured knowing that all your records are properly organized in a central, accessible and secure location.

Robotic Process Automation (RPA) – Automate manual tasks in AP automation solutions

People usually tend to generalize RPA in terms of its potential. It is often looked at as a software tool which automates repetitive manual processes. Yes, this is a core functionality of RPA, but it is not all. There is much more than RPA can deliver.

RPA can be thought of as an alternative to manual workforce. It is quite literally a digital workforce that consists of programs that give electronic circuits certain instructions to perform tasks.

RPA can be measured based on the number of invoices it can process and how much time & money that subsequently it ends up saving for your business. RPA once implemented can be seen in action doing tasks on your machine like typing in numbers into the account number field of a digital invoice.

This technology is key in use cases where repetitive, routine, high volume tasks need to be performed that take a lot of time and effort to perform manually. While RPA cannot automate each aspect of AP automation solutions, it can certainly free the finance professionals from performing repetitive and senseless tasks, allowing them to focus on what really matters – growth, sustainability, and overall business success.

karbon payout is the ultimate ap automation solution

Karbon Payout has it all.

  1. Our Payout platform acts as a multipurpose platform for payments. Vendor payment is one of its most important implementations. Payout can be configured to automate your vendor payments and relieve you from the pain of sending payments manually and on time.
  2. A user-friendly interface lets our customers spend less time processing the payments and more time on achieving growth in their business. This is why startups & SMEs love transacting with us on a regular basis.
  3. Highly automated payout platform leaves no scope for error. This does save a lot of time and eventually cash for the company by avoiding payment failure fees. Want to know about all the different types of fees your traditional bank is taking from you? Read here.
  4. Our intelligent payment platform automatically selects the best active payment option from NEFT,RTGS,IMPS and greatly reduces the payment failure rate for the user. This has proven to reduce payment failure rates across all our clients.
  5. We have single handedly revolutionized the process of adding, managing and storing beneficiaries for your accounts payable. Payout links can be sent to your vendors in a single click. This allows them to add their details and it automatically uploaded and synced to your system!


Written By

Nikitha Reddy
Growth VP @ Karbon


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Access rules for Members of Payout
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