How to Choose the Best Accounts Payable Automation Software

Automating accounts payable (AP) is a strategic move that can help organizations minimize errors, streamline workflows, and ensure timely payments. But with so many options on the market, how do you choose the best accounts payable automation software for your needs? 

This blog will walk you through the essential considerations and features to look for in an AP automation solution, helping you make an informed decision that aligns with your business objectives.

Key highlights:

• Accounts payable automation eliminates manual inefficiencies, reduces errors, improves financial visibility, and speeds up invoice processing, allowing finance teams to focus on higher-value tasks
• When considering automation software, look for key features like automated invoice processing, native ERP inclusion, real-time analytics, and mobile approvals. 
• Common obstacles when implementing AP automation include legacy system integration, employee resistance, and upfront costs. Solutions like ExFlow, built for Dynamics 365, simplify deployment and deliver long-term savings.

What Is AP Automation Software?

Accounts payable automation refers to the use of software to streamline and automate the manual tasks involved in processing vendor invoices. Traditionally, AP departments relied heavily on paper invoice processes, which were time-consuming, error-prone, and difficult to scale. With AI-powered automation tools, your organization can now manage your accounts payable processes more efficiently, reducing the need for manual intervention and saving time.

In addition to speeding up the AP workflow, accounts payable invoice automation software​ enhances accuracy by minimizing human errors. This ensures that invoices are processed correctly, reducing the risk of duplicate payments or missed due dates. Moreover, these solutions offer greater visibility into the payment process, allowing your finance team to track invoices from receipt to payment with ease.

Why Use Accounts Payable Invoice Automation Software?

Accounts Payable Invoice Automation Software takes the hassle out of managing invoices by replacing slow, manual processes with fast, streamlined workflows. Instead of chasing down approvals or fixing data entry mistakes, your finance team can focus on more important tasks. It also helps your business stay flexible and ready for growth by integrating smoothly with your existing systems. In short, it isn’t just about saving time — it’s about giving your team the tools they need to work smarter and stay ahead.

Benefits of AP Automation

The advantages of integrating AP automation are manifold. From improving efficiency to ensuring regulatory compliance, the right software can transform your financial processes. 

Here are some of the key benefits of AP automation:

1. Improved Efficiency and Productivity

Automating your AP processes allows for better invoice management, which in turn speeds up the entire payment cycle. The best accounts payable systems not only improve cash flow management but also free up your finance team to focus on more strategic activities.

2. Cost Reduction

AP automation software helps organizations save money by reducing the need for manual labor and minimizing errors. The cost savings can be substantial, with some businesses reporting a reduction in processing costs of up to 80%, according to Goldman Sachs. Additionally, automation enables companies to take advantage of early payment discounts, further enhancing savings.

3. Enhanced Compliance and Security

With built-in compliance features, AP automation software ensures that your organization adheres to financial regulations and internal policies. Automation also enhances security by providing detailed audit trails and ensuring that sensitive financial data is handled securely.

4. Increased Accuracy

By eliminating manual data entry, AP automation significantly reduces the risk of errors. This leads to more accurate financial reporting and fewer discrepancies in your accounts payable records.

Common Challenges of Integrating AP Automation

While the benefits of AP automation are clear, implementing such a solution is not without some challenges. One of the primary obstacles is integrating the new software with existing systems. Many organizations have legacy systems, making AP automation ERP integration difficult. Additionally, there is often resistance to change within organizations, as employees may be reluctant to adopt new technologies or processes.

Key challenges include:

Challenge	Benefit
Integration with existing systems	Many businesses face difficulties in integrating AP automation with their current ERP or accounting systems. Compatibility issues, data migration concerns, and the need for IT support can slow down adoption.
Employee resistance	Some employees may be reluctant to embrace AP automation due to fear of job displacement, unfamiliarity with new technology, or a preference for manual processes. Effective training and change management are essential for success.
High initial investment	While AP automation delivers long-term cost savings, the upfront costs for software, implementation, and training can be a barrier for businesses, especially smaller organizations with limited budgets.

However, despite these challenges, the advantages of using AP automation software far outweigh the drawbacks. Automating your accounts payable processes can lead to substantial cost savings. 

Top Features of Accounts Payable Invoice Automation Software

When evaluating the best accounts payable automation software, it’s important to consider the features that will bring the most value to your organization. Here are some key features to look for:

1. Automated Invoice Processing

The core functionality of any AP automation software is its ability to process invoices automatically. This includes features like Optical Character Recognition (OCR) for data capture, three-way invoice matching, and automatic approval processes. 

2. Integration Capabilities

While integration challenges exist, it’s crucial to choose an AP automation solution that can seamlessly connect with your existing ERP system, such as Microsoft Dynamics 365. This ensures that data flows smoothly between systems, reducing the risk of errors and duplication.

3. Advanced Reporting and Analytics

The ability to generate detailed financial reporting and gain insights into your AP processes is invaluable. Look for software that offers customizable dashboards and analytics tools to help you monitor performance and identify areas for improvement.

4. User-Friendly Interface

An intuitive and user-friendly interface is essential for ensuring that your team can quickly adapt to the new software. The easier the software is to use, the more likely it is that your employees will embrace it.

5. Global Support

Given the complexities of AP processes, having access to global support is crucial. Whether it’s through online resources, training, or 24/7 customer support, make sure the software provider offers comprehensive support options.

Accounts Payable Automation Software Comparison

Here’s a table comparing some of the most popular and well-known accounts payable automation software solutions. The comparison focuses on key features such as native ERP integration, ease of use, OCR technology, customer support, security, reporting tools, and more.

Software	Native ERP Integration	Ease of Use	OCR Technology	Customer Support	Security	Reporting Tools	Unique Features
ExFlow	Yes, built into Microsoft Dynamics 365 F&O and Business Central	High	Advanced OCR for seamless invoice processing	24/7 Global Support	Robust, with granular access controls and audit trails	Power BI dashboards, real-time reporting	Native integration ensures real-time data synchronization across Dynamics 365 ecosystem. Ideal for large, complex organizations.
Coupa	Not natively embedded but integrates with multiple ERPs	Moderate	Solid OCR capabilities, but not as advanced as ExFlow	Limited to business hours	Strong security measures, but lacks native ERP security features	Comprehensive reporting tools, but requires custom setup	Extensive supplier network, good for mid-sized companies.
AvidXchange	No native ERP, integrates with various platforms	Moderate	Standard OCR capabilities	Customer support available, but less robust compared to ExFlow	Industry-standard security measures	Custom reporting available, but not as seamless as ExFlow	Strong focus on payment automation.
Tipalti	No native ERP, integrates with various platforms	Moderate	Strong OCR capabilities, but requires manual setup for new vendors	Good customer support, but limited to certain time zones	Secure, but lacks some advanced features of ExFlow	Detailed reporting, but setup can be complex	Specialized in global mass payments.
SAP Concur	Yes, built into SAP ERP systems	High	High-quality OCR, but dependent on SAP ecosystem	Strong customer support, but can be costly	Enterprise-grade security	Extensive reporting, customizable but requires SAP expertise	Ideal for companies already using SAP.
Kofax	Not natively embedded, integrates with multiple ERPs	Moderate	Advanced OCR, comparable to ExFlow, but setup can be complex	Good support, but primarily during business hours	High security standards	Detailed reporting, requires customization	Focuses on document processing automation.
Basware	No native ERP, integrates with various platforms	Moderate	Solid OCR, but manual intervention is sometimes needed	Support is good, but less global coverage than ExFlow	Secure, but not as integrated with ERP security	Customizable reporting, but requires setup	Best for companies looking for a broad AP automation solution.
Oracle NetSuite	Yes, built into Oracle NetSuite ERP	High	Robust OCR, but within the Oracle ecosystem	Strong support, but tied to Oracle's service model	Enterprise-grade security	Comprehensive, but complex reporting	Ideal for companies fully invested in Oracle products.

Factors to Consider When Choosing The Best AP Automation Software

Selecting the right AP automation software for your finance operations involves more than just comparing features. While functionalities like OCR, invoice matching, and approval workflows are important, there are many other critical factors that determine the software’s long-term effectiveness, scalability, and ROI. It’s important to evaluate how well a solution aligns with your needs beyond the feature list. Here are some key things to consider:

1. Scalability

Choose a solution that can grow with your business. As your organization expands, your AP processes will become more complex, and you’ll need software that can handle increased volume and complexity.

2. Cost vs. Value

While cost is an important factor, it’s essential to consider the overall value when looking for the best accounts payable automation tool. Investing in a higher-priced solution with robust features and support may yield better long-term results than a cheaper, less comprehensive option.

3. Vendor Reputation

When selecting the best app automation solution, research the software provider’s reputation and track record. Look for customer reviews, case studies, and industry awards to gauge the reliability and effectiveness of the solution.

4. Ease of Implementation

Consider the implementation process and how it will impact your operations. Some solutions offer faster, more straightforward deployment than others, which can minimize disruption to your business.

How to Get Started with AP Automation

Implementing AP automation may seem daunting, but with careful planning, the transition can be smooth and successful. Here’s how to get started:

1. Assess Your Current Processes: Begin by evaluating your existing AP processes to identify areas that could benefit from automation. Determine your pain points, such as invoice processing times, error rates, and compliance challenges.
2. Choose the Right Software: Based on the assessment, select an AP automation solution that aligns with your business needs. Consider the factors mentioned earlier, including scalability, integration capabilities, and vendor reputation.
3. Plan for Implementation: Develop a detailed implementation plan that includes timelines, resource allocation, and training requirements. Engage stakeholders across your organization to ensure a smooth transition.
4. Monitor and Optimize: Once the software is in place, continuously monitor its performance and gather feedback from users. Use this data to optimize your AP processes and make any necessary adjustments.

For organizations using Microsoft Dynamics 365, ExFlow offers a robust AP automation solution natively built into the ERP system. This seamless inclusion ensures real-time data synchronization, advanced reporting, and a user-friendly interface, making it an ideal choice for businesses looking to streamline their accounts payable processes.

Automate Your AP Workflows with ExFlow for D365

Selecting the right AP automation software is essential for improving efficiency, reducing costs, and ensuring compliance. ExFlow for Dynamics 365 is purpose-built for D365 Finance & Operations and Business Central, for cohesive end-to-end automation without the need for third-party integrations.

With ExFlow, your AP team eliminates manual invoice processing, mitigates risk, and ensures full regulatory compliance while gaining real-time visibility and control over financial workflows.

Why Businesses Choose ExFlow

If your organization’s goal is to streamline accounts payable, you’ll need a solution that works cohesively with your existing systems, without adding unnecessary complexity. That’s why so many organizations choose ExFlow, a purpose-built AP automation solution designed specifically for Microsoft Dynamics 365 Finance & Operations and Business Central. Since the software is natively embedded, users work directly within the familiar D365 interface, eliminating the need for third-party integrations and reducing IT overhead.

Manual invoice processing can be a time-consuming burden that slows operations and increases the risk of errors. With ExFlow, you can:

• Automate invoice capture, matching, and approvals, freeing up team resources
• Streamline processing by automatically routing invoices based on role, department, or amount

Provide final sign-off on invoices from anywhere with accessible mobile and email approvals. Financial compliance and security are also top priorities. ExFlow’s built-in compliance tools help your business adhere to regulatory requirements, while fraud detection alerts flag duplicate invoices or unusual payment patterns before they become costly mistakes. With real-time dashboards and full audit trails, your finance team gains complete visibility into pending invoices, cash flow, and overall AP performance for greater financial transparency.

With ExFlow, you eliminate manual processing, reduce risk, and gain full control over your AP workflows — all from within Dynamics 365.

Sources:

• G2: User reviews and ratings from industry professionals.
• Microsoft: Information on ExFlow’s native integration and security features.
• SAP: Details on SAP Concur’s capabilities and ERP integration.
• Oracle NetSuite: Overview of Oracle NetSuite’s AP automation capabilities.

A report by APQC found that organizations with fully automated AP processes spend 59% less per invoice compared to those with manual processes.