Accounting departments seem to be working harder than ever to keep up with an increasing flow of purchasing and payments. Yet it’s a simple fact that these teams could create more value by attending to higher-level tasks instead of spending their time individually processing hundreds or thousands of invoices. 

If your accounts payable (AP) team is drowning in a cumbersome manual invoice cycle, it’s time to upgrade to automated invoicing. By exploring how automation works and understanding its benefits, you can identify the right AP software to streamline workflows, lower costs, and strengthen supplier relationships. 

Download the free tool: Invoice Tracking Template

What is invoice automation software?

Automated invoicing, also known as e-invoicing, is a technology-driven accounts payable process that allows a company to receive and process invoices automatically. An automation solution eliminates manual invoice management, increasing efficiency and reducing errors. It uses digital tools and software programs to produce purchase orders, track shipments, receive and process AP invoices, and schedule payments for completed purchases.

The benefits of invoice automation software

Automated invoicing can enhance accounting and finance teams' efficiency and work experience. Here are some of the ways automation benefits organizations. 

Increased efficiency: Automation accelerates the receipt, reconciliation, processing, and payment of invoices, freeing up time and resources for other important tasks. Since nearly half of CFOs report that burnout and attrition contribute to talent shortages, automation is an accessible way to increase productivity and job satisfaction. 

Improved data accuracy: Automated systems reduce human errors in invoice calculations, ensuring consistent and accurate financial records. AP automation software reduces time spent on corrections and increases confidence in month-end closings and financial reporting.

Better cash flow management: Automating invoice processing and invoice payment improves visibility into cash flow, making it easier to control financial positioning.

Increased cost savings: By minimizing the manual labor necessary to process paper invoices, automated accounting software can lead to significant cost savings. 

Lower operational costs: Integrating an invoice automation solution into business operations streamlines processes for increased operational efficiency. By reducing manual tasks, automation lowers labor costs and frees up time for more strategic business needs. For instance, invoice automation can reduce invoice processing costs up to 67%. This efficiency not only cuts expenses but also enhances productivity and operational agility.

Speedy approvals: Automation software enables a faster invoice approval process using real-time notifications and reminders so requests don’t slip through the cracks. Thanks to customized workflows, each approval automatically follows a sequence that reduces delays and maintains an efficient flow.

Quicker payments: Automated invoices get delivered instantly, speeding up the payment process, shortening the overall processing cycle, and opening the door to early pay discounts.

Enhanced cash flow insights: Automation and data centralization provide a single source of truth for all financial data. This sets the stage for real-time analysis of cash flow, spending trends, and budget performance. Predictive analytics can improve forecasting, investment planning, expense management, and working capital optimization. 

Increased compliance tracking: AP automation solutions aid procurement and finance teams in evaluating contract information against product selections and transactions, helping uphold contract terms and unlock available discounts.

Better spend management: Digitally stored invoices make it easier to find past orders, analyze spending, and audit financial records. Integrated tools enable finance teams and department heads to monitor spend and budget performance, supporting smart, data-driven decisions.

Stronger vendor relationships: Automated systems create an easy, seamless system for paying vendors, resulting in stronger partnerships and more opportunities to take advantage of strategic benefits like volume discounts. When paired with a focused sourcing strategy, automation even increases negotiation leverage.

Want to see the power of invoice automation in action? Check out some AP automation case studies from Order.co customers. 

Tool

Invoice Tracking Template

Download the invoice tracking template to avoid costly mistakes, clarify financial patterns, and track spending throughout the year.

Download the tool

The ROI of invoice automation software

Invoice automation delivers a clear return on investment by lowering costs and improving operational efficiency. By streamlining processes and reducing errors, automation allows AP teams to focus on value-creating activities and revenue-boosting efforts.

An invoice automation platform centralizes transaction and payment data. By pairing invoice automation features with a procurement platform, users can use this data to support strategic decision-making and more accurate budgeting. Automation also promotes timely and accurate payments that help secure better terms and discounts, aiding organizations in building cost-saving partnerships based on trust and mutual benefit.

5 Best invoice automation tools for accounting teams

Looking for a procurement tool that streamlines the purchase and invoice automation process? Here are five options worth considering: 

1. Order.co

Order.co is the first procurement platform that empowers users to buy supplies, substitute out-of-stock items, and forward orders for approval, processing, and payment. It incorporates automation for invoice processing, multi-department approvals, payment processing, reporting, and more. 

Pros

• Features next-generation automation from the point of purchase to settlement, including:
  • Invoice capture and centralization
  • Purchase order and invoice approvals
  • Three-way matching and reconciliation
  • Invoice payments with variable net terms
  • GL coding and reporting
• Enables invoice consolidation, allowing managers to pay multiple invoices across vendors with a single payment
• The only tool that offers virtual procurement cards, universal net terms, and financing of up to $500K

Cons

• Doesn't use OCR (optical character recognition) since transactions happen within the platform 
• Can't be used to purchase software or services, but offers a virtual P-card feature so users can pay for these purchases and capture spend automatically

2. Glantus (formerly Basware)

Glantus offers full AI and machine learning (ML)-enhanced AP automation to eliminate manual processes and accounting slowdowns. The system boasts AI-powered SmartPDF capture technology to prevent data-quality issues from OCR. It also offers automation for non-PO invoices for faster processing and data capture.

Pros

• Features easy-to-understand dashboards that help casual users understand data 
• Offers fast and accurate GL coding for speedy invoice handling
• UI is easy to learn and supported by helpful customer service teams 

Cons

• Reporting tools lack customization and sometimes leave out important details
• Rejected or returned invoices require manual workflow removal by a Basware admin
• Permissions are sometimes restrictive, limiting users' ability to search for vendors

3. Airbase

Airbase spend management solutions enable AP automation for invoice processing and other automated AP workflows. The platform uses OCR and AI technology to capture and verify data while offering payment integration for automatic invoice payment after approval.

Pros

• Strong customer service support for handling onboarding and user issues
• Simple UI with effective processes 
• Integrations let users tie together information systems to reduce redundancy

Cons

• Some reconciliation tools for handling prepaid accounts and amortization expenses are missing 
• Many users report issues with the Airbase app and trying to log in from a mobile device using SSO (single sign-on)

4. Procurify

Procurify is a spend management platform that provides real-time visibility into organizational spend. It uses cloud-based functionality to help finance teams manage procurement and expenses from anywhere. It offers features for supplier performance management, AP automation, invoice processing, and integrations with other key systems.

Pros

• Offers extensive training materials and resources through its Procurify Academy knowledge base
• Uses algorithms and AI enhancements to ensure data accuracy and error detection

Cons

• Onboarding time is extensive; a 4- to 6-week timeline for lighter implementation and up to 12 weeks for NetSuite integration 
• Doesn't directly facilitate procurement; order processing requires integration through the platform’s PunchOuts add-on, but the system is not vendor-agnostic
• UI is sometimes difficult to navigate, such as when looking for historical PO data

5. Stampli

Stampli is accounts payable automation software designed to streamline and simplify accounting workflows. It features a user-friendly interface that integrates seamlessly with most existing enterprise resource planning (ERP) systems, helping organizations maintain their current workflows while improving efficiency. Billy the Bot, Stampli’s AI and machine learning technology, learns the organization’s current AP processes for invoice capture, coding, and approvals.

Pros

• Competitively priced for the features provided
• User-friendly design makes it easy for new operators to get up to speed
• Provides AI/OCR-powered invoice capture with some GL coding options

Cons

• Difficult to filter out duplicate invoices, which leads to confusion and potential inaccuracies in spend data
• Several users report the platform is prone to lagging and crashes

Tool

Invoice Tracking Template

Download the invoice tracking template to avoid costly mistakes, clarify financial patterns, and track spending throughout the year.

Download

"*" indicates required fields

First Name*

Last Name*

Company*

Email*

Phone

Phone

This field is for validation purposes and should be left unchanged.

How to get started with invoice automation

New to automation? Here's how to get your invoice automation workflows started.

Choose which tasks to automate first

End-to-end invoice processing automation makes sense for most organizations. It allows teams to focus on higher-level tasks instead of completing repetitive activities for an ever-increasing flow of invoices. 

Invoice receipt: Automation centralizes invoices from various sources, such as email, fax, or mail, into one location for easy access and processing.

Data capture: Automated systems extract and interpret data from received invoices, including vendor details, invoice numbers, dates, line item details, and totals. Some systems also support real-time data reviews for better visibility and trend analysis.

Invoice validation and matching: Automation checks invoice data against purchase orders, invoices, deliveries, or contracts to catch discrepancies and ensure accurate invoice reconciliation.

Approval routing: Automation uses predefined rules to route each invoice to the appropriate approver, reducing delays and streamlining the overall process.

Exception handling: If discrepancies arise, automation alerts relevant stakeholders and routes invoices for resolution.

Payment processing: Once approved, automation facilitates seamless payment processing. It can even schedule payments to take advantage of early payment discounts or prevent late payment fees.

Spend analysis and reporting: Automation stores invoice data for audit trails, forecasting, and budgeting. It can also generate reports that help organizations analyze spending patterns and improve financial strategies.

Train and roll out with a pilot group

A thoughtful change management approach makes adopting invoice automation easier for everyone. While intuitive tools make this process faster and more efficient, training ensures users feel confident submitting orders, routing approvals, processing invoices, and initiating payments. 

Identify stakeholders: Start by identifying key stakeholders, including those using the software directly and those needing to access the tool for information and reporting purposes. Loop in IT and security partners to ensure the best outcome.

Communicate the change: Clearly communicate why the switch is happening, how it affects each role, and the benefits it brings. Focus on changes that will have a tangible impact on work satisfaction and productivity.

Implement a training plan: Offer a mix of group sessions and self-paced resources tailored to users' roles. Ensure everyone understands both basic functions and advanced features, and provide access to a knowledgeable contact for questions.

Conduct training sessions: Involve participants in hands-on training to spur adoption. This lets users learn by doing and makes training more engaging. 

Provide support materials: Reinforce training with quick-reference guides, videos, or interactive walk-throughs. Leverage vendor-provided materials to make onboarding easier. 

How to choose the best invoice automation software 

The key to choosing the right invoice automation and spend management tool is finding the option that offers the best features and capabilities alongside an easy-to-use interface. Careful selection can help businesses overcome common AP automation challenges that slow down progress and sap ROI.

Integration needs: Aim for an automation and spend management tool that integrates effectively with existing financial systems to enhance pre-accounting processes and workflows. Explore whether your potential tool can provide seamless data transfer, sync data across systems, and integrate into your larger suite of business systems.

Real-time analysis: Look for a tool with robust analysis features that enable real-time review of current invoices, departmental spend, and budget performance to support better decision-making.

Vendor management: Seek out a spend management tool that offers an easy and seamless experience for selecting goods, substituting out-of-stock items, paying vendors, and unlocking discounts.

Customization and ease of use: Choose a software solution that's flexible enough to adapt to your invoicing process, business model, supplier list, and logistics requirements. Look for an option with an intuitive interface and a functional design that encourages adoption.

Security features: Prioritize systems with secure vendor connections, encrypted transactions, and role-based user permissions. This is especially important for AI-powered platforms that use data to improve data modeling. Opt for a closed, proprietary model with stringent safety protocols.

Comprehensive reporting: Look for an invoice automation tool that generates detailed reports to provide deep insights into your company's spending habits.

Scalability and support: Select a tool that can accommodate the organization's volume fluctuations over time. Assess how your selection provider supports implementation, onboarding, and ongoing user support. Find a tool that handles issues by uniting a robust platform with the human touch.

Why accounting teams choose Order.co

The procure-to-pay features in Order.co allow users to buy what they need within a guided procurement experience, automating the AP process from purchase order to payment. By automating invoicing, approval workflows, GL coding, and three-way matching while consolidating payment options, Order.co helps users purchase items, pay invoices, capture spend data, and achieve total spend visibility automatically. 

Need a way to track and manage the invoice process? See how Order.co can help you automate and centralize invoice processing and speed up every aspect of the invoice and payment process. Schedule a demo of Order.co.

Frequently asked questions

Is there a way to automate invoices?

Yes. A fully-featured procurement tool also automates the invoicing process using flexible workflows and integration with your procurement stack. The right platform can automate each step of procurement and invoice processing, centralizing vendor invoices, routing them based on preset workflows, matching invoices to delivery receipts and purchase orders, paying approved invoices, and accurately reporting transactions in the general ledger (GL). Invoice automation ensures accuracy and eliminates the time-consuming aspects of manual data entry and verification.

Which software is best for invoicing? 

Several top-performing tools offer invoice automation, though their features and scalability vary. The best options deliver the functionality you need without cobbling together microservices to complete the end-to-end process.

Order.co offers provides everything to automate the invoice process, including:

• Integration with accounting systems
• Real-time tracking of invoice status
• Customizable approval and processing workflows
• Automatic matching of invoices to purchase orders and receipts
• Automated GL coding for line-level accuracy
• Analytics for financial insights and reporting
• Payment automation for on-time vendor payment

Is AP automation worth it?

Absolutely. Accounts payable automation streamlines operations by eliminating hours of tedious manual work, which reduces errors and improves efficiency. It also gives teams the bandwidth to tackle more strategic work, delivering a speedy ROI and many quality-of-life benefits.

Get started

Schedule a demo to see how Order.co can simplify buying for your business

"*" indicates required fields

First Name*

Last Name*

Company*

Email*

Phone*

Email

This field is for validation purposes and should be left unchanged.