Accounts Payable Automation Made Easy

What is Accounts Payable Automation​

Accounts payable is the part of your business that takes care of paying bills to vendors and suppliers. It tracks invoices, gets approvals, and makes sure payments go out on time. Now, imagine doing all that by hand — entering invoice data, checking amounts, and chasing down approvals. That’s where AP automation comes in. It replaces those manual steps with software that does the work for you. So instead of typing data, the system can read the invoice and sort it automatically.

It can even send reminders, match invoices to purchase orders, and schedule payments. With AP automation, your team spends less time on busy work and more time on what matters. And here’s a fun fact — companies using accounts payable automation can cut their invoice processing time by over 60%. Still wondering if it’s only for big companies? It’s not. Small businesses use it too because it helps them stay organized and save money.

How to Automate Accounts Payable

So, how do you actually start the AP automation process?

First, you need to understand your current process. Where do invoices come from? Who approves them? What causes delays?

Once you map that out, you can spot what to automate.

The AP automation process usually works in these steps:

• Invoice arrives — by email, mail, or uploaded by a vendor
• Software reads and captures the invoice data
• It checks the invoice against a purchase order or contract
• It sends it for approval automatically
• Once approved, the payment is scheduled

You can also set rules — for example, invoices under $500 might skip approval and go straight to payment.

Many tools also let vendors upload their own invoices through a portal. That way, your team doesn’t even have to touch it. Some companies start small by automating only one step, like data entry. Others go full-in with everything. No matter how you start, AP automation helps reduce errors, avoid late fees, and cut down on paperwork. Want to get started? Choose a tool that works well with your accounting software and fits your budget.

AP Automation Benefits

There are many accounts payable automation benefits that help businesses save time, reduce stress, and improve control. Here are some of the main ones:

• Faster invoice processing — no more manual data entry or chasing approvals
• Fewer errors — automation reduces mistakes like duplicate payments or wrong amounts
• Better cash flow visibility — know what’s due, what’s paid, and what’s pending at a glance
• Lower costs — save money by avoiding late fees and using early payment discounts
• Less paperwork — digital records make audits and reporting much easier

These benefits make accounts payable automation a smart move for both small and large companies.

NetSuite Accounts Payable Automation

If you already use NetSuite, good news — it has powerful tools for automating your payables. NetSuite accounts payable automation helps businesses handle bills faster, with fewer mistakes and less manual work.

So, what exactly can it do? Let’s break it down.

NetSuite AP automation allows you to:

• Capture invoice data automatically — using OCR (optical character recognition), it reads invoices for you
• Match invoices to purchase orders — no need to check them line by line
• Set up approval workflows — invoices go to the right person at the right time
• Schedule and send payments digitally — no more writing checks or logging into bank portals
• Track everything in real time — get full visibility into your payables from one dashboard

Let’s say your company receives 200 invoices each month. With netsuite ap automation, instead of having two people manually enter and approve them, the system can handle most of that on its own — saving hours every week.

Another great thing is how well NetSuite accounts payable automation connects with other parts of your system. It links your payables to your general ledger, vendor records, and cash flow reports.

The Role of AI in Accounts Payable Automation

You’ve probably heard a lot about AI lately. But what does AI in accounts payable really mean?

AI, or artificial intelligence, helps software think and learn — like recognizing patterns, flagging errors, or predicting what to do next. When used in accounts payable, AI makes the whole process even smarter.

For example, with robotic process automation accounts payable systems can:

• Scan and read invoices automatically, even if the format is new
• Spot mistakes — like duplicate charges or missing info
• Predict approval routing based on past behavior
• Alert you to unusual activity that could mean fraud

Think of it as a digital assistant that works 24/7, never gets tired, and keeps learning over time.

There’s also a growing number of companies seeing big results with AI. One accounts payable automation case study showed how a mid-size tech company cut its invoice processing time by 70% using AI tools. They also reduced errors by more than half — just by letting the system handle routine tasks.

AI in accounting isn’t science fiction anymore — it’s here and working in real businesses right now. And the best part? You don’t need to be a tech expert to use it.

Accounts Payable Automation Best Practices

Getting started with automation is great, but using it the right way makes all the difference. Here are some simple AP automation best practices that can help your business get the most out of it.

• Standardize your invoice process — use the same steps for every invoice to avoid confusion
• Set clear approval rules — know who needs to approve what, and when
• Use digital records only — say goodbye to paper and make everything searchable
• Monitor key metrics — track things like processing time, payment errors, and late fees
• Train your team — even the best tools only work well if people know how to use them

If your team is stretched too thin, consider Outsourcing Accounting Function. This means letting experts handle the entire process for you — from invoice capture to final payment. Many companies outsource AP to save time and avoid hiring more staff.

At Hundred MS, we guide businesses through Accounts Payable Automation Best Practices and offer help with setting up, managing, or even fully outsourcing your AP process.

We also support multiple accounting systems — not just NetSuite. We work with Sage Accounting and QuickBooks as well, giving you flexible options based on your setup.

By the way, if you want to go deeper into this topic, we discussed both Accounts Payable Best Practices and Accounts Payable Outsourcing in our previous post. Feel free to check that out too.

Conclusion

Accounts payable automation is no longer just a nice-to-have. It’s a smart way to save time, reduce errors, and keep your business running smoothly. Whether you’re a small business or a growing company, automation helps you stay on top of payments without the stress of doing it all by hand.

From faster approvals to better cash flow control, the benefits are real — and tools like NetSuite, Sage Accounting, and QuickBooks make it easier than ever to get started. If you’re ready to improve how your business handles bills, now is the time to explore accounts payable automation.