8 best practices for modernizing your AP invoice process today

Introduction 

Finance and accounts payable (AP) team leaders are always looking for ways to improve efficiency, lower costs and deliver more value to their organizations. It takes a combination of strategy, vision and the right tools for the job. Here are 8 best practices to help you modernize your AP invoice processing operations today.

Automate AP invoice processes? How does it work?

Before we explore the 8 best practices in detail, let’s talk about AP automation and what it means. AP invoice automation includes different methods, tools and approaches that you can use to streamline the way your team handles AP invoices. 

AP automation software like Cevinio lets you automate every step of your AP invoice processing. This means:  

• Capturing all relevant information from your invoices regardless of the format and channel, without the need for templates 
• Splitting of paper invoices without barcodes, stickers or separating pages 
• AI-powered coding non-PO invoices to a GL account, cost center, tax code, project code, VAT code or any other predefined text 
• Matching of PO invoices 
• Ensuring compliance with payment terms and legal requirements on the local and global level, including new e-invoicing regulations 
• Automatically routing invoices to the correct approver and keeping the approval process moving 
• Efficient and seamless handling complex scenarios 
• Flagging exceptions or suspicious invoices so they can be reviewed by the right person to prevent payment errors, delays or fraud 
• Entering AP invoice data automatically into your company’s ERP (or multiple ERPs) 
• Providing a convenient online portal where suppliers can easily track their own invoices 

This technology is essential to applying most of the best practices we cover below. It’s the backbone to any modern AP process. When you embrace AP automation and AI, you enjoy key benefits, including:  

• Improved efficiency: Processing invoices faster and more accurately 
• Lower costs: Avoiding penalties and fines associated with late payments or compliance-related issues 
• Higher employee engagement: Making life easier for your AP team by eliminating tedious, repetitive manual tasks 
• More value added: Freeing up yourself and your AP team to devote more time to strategic tasks, like data analysis and strengthening supplier relations 

If you haven’t started automating your AP process yet, you can still benefit from many of the best practices below. Just remember that automation puts you on a much faster path to success.  

Best practice #1. Harness the power of artificial intelligence (AI) and robotic process automation (RPA) 

AI and RPA are two of the hottest topics on the minds of AP leaders right now. These technologies include machine learning and natural language processing. They allow you to process invoices much faster and cost-effectively by automating manual tasks and improving data accuracy and quality, from data validation to intelligent invoice coding and automated routing. 

To get the most out of AI technology, start by reviewing your current processes. Where do your team members currently spend most of their time and energy? Look for AI-powered AP solutions that can take some or all of these tasks. This will help you overcome many common challenges, such as lengthy approval cycles and time-consuming exception handling, or eliminate unpopular tasks like manual data entry. 

Best practice #2. Embrace vendor relationship management (VRM) with self-service portals 

As AI frees up AP teams to serve a more strategic role in their organizations, many are embracing a “vendor experience” or “vendor relationship management” (VRM) mindset. 

Strong vendor relationships are crucial for efficient AP management. Implementing self-service portals empowers vendors to track invoice statuses. This improves communication and creates a transparent business environment, which strengthens your organization’s supplier relations.  

By streamlining vendor onboarding, performance management and risk mitigation, you strengthen partnerships and drive operational excellence in your AP process. 

Best practice #3. Transition to e-invoicing sooner rather than later 

E-invoicing is already required for suppliers in dozens of countries around the world. As more governments mandate electronic invoicing, now is the time to transition to modern AP automation that supports e-invoices to ensure compliance and efficiency.  

Then it is time to start identifying which electronic invoicing regulations apply to you and your suppliers now and in the near to medium-term future. Choose technology solutions that guarantee ongoing compliance with those regulations and the ones to come. To avoid penalties, among other issues, it’s best to be fully prepared for upcoming e-invoicing mandates in your markets rather than caught off-guard when new rules take effect.

Best practice #4. Leverage data-driven insights for continuous improvement

Data analytics is a valuable tool for optimizing AP processes. When combined with other technologies, it can identify areas for improvement and contribute to better forecasting and AP team management. This helps you drive continuous improvement and enhance efficiency.  

Tools like Cevinio Analytics help you optimize every step of your AP flows. By analyzing historical performance data, you can actively identify better ways to manage your activities. 

Best practice #5. Seamlessly integrate AP systems into your ERP (or multiple ERPs) 

When choosing the best AP invoice processing software for your needs, seamless integration with your ERP system is a must. The same applies if your organization uses multiple ERPs: your AP software needs to connect and share data with them flawlessly. This is true whether you’re transitioning to a new ERP or managing multiple ERPs across locations.  

By integrating your chosen AP solution with your ERP systems, you can work faster and more efficiently by reducing redundancy. You also avoid errors by eliminating the need to manually input data in multiple systems or having to update information in different systems.

Best practice #6. Empower your AP team with training and upskilling

As AP processes evolve with technology, investing in training and upskilling your team is crucial for success. By empowering your team with the skills and knowledge needed to leverage new technologies effectively, you can drive efficiency gains and position your organization for long-term success.

The best approach is to support a culture of continuous learning and professional growth. This ensures that your AP team remains agile and explores new ways of adding value to your organization.

Best practice #7. Integrate sustainability and ESG considerations into AP processes 

Organizations in every industry are increasingly embracing strategies to boost their environmental, social and governance (ESG) profiles. By integrating sustainability into your AP processes, you can contribute to a more sustainable future while also enhancing your brand’s reputation and competitiveness. 

Sustainability in AP can take many forms. Moving to digital and automated processes saves resources and reduces waste, which helps lower your organization’s carbon footprint. It also contributes to a better work-life balance for your employees by making their workdays more enjoyable.

Best practice #8. Optimize resources with automation and cost reduction strategies

Automation is the new standard for excellence in AP operations. By automating routine tasks and optimizing resources, you save money and improve scalability.  

AP automation reduces processing costs per invoice while also enhancing supplier relationships and boosting overall efficiency. By embracing automation, you lay the groundwork for all the other best practices we’ve covered in this article. 

Ready to modernize your AP process? 

Modernizing your AP invoice processing is an essential step towards boosting efficiency, reducing costs and adding more value to your organization. By embracing best practices like the ones described above, you ensure your AP team plays a more strategic role in shaping your organization’s future. If you’re ready to tap into your AP team’s full potential, start implementing these best practices today.

Not sure where to start? Cevinio’s team of experts has the answers. We’d be delighted to schedule a call with you to discuss the possibilities. We invite you to contact us or book a free introductory meeting today!