On its own, technology is rarely a panacea. You also need a good strategy and smart people to get the most from your processes. This is especially true when it comes to managing the finances of a small but growing business.

But, what we can rely on new technologies for is to do some heavy lifting to overhaul the more manual aspects of our financial management. Accounts payable is certainly no exception to this.

From smart data entry tools to cloud-based payment processing, automation is quickly taking over as the gold standard in AP management. Let’s take a look at some of the key features we already have at our fingertips and what’s yet to come.

Automation tools we already have

Here are just a few ways you can already automate your accounts payable and some of the features that help: 

OCR

No more squinting at invoices and manually punching in numbers. Optical character recognition (OCR) software reads a scanned document and extracts all the key information, practically eliminating manual data entry and the countless errors that come with it.

Mobile scanning

In addition to OCR to read documents, many AP solutions let you take a photo of an invoice through a mobile app. This is faster and more flexible than heading to the scanner and is a convenient solution for remote employees too.

Approval workflows

Built into modern AP tools, approval workflows ensure the right person has approved an invoice before payment is made. Traditionally, this would require back-and-forth email chains and in-person conversations, causing unnecessary and frustrating bottlenecks.

Mobile and cloud-based solutions

Any business relying on paper processes today is wasting time and risks getting left behind. Governments will soon be enforcing e-invoicing, so companies will really have no choice but to become digital natives. The sooner you get on board, the better!

Coming soon, to a screen near you

While automation features now sit front and centre in the tech stacks of many SMBs, financial teams and accounting firms, there’s plenty of room for even more innovation in this space.

In the very near future, expect to see and hear much more about:

Artificial intelligence and machine learning

AI is already reshaping the way businesses work, but there’s plenty more to come. From flagging suspicious invoices to creating real-time reports, AI can handle what used to take hours in an instant. Soon, we’ll see even more advanced tools that manage budgets, alert you to unexpected spend increases and optimise your cash conversion cycle.

Instant payments by default

Gone will be the days of waiting for payments to be processed over weekends or holidays. Thanks to systems like the Faster Payments Service in the UK (Instant Payments in the EU), immediate transactions are becoming the new standard. Less waiting, fewer discrepancies and better cash flow management – it’s an all-around win.

e-Invoicing across the board

Slowly but surely, countries are launching their own e-invoicing rules, requiring every invoice transaction to match a certain format and be reported directly to the authorities. While this is mainly to aid in tax collection, it means that companies and their suppliers will have to be digital-first.

Predictive analytics and forecasting

Imagine having a system that not only forecasts your cash flow but also offers actionable advice to improve your working capital. Predictive analytics will soon be a game-changer, giving businesses a proactive edge over their finances.

360-degree working capital services

With automation handling the repetitive stuff, accountants can focus on the bigger picture: guiding businesses toward smarter cash flow strategies and optimising working capital. It’s a shift from being number-crunchers to becoming true financial strategists.

Automate your AP processes, easily

Like what you read but haven’t automated yet? Don’t stress. There are lots of easy-to-use and cost-effective solutions out there to choose from.

In fact, we have one you might just love - Mimo Pay. 

With our smart AP automation solution, you can spend less time and money processing supplier invoices and focus your resources and energies on what matters most - growing your business. 

Find out more about how Mimo Pay can help you streamline your money-out.