AP Automation

AP (Accounts Payable) automation refers to the use of technology to streamline and automate the process of managing and paying invoices. It digitalizes tasks like invoice capture, matching, approval and payments, reducing the need for manual intervention.

To learn more about this topic and why accounts payable invoice automation has become such a vital finance innovation, read our blog article: What is AP automation?  

AP automation reduces processing time, lowers costs, minimizes errors and improves visibility into payments. It helps businesses make timely payments, strengthens vendor relationships and frees up payable teams to focus on more strategic tasks.

Return on investment (ROI) from implementing an AP automation solution often comes through reduced manual processing costs, fewer errors, early payment discounts and improved cash flow management.

While ROI on an AP automation will be unique according to the nature of the organization and the scope of automations implemented, the Ardent Partners' AP Metrics that Matter report (2024) provides helpful benchmarks:

• Cost to process a single invoice: Best-in-class AP departments can process a single invoice at a cost of $2.78, whereas other organizations spend $12.88 per invoice on average.

• Time to process a single invoice: Top-performing AP departments process invoices in 3.1 days, while the average for all others is significantly longer, taking 17.4 days.

• Invoice exception rate: The best-in-class maintain a lower invoice exception rate of 9.0%, compared to 22.0% for other organizations. 

• Staff time spent managing supplier inquiries: Staff working in best-in-class AP departments spend 13.4% of their time responding to supplier inquiries, compared to 26.9% elsewhere.

Thanks to our open architecture, Pagero integrates with all ERP systems, invoice processing tools, tax solution and other systems. Explore our system connectivity page to learn more. 

AP automation provides real-time visibility into outstanding invoices and payment schedules, enabling better cash flow forecasting. It helps businesses avoid late payment penalties and optimize cash reserves by timing payments strategically.

With Pagero, our comprehensive Analytics Dashboard enables you to analyze corporate spend across all of your connected subsidiaries. Zoom out to trends on a group level, or in to examine line-level purchases. 

Yes. Pagero’s solution is scalable and can be tailored to fit businesses of all sizes, from small enterprises to large multinational corporations. The flexibility of our solutions mean easy adaption to different industries and workflows. 

Pagero’s AP automation solution uses advanced encryption, secure data storage and compliance with global data protection regulations to provide the highest level of security. 

AP automation digitalizes and automates the entire invoicing process, including the capture, validation and approval of invoices. The use of electronic invoicing is a core component (as opposed to traditional PDF or paper-based invoicing), streamlining workflows to support faster approvals and payment cycles.

Pagero offers comprehensive support, including onboarding assistance, integration support and continuous customer service. We also provide resources like training, documentation and quick access to a dedicated support team.

Automated AP systems cross-check invoice details with purchase orders, delivery confirmations and contract terms, detecting mismatches that may signal fraudulent activity. This ensures only authorized payments are processed.

Our AP automation solution helps with compliance by automatically validating invoice data against local tax regulations and e-invoicing requirements, reducing errors and ensuring adherence to legal standards. Our solution also creates detailed audit trails for every transaction, making it easier to provide records during audits. Additionally, we are constantly updating our internal format when regulatory changes happen, ensuring ongoing compliance without manual intervention.