10 questions to ask when evaluating accounts payable solutions

If you're already convinced that accounts payable automation is a win for your business, awesome! You're all set to explore the various available AP automation solutions. As you figure out what fits your needs best, it’s smart to check out online demos, arrange product demonstrations, and build a solid business case to get your team on board. To help make your decision process easier, here are ten key questions to ask as you explore various options.

1. Is your AP automation solution truly AI-driven?

Traditional accounts payable (AP) solutions often depend on inflexible template-based systems, usually leading to errors and manual intervention. In contrast, AI-driven AP solutions do so much more. For example, look at invoice capture. Template-driven solutions can spot data anomalies and gaps, but they lack the ability to understand what's wrong with the data and how to fix it. AI-driven invoice capture technology quickly learns and interprets diverse invoice formats, significantly enhancing accuracy and efficiency while making manual data entry nearly obsolete. When evaluating AP automation solutions, be sure to ask how they leverage AI in their solution and arm yourself with knowledge.

2. Do you leverage machine learning for invoice processing?

Look for solutions that use machine learning (ML) to automate invoice workflows. Unlike systems that rely mostly on static rules or robotic process automation (RPA) for document management, ML-driven solutions can adapt over time, reducing manual intervention and learning from historical data to enhance efficiency. How does the software improve its processing over time, and does it reduce the need for human oversight? Take a look at some of the key components of AI invoice processing.

3. How do you use AP automation to detect and mitigate fraud?

Fraud prevention should be a top concern for any Accounts Payable (AP) solution because it impacts an organization's financial integrity. It’s crucial to assess whether a platform includes features such as real-time risk monitoring, anomaly detection, or fraud scoring to address potential threats proactively. Modern AP solutions should not only provide intelligent fraud and risk detection features but also use advanced analytics to analyze transaction patterns. Ask if the software analyzes historical data and behavioral trends and can effectively flag unusual activities and identify potential issues before they escalate into significant problems.

4. How can your AP automation save my business money?

Cost savings are a big perk of AP automation, but knowing how exactly a solution can help you cut expenses is crucial. Does the software lower processing costs by reducing manual data entry and human error? Can it help you avoid late payment penalties and take advantage of early payment discounts? It's also essential to factor in the initial investment, ongoing maintenance, operational costs, and the total cost of ownership in AP automation. There are plenty of ways to drive down costs, like better vendor management, more accurate reporting, and optimized cash flow. While focusing on short-term savings is good, don't forget the long-term strategic benefits and ROI. Digging into the details and getting a clear understanding from your providers will help you make better decisions.

5. Can you automate all aspects of the invoice-to-pay process?

It’s important to understand whether the software can handle the entire AP workflow from invoice capture to payment or if it only covers part of the process. An ideal solution should offer a suite of tools that automate everything, including approvals, matching invoices to purchase orders and payment processing. This helps ensure a seamless experience and minimizes the need for multiple platforms or integrations.

A touchless process is what you should be reaching to achieve. Ask how they can help you find your touchless AP levels and how to get closer to a 90% touchless rate. Dig deeper into touchless accounts payable and be ready to explore where you stand.

6. Is the AP automation system scalable?

As your business grows, you'll see an increase in the number of invoices you handle. Can your AP solution keep up with your organization’s needs? Ask about its ability to manage high transaction volumes and whether it can easily adjust to changes in your operations, like expanding into new markets or bringing on more vendors. Industries like manufacturing often also see complex and varying types of invoices. So, if you fall into this category, you should check if the solution can manage these complexities. Ensure your solution can meet existing and emerging e-invoicing mandates and compliance requirements.

7. How do you integrate with ERP systems?

Let’s not forget about one of the most common questions — how do you integrate with existing enterprise resource planning (ERP) systems? Smart software solutions come with managed ERP integrations, meaning they are purpose-built to integrate seamlessly with major ERPs like SAP, Oracle, or Microsoft Dynamics. This avoids costly custom development and ensures data flows smoothly between systems. There’s a lot to unpack with ERP and other integrations, so ensure you speak to experts and consult with some colleagues and existing clients to get all the answers you need.

8. Is there a suite approach to your solution?

AP automation works best when it’s part of a broader set of financial management tools that take a holistic approach to handling financial operations. Think platform for spend management. When looking at software options, think about how well it meshes with other financial processes like procurement, contract management, or payment services. A suite approach not only simplifies these connected functions but also makes sure that all financial operations are in sync and using the same data.

This alignment really cuts down on errors or bottlenecks, leading to smoother workflows and better efficiency throughout the organization. Plus, bringing these tools together can provide greater visibility and control over financial activities, helping with informed decision-making and smarter strategic planning.

9. How are payments handled?

Some AP solutions come with built-in payment processing, letting businesses pay vendors directly through the platform. Others might need to connect with third-party payment services. An integrated payment solution makes everything smoother by centralizing payment workflows, cutting down on manual tasks, and giving better visibility into cash flow.

When looking at AP solutions, it's important to check if the software supports various payment methods like ACH, wire transfers, checks, and virtual cards. Plus, does it handle multi-currency payments for international transactions? Great solutions also include vendor management tools that make it easier to onboard suppliers, manage payment preferences, and ensure timely payments—all from one place.

10. What support and training do you provide?

Even the most user-friendly software still needs a bit of training and support. Does the vendor provide solid onboarding, training resources, and dedicated customer support? This is super important if you're new to AP automation, as having dependable support can really help smooth out the transition and make sure your team gets the most out of the software. Inquire whether their support is outsourced, provided by a third party, or managed entirely in-house. Ensure the solution providers you talk to walk through all support elements – including response times, customer satisfaction rates, online and human resources, and more.

There are undoubtedly more questions you’ll have for each provider you talk to, but hopefully these 10 questions give you a solid foundation of what’s really important to know! Accounts payable automation is truly a game-changer in so many ways. Choosing the right partner to embark on this journey with is crucial, so make sure to do your due diligence and ask the right questions before making a decision.