Loading…Next-Gen Payments Automation

When it comes to closing your books, AP automation is a game changer. Traditional AP involves time-consuming manual tasks like data entry, invoice matching, and chasing down approvals. 

AP automation solutions streamline these manual processes by automatically capturing invoice data, routing approvals, and reconciling payments, which drastically reduces the time spent on these activities.

When a business has real-time visibility into its financial data, it’s easier to ensure everything is accurate when it’s time to close the books. This reduces the risk of errors and discrepancies (like duplicate payments) for the AP department, and can further accelerate the closing process.

Additionally, the best AP automation software integrates seamlessly with your accounting tools, ensuring all transactions are automatically recorded and reconciled, leading to a more efficient and faster close. In essence, accounts payable automation software will free up your team to focus on more strategic financial tasks.

To reap the benefits of AP automation, look for a solution with the following features:

Automated Approval Workflows
In fast-paced tech environments, efficient approval processes are critical. Look for cloud-based software that enables customised approval workflows based on specific needs. The system should also offer options for multi-level approvals, notifications, and escalation paths to ensure timely processing.

Flexibility and Scalability
The majority of tech companies start as small businesses and at some point, experience rapid growth. So it’s crucial to choose a tool that finance teams can scale with your business. The platform should be able to handle increasing transaction volumes, support multi-entity operations, and adapt to evolving business processes.

Advanced Reporting and Analytics
Tech companies must heavily rely on data-driven decisions. Choose a platform that offers robust features for reporting, providing real-time insights into spending patterns, cash flow, and supplier performance. Customisable dashboards and detailed reports can also help you optimise financial operations and make more informed decisions.

Seamless Integrations
Tech companies use a variety of systems, from enterprise resource planning (ERP) tools to project management software. The solution you choose should seamlessly integrate with your existing tech stack, including popular brands like QuickBooks, Xero, and Netsuite to ensure a smoother flow of data.

Global Payment Capabilities
Many tech companies operate globally, so it’s important to have payable automation solutions that support multi-currency transactions, global payments, and compliance with international tax regulations. Features like currency conversion, global vendor management, and compliance automation are vital.

Additional Features

• Security measures to protect sensitive data and comply with industry regulations
• Vendor management and a self-service portal to track payments and update supplier invoice data
• Automated PO-matching (2 and 3-way) and reconciliation features
• Comprehensive audit trails and document management capabilities
• User-friendly interface with mobile access for on-the-go approvals

Tipalti offers several integration options to ensure the accounts payable automation system works seamlessly with your existing tools.

Here’s how:

• API integration: Tipalti provides a robust API that enables custom integrations with your performance tracking system. 
• Pre-built connectors: pre-built connectors for popular accounting and ERP systems like QuickBooks, NetSuite, and SAP.  
• Data export and import: use  CSV or Excel to transfer data between Tipalti and your tracking system. This is often used for periodic data synchronisation or bulk updates.

Tipalti has a certified API integration for NetSuite, Sage Intacct, Microsoft Dynamics 365 Business Central, QuickBooks Online, Xero, and Acumatica.

Tipalti’s AP automation software supports invoice approval workflows by providing a customisable, automated AP process that streamlines the entire lifecycle of invoice management. 

Here’s how it works:

Customisable Approval Workflows
Using Tipaltil, businesses can create customised approval workflows that match specific operational needs. Rules can be defined based on invoice amounts, vendor type, department, or any other criteria. For example, smaller invoices might require a single approval, while larger ones will need multiple layers from different departments.

A company can also assign role-based approvals. This ensures the right individuals are responsible for reviewing and approving invoices according to their level of authority and expertise.

Automated Invoice Routing
Tipalti automatically routes invoices to the right parties based on predefined rules. This touchless process eliminates the need for manual routing by AP teams and reduces the risk of bottlenecks in the approval process.

Tipalti also supports both sequential and parallel approval workflows. Sequential approval moves the invoice from one approver to the next in a defined order, while parallel approval allows multiple approvers to review the invoice simultaneously, speeding up the process.

Mobile and Remote Approvals
Approvers can review and approve invoices from any mobile device, including smartphones and tablets. This flexibility enables more remote work and ensures that approvals can be handled promptly, even when people are out of the office.

Real-Time Notifications and Reminders
Tipalti sends real-time notifications to approvers when an invoice requires their attention. If an approver delays the action, the system will send automated reminders, ensuring that invoices are processed promptly. 

The automation tool can also help you set approval deadlines to ensure invoices are approved within a certain timeframe. This helps maintain cash flow, leads to early payment discounts, and helps you avoid late penalties for past due vendor payments.

Integration with ERP and Accounting Systems
Since Tipalti was built to automate accounts payable, it also includes integration. In the system, approved invoices are automatically synced with your ERP or accounting system, ensuring more accurate financial records in real time. This streamlines the payment process and digitises month-end close activities.

The system can automatically match approved invoices with purchase orders and receipts. Matching vendor invoices further reduces manual data entry and ensures that only verified invoices are paid.

Scalability for Growth
Tipalti’s end-to-end approval workflows will scale with your business, accommodating more complex approval hierarchies and larger invoice volumes as your company grows.

For multinational organisations, Tipalti is a software solution that supports multi-entity approval workflows, allowing for consistent and compliant invoice automation across different regions.

Yes, payment automation will significantly improve your revenue recognition workflow. Here’s how:

Optimised Reconciliation
Automated payment systems streamline the reconciliation process by matching payments to invoices, contracts, or subscription services automatically. This reduces manual effort and human errors, ensuring that recognised revenue aligns with actual cash flow. Faster reconciliation directly supports more efficient and accurate revenue recognition.

Accurate and Timely Data
Payment automation systems automatically capture and record transaction data in real-time using a myriad of tools from artificial intelligence to machine learning. This ensures that all payments (including partial payments and payment schedules), are accurately reflected in your financial systems. 

Having precise and up-to-date payment metrics is critical for recognising revenue at the correct time and forecasting future processing times.

Improved Cash Flow Management
With payment automation, businesses can track when payments are received and when revenue should be recognised. This in-depth visibility into cash flow will align revenue recognition with cash collections, improving the accuracy of financial statements and supporting better decision-making.

Enhanced Reporting and Compliance
Payment automation can help ensure that your revenue recognition processes comply with regulatory requirements. Automated systems can enforce consistent application of revenue recognition rules, generate audit trails, and provide detailed reports. This reduces the risk of non-compliance and supports accurate financial reporting.

Scalability and Efficiency
As your business grows, financial management of revenue recognition manually can become increasingly complex. Payment automation scales with your business, handling higher volumes of transactions without additional manual effort. This ensures that your revenue recognition processes remain efficient and accurate, even as your organisation expands.