Accounts payable automation: A checklist for choosing the best partner

The automated accounts payable (AP) market is expected to grow from $3.08 billion in 2023 to over $7.01 billion by 2030, according to Grand View Research. Many factors are pushing the changes. 

Cost reduction

From cutting the volume of paperwork and banking costs to earning rebates from virtual card payments, payments technology has vastly altered the accounts payable landscape. Because all of the manual elements are removed, including any mailing costs and the costs associated with ACH (automated clearing house), there are significant savings to be made in the AP department.  Furthermore, it means a closer and more fruitful relationship with your suppliers — large and small — through the integration of back office systems and supplier enablement.

Fraud reduction

We know that the fraud taking place in manual payments is increasing rapidly. In the last few years, criminals have been getting more sophisticated and organized. In fact, the 2024 AFP Payments Fraud and Control Survey reported that checks are the most vulnerable payment method, with 65% of organizations surveyed experiencing check fraud. Conversely, findings from the survey show that digital payments, such as virtual cards, saw a drop in fraud from 9% of organizations surveyed in 2022 to 3% in 2023. 

Because an end-to-end automated AP system from WEX uses virtual card numbers for every payment, the risk of fraud is much smaller. Virtual cards are single-use or limited-use digital numbers which protect the buyer’s financial information through tokenization – the process of creating a digital representation of a real thing. 

Tax management made simple with AP automation

A WEX automated accounts payable system is fully integrated with your enterprise resource planning (ERP) tool so that you have all the information you need to account for your business expenses via your AP system.

While the benefits of AP automation are clear, finding the right partner requires careful consideration. Every business is unique in its processes, markets, and supplier relationships, so your chosen partner must be able to work with your existing systems and stakeholders.

Here’s what to look for in a payments solution provider:

1. Partnering with a company that understands my business

What are my payments technology needs and goals (medium and long-term)?

Looking at your current AP systems, you will need to consider your specific requirements, from invoice processing and volume to approval systems and reporting requirements. What kind of suppliers do you have, and how flexible can they be?

What are my AP long-term goals?

Your AP partner should be able to adapt to your company’s size, industry, and evolving needs. Consider your current AP system’s capabilities, such as invoice processing, approval workflows, and reporting requirements. You’ll also want a solution that scales with your business and integrates with your existing accounting and ERP systems.

In addition to cost savings, maintaining strong supplier relationships is also important. Your partner should offer a scalable solution that supports growth while reducing costs through rebates, automated workflows, and efficient supplier onboarding.

WEX has a fully integrated supplier onboarding process tailored to work with your systems and those of your suppliers — with a dedicated team to make it happen.

2. A company that can integrate with my existing systems, procedures, and with my people

A successful AP solution should easily integrate with your existing systems, including ERP and accounting platforms, while being intuitive for staff to use. Training and ongoing support are essential to ensure your team is prepared for a smooth transition.

Things to consider include:

• User-friendly interface for AP staff and approvers
• Comprehensive training and support for long-term success
• Supplier onboarding campaigns tailored to each vendor
• Compatibility with mobile and remote teams
• Understanding of key stakeholders including AP, finance, and IT teams
• A system that is seamless and scalable — both nationally and globally

Your partner should not only excel at technology integration but also work harmoniously with your internal teams and suppliers. WEX brings decades of experience in integrating payment solutions, making the transition seamless and scalable for businesses of all sizes.

3. A company with expertise in onboarding suppliers and vendors

Running your business includes investing time and energy in supplier relationships. Supplier enablement, by definition, needs to cater to the needs of your vendors. WEX aims to help your suppliers not only to recognize the benefits of a vendor payments system for them but also to help them integrate it into their system.

So, you need to seek a virtual payments partner who:

• Knows the suppliers most likely to be first adopters — e.g. newer suppliers with a digital-only system or perhaps a more significant supplier
• Has a proven method for onboarding suppliers in payments technology
• Provides ongoing support to help vendors fully transition to automated payments

4. A proven track record and forward-thinking expertise

Selecting an established partner with industry experience is important, but it’s also important to find one with a vision for the future. Your AP partner should understand current trends in automation, virtual cards, and payments technology, while keeping an eye on future developments in AI, machine learning, and regulatory compliance.

When evaluating potential partners, ask yourself:

• Does the company understand AP automation, virtual cards, and supplier enablement?
• Are they staying ahead of trends in payment automation and AI?
• Do they have expertise in cross-border payments and regulatory issues?
• Can they scale with my business as it grows?

This is a fast-changing environment, and organizations large and small need to be confident that the choices they make now will see them into a successful future.

As you evaluate your options, remember that choosing the right AP payments partner is an investment in your company’s future. With the right solution, you’ll reduce costs, mitigate fraud, and strengthen supplier relationships, all while staying ahead of industry changes. to be confident that the choices they make now will see them into a successful future.

For more insights and updates on corporate payments, check out:

• 5 ways you can reduce fraud by choosing virtual cards
• Supplier enablement: Debunk the myths and build stronger relationships
• Adopting digital cards to streamline AP operations

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.

Editorial note: This article was originally published on November 30, 2023, and has been updated for this publication.

Sources:
Grand View Research
Association for Financial Professionals