AP Automation Market Definition

Companies use accounts payable (AP) automation software to manage large volumes of invoices and financial transactions between a company and its suppliers. While most accounting solutions include AP features, many of them do not provide functionality to manage complex AP processes. Companies choose AP automation software to reduce manual work and avoid human errors. AP automation software is used by accountants and by members of the accounting department responsible for accounts payable. It can also be used by managers and executives to monitor AP processing activities. This type of software simplifies complex AP activities and helps accountants manage large volumes of supplier invoices. AP automation improves the efficiency and the accuracy of the AP department and helps with other accounting activities such as financial closing. AP automation solutions can be delivered as standalone products or as a part of accounting suites that also include AR automation, billing and invoicing, and payment processing features. This type of software is integrated with accounting solutions or with accounting modules of ERP systems.

To qualify for inclusion in the AP Automation category, a product must:

• Deliver customizable workflows to streamline repetitive accounts payable tasks such as data entry
• Include document capture and imaging features to convert paper invoices into electronic documents
• Process large volumes of supplier documents such as invoices or credit memos
• Provide a single repository for users to search and retrieve AP documents
• Match supplier invoices with corresponding purchase orders to accurately track the amounts owed
• Offer approval processes for payments, debits, or any modifications to AP transactions
• Comply with accounting standards and regulations for AP processing
• Integrate with accounting software, ERP, or advanced financial systems such as corporate performance management (CPM)

Results Index Description

A product’s Results score is calculated by a proprietary algorithm that factors in real-user satisfaction ratings for a number of results-related review questions. Software buyers can compare products in the AP Automation category according to their Results scores to streamline the buying process and quickly identify the products that produce the best results based on the experiences of their peers. For sellers, media, investors, and analysts, the Index provides benchmarks for product comparison and market trend analysis.

Badges are awarded to products for: Best Results (highest overall Results score), Best Estimated ROI (based on a combination of estimated time to ROI and time to go live), and Users Most Likely to Recommend (highest likelihood to recommend score).

Products included in the Results Index for AP Automation | Fall 2022 have received both a minimum of 10 reviews and 5 responses from real users for each of the results-related questions featured in our review form by August 30, 2022. These ratings may change as the products are further developed, the sellers grow, and as additional opinions are shared by users. A new Results Index report will be issued for this category as significant data is collected.