Managing invoices doesn’t have to be a time-consuming process. Accounts payable (AP) automation eliminates repetitive work and ensures finance teams pay vendors on time. For growing SMBs, this shift toward automation means greater efficiency and fewer mistakes.
This article explains what AP automation↗ is and its key benefits. Plus, we’ll explore how Moss helps growing SMBs implement a seamless AP workflow that scales with their business.
What’s AP automation?
AP automation↗ involves using software to pay vendors. Instead of manually sorting through invoices and entering details by hand, finance teams use AP automation software to capture, check, and route statements. The software can track and archive every invoice, giving finance teams a clearer picture of outstanding balances.
For growing SMBs, this shift matters because higher invoice volumes can overwhelm small teams. Accounts payable automation makes the work simpler and maintains control over cash flow↗.
How an accounts payable automation solution works
AP automation is built around a few key components that work together to keep everything running smoothly. Each part of the process removes the need for manual paperwork and replaces it with a cleaner, more dependable system↗.
Invoice receipt
Automated AP software collects invoices↗ from multiple digital sources, like emails or file uploads. The tool notes key details like supplier names, due dates, and totals automatically, then centralises everything in one place. This way, finance teams don’t have to hunt down documents.
Matching and workflow
A key part of accounts payable invoice automation is invoice matching. With three way matching, the system reviews the purchase order, goods receipt, and supplier invoice. If all three align, the payment goes ahead automatically↗.
If any information appears incorrect or inconsistent, the software flags it so the finance team can do a manual review. This maintains payment accuracy and reduces the risk of duplicates or incorrect charges.
Archive and audit
When finance teams approve invoices, automated accounts payable systems store them in a searchable digital archive, creating a clear audit trail for future reviews. Invoices then move to payment scheduling, where the software keeps payments on time and gives teams better visibility into cash flow. With direct integrations with accounting tools like Xero, QuickBooks, and DATEV, data stays accurate without extra work. Once payments go out, the system marks invoices as paid and updates the ledger automatically.
AP automation benefits and considerations
There are many positives of AP automation for growing SMBs, including:
- Operational efficiency: AP automation takes care of the repetitive tasks, like invoice capture, approvals, and payment scheduling. Teams spend less time entering data and chasing sign-offs and more time on strategic work that supports growth.
- Financial control: Real-time visibility gives finance leaders a clear picture of what the business owes and when. This prevents late fees and improves cash flow management.
- Error reduction: An automation solution reduces the risk of manual mistakes. The system logs every invoice digitally, lowering the chance of duplicates, lost documents, and missing information. Everything remains traceable in one place.
- Compliance and audit readiness: Digital workflows make it easier to maintain a consistent approval process. Built-in checks ensure every invoice follows company policy and local requirements, while organized records provide a transparent audit trail.
- Scalability: For growing SMBs, hiring more staff just to manage invoices isn’t always feasible. Automation makes it easier to handle higher volumes of work without increasing headcount, giving teams a scalable AP automation benefit as they expand.
While the benefits of AP automation are substantial, businesses should consider some limitations, including:
- Initial setup costs: Smaller teams working with tight budgets may struggle with up-front expenses, such as software licensing fees and data migration.
- Training and adaptation: Growing SMBs often have limited staff, so dedicating team members to learn and adjust to new systems can take resources away from core operations.
Why automation matters for growing SMBs
As SMBs grow, finance teams often face increasing invoice volume and may not have the resources to hire. Manual processes can slow payments, create errors, and limit visibility into cash flow. AP automation solves this by streamlining invoice capture and approval workflows.
For instance, Moss helped Venture Beyond↗ cut the time spent on invoice processing by 30% and recovered £30k in value-added tax. Automation and integrated workflows gave their finance teams full visibility and control, freeing them to focus on strategic growth instead of administrative tasks.
Implementing AP automation with Moss
Moss helps businesses move from manual tasks to a streamlined, end-to-end accounts payable workflow, from invoice capture through review, approval, and payment. The platform supports the full AP workflow, from invoice capture and data review to approval and supplier payment, helping keep the process structured, accurate, and traceable.
To get started, organisations can simply upload invoices directly into Moss. Moss scans uploaded invoices and pre-fills the invoice information it can extract (for example supplier, invoice number, and due date), so finance teams can review and complete any missing fields. Invoices are then routed through custom approval chains. Finance teams can track outgoing spend in real time and monitor budgets (actuals vs planned), helping them make informed decisions.
With Moss, every part of accounts payable lives in one centralised, easy-to-use platform. Our system integrates seamlessly with accounting tools like Xero↗ and Quickbooks so you can import key accounting data and sync transactions from Moss into your accounting tool with a few clicks. Each invoice includes a complete audit trail, showing who approved it and when. This gives teams confidence in compliance and reporting.
Make AP faster, smarter, and error-free with Moss
AP automation simplifies invoice management for finance teams by minimising manual entry, reducing errors, and ensuring payments go out on time. For growing SMBs, this means less repetitive work and more focus on managing cash flow and scaling operations.
By automating approvals, matching, and payments, teams get a clearer view of every transaction and maintain greater control over the process. Month-end closes faster, and vendor payments stay consistent.
Find out how Moss’ AP automation↗ tool handles invoices in a fraction of the time.
