Managing invoices can be one of the least rewarding finance tasks. It’s common to spend long hours trying to get approvals or filing paper documents that no one ever wants to see again. Once you’re past the early startup stage, manual accounts payable systems create stress for your team and slow down payments. A reliance on human data entry also increases the chance of costly mistakes.
Digital transformation in finance offers an escape route, through tools that improve and streamline your invoicing workflows. Many businesses are adopting paperless accounts payable processes to enhance efficiency and control.
This guide will help you follow their example. We’ll explain what a modernised accounts payable workflow involves, and discuss the steps you can take to implement one effectively.
What’s a paperless accounts payable system?
Paperless accounts payable software is the new standard for modern finance teams, replacing outdated procedures with faster, automated tools. It eliminates reliance on paper invoices and payments by introducing electronic payment methods that streamline day-to-day operations.
In this setup, invoices arrive through secure digital channels, or are scanned using optical character recognition (OCR) tools that extract data automatically. Either way, all data and records needed for accounts payable tasks are housed digitally, usually within cloud software. This is a far more efficient and secure way to handle finance, allowing for better workflows and less waste.
The benefits of accounts payable automation software
Going paperless offers a wide variety of benefits. A paperless system saves time and reduces operating costs. It also adapts better to hybrid and remote work environments, and gives finance leaders more flexibility and oversight.
Here are the main advantages of switching to a paperless accounts payable system:
- Efficiency: Automated data capture speeds up invoice processing and shortens approval cycles.
- Cost savings: Reducing printing and labour expenses delivers measurable budget relief.
- Visibility: Dashboards and searchable archives provide ongoing oversight of spending and liabilities.
- Compliance: Digital audit trails simplify reporting and help you align with region-specific e-invoicing mandates.
- Sustainability: Less paper waste reinforces environmental commitments and improves ESG reporting.
- Remote readiness: Cloud-based systems enable secure invoice review and approval from any location.
- Vendor relationships: Faster, more predictable payments improve trust with vendors and diminish disputes.
- Security: Encryption, role-based access, and automated controls limit fraud and unauthorised changes.
How to make accounts payable paperless
Transitioning away from paper may seem like a lot of work, but with the right strategy and tools it’s straightforward. These steps outline how to move from manual workflows to invoice automation software:
- Assess current workflows: Documenting how invoices are currently received and paid highlights bottlenecks, and can indicate where digitisation will have the most impact.
- Select the right software: A platform like Moss, with OCR invoice capture and seamless ERP and accounting system integration, provides the most dependable foundation for your paperless system.
- Migrate documents: You’ll need to scan and digitise important records, then set rules for handling paper invoices moving forward. It’s important to establish a clear approach to archiving information. Using dedicated receipt-capture tools can prevent lost documentation.
- Implement electronic payment methods: When adopted in place of cheques, bank transfers and direct debits minimise delays and simplify invoice reconciliation.
- Conduct vendor onboarding: Clearly communicating expectations for digital invoices, paired with resources for suppliers, facilitates a smoother transition to your new system.
- Train staff: Role-specific guidance helps employees understand both the technology and the updated procedures that govern it.
- Consider a pilot program: Limited rollout with a subset of invoices allows feedback collection and workflow refinement before you expand the process company-wide.
Choosing the right accounts payable automation software
Paperless accounts payable software should do more than store invoices in the cloud. Look for a platform that offers:
- OCR invoice capture
- Multi-level approvals
- Real-time dashboards
- Support for compliance and audit trails
- Integration with your other ERP and accounting tools
- Options for scaling as your company grows
In addition, make sure your chosen software provides electronic payment methods. These replace manual cheques with faster and more secure alternatives, such as bank transfers, virtual cards, direct debits, and digital wallets. These options accelerate settlement and reduce administrative costs. They also create more accurate payment histories that simplify reconciliation during audits.
With Moss, you get access to secure, virtual card solutions. Our corporate cards work with Apple Pay and Google Wallet, and they give you full control over limits and help you maximise spending efficiency.
Compliance and change management for scaling companies
Paperless accounts payable systems can also help your business maintain compliance. In the UK, HMRC’s Making Tax Digital initiative is pushing companies toward digital record-keeping. In Germany and other EU countries, PEPPOL standards govern how e-invoices must be exchanged. Using accounts payable automation tools that adhere to these frameworks reduces your risk of penalties and audit issues.
Keep in mind that providing the technology isn’t sufficient to ensure compliance. An efficient transition requires buy-in from leadership, IT, and procurement teams. To encourage adoption, you’ll want to establish clear communication, train staff, and set internal policies. Presenting your paperless solution as a way to reduce administrative burdens and boost supplier relationships also makes it easier to gain support from employees who are resistant to change.
Modernise your accounts payable process with Moss
As a fully digital accounts payable solution, Moss provides automation to enhance every step of your financial process. That begins with invoice capture through OCR technology, which extracts data accurately and avoids the need for manual entry.
Then you can configure multi-level approval flows to reflect company policies, minimising delays and improving oversight. Your finance team gains real-time budget visibility, which in turn helps managers understand spending patterns and forecast cash flow with confidence. Payment execution is handled through digital channels, and secure records facilitate compliance and audit requirements.
This feature set gives your growing business both control and flexibility. Instead of depending on questionable paper trails, you get a single online platform that reduces friction and eliminates repetitive work. Learn how to build a better accounts payable process with Moss.
FAQs
To make your accounts payable paperless, first conduct a thorough review of existing procedures to identify inefficiencies. Next, you’ll need to select a spend management platform that integrates with your accounting system and offers automation features. After that, you can develop a transition plan with designated goals for vendor onboarding and staff training.
OCR scans invoice images and extracts text, then AI models validate the data and detect anomalies. This improves your invoice accuracy, and avoids the errors that are common when using manual data entry.
The risks of making your accounts payable paperless include non-compliance with local e-invoicing requirements and mishandling of sensitive financial data. You can mitigate these risks by using software that applies encryption and meets recognised standards.
Many organisations see returns within the first year after moving to a fully paperless system. This is a result of lower processing costs, faster approvals, and fewer late payment penalties.