2024 Trends: End-to-End Automation for AP Processes

This post is part of G2's 2024 technology trends series. Read more about G2’s perspective on digital transformation trends in an introduction from Chris Voce, VP, market research, and additional coverage on trends identified by G2’s analysts.

End-to-end AP process automation will improve efficiencies

This end-to-end automation will help minimize human errors, reduce the chance of fraud, and improve overall relations between buyers and sellers of goods and services.

The importance of AP process automation

The AP process usually consists of four main steps—capturing invoice data, approving invoices, approving payments, and making payments. 

Each step is crucial and depends on the accuracy and consistency of the step before it to ensure vendors are paid on time, and positive relationships are maintained.

However, as an invoice is passed from one step to the next and the number of humans involved in the process increases, errors or delays can occur. Some roadblocks include inaccurate invoice data entered into the accounting system, not knowing who should review and approve invoices, and not recognizing duplicate invoices that result in duplicate payments.

Luckily, there is already a plethora of software to help automate some of these tasks, resulting in a more seamless process with fewer inconsistencies and mistakes. 

One of the main deterrents to fully automating this process is the challenge of successfully integrating other systems (ERP, accounting, etc.) into AP automation software, which leads to accurate and quality data. 

Based on recent G2 data and market trends, I believe that not only will the popularity of these AP automation features continue to increase, but we’ll see more platforms automate the entire end-to-end AP process. 

G2’s AP automation software feature questions data back the trend

G2 feature questions are category-specific questions that allow reviewers to rate different product features from 1-7. This information gives buyers and sellers a wealth of information about the features of products in a specific category, which features are most important, and how well those features satisfy users' needs.

The AP Automation category has 25 different feature questions, covering everything from analytics to integrations, as well as several questions about automating the AP workflow. 

Through August 2023 alone, there were over 16,400 responses to all feature questions, compiled from over 650 authentic user reviews. Four of the top five most answered questions were about features that help automate the AP approval process. These features are listed below:

• Workflows which include workflows for reviewing and approving invoices
• Payments to help identify incomplete or late payments
• Capture to capture and extract invoice data
• Due dates to track the priority of invoices based on due dates

This leads me to believe that users would benefit from software that automates all steps involved in the AP processes but, most importantly, extracting accurate data from invoices. If this data is incorrect, the subsequent steps in the workflow will cause inaccuracies and errors, delaying the payment to vendors and creating more work for all parties involved.

The graph below further highlights the increasing responses to automation feature questions in 2023 and their correlation to new reviews.

According to G2 data and the chart above, the average number of user responses to these four questions increased by over 500% between January and August 2023, while the percentage of reviewers answering these questions also increased. 

While only 23% of new reviewers answered these questions in January, by August, 69% of respondents rated these automation features. 

Giving the customers what they want

The figures above prove that automation within AP is important to users, and those features are being utilized more and more. Hence, it makes sense for vendors to focus on automation to stay competitive in their industry and offer a product their customers want and need. 

In 2024, we will see an influx of AP software products offering full end-to-end automation for the AP process, giving customers the features that they have deemed most important.

Learn more about how an accounts payable specialist certification helps buyers and vendors.

Edited by Jigmee Bhutia