In this article, we at Monite explain what AP automation is, how companies can develop their own solution, and how they can benefit from it.
What is AP Automation?
Accounts payable automation (AP automation, for short) is the process of digitally handling incoming invoices that saves time and costs and decreases human error rates. Other upsides of AP automation include improved transparency, and the mitigation of fraud risks and non-compliance issues.
Companies with sizeable accounting departments benefit from AP automation solutions, which can be provided by a bank, neobank, payments platform or Fintech SaaS provider.
Should Fintechs develop their own AP processing solutions?
For Fintech companies looking to build the next Super App, developing an AP automation solution in-house can look like the logical next step. However, building a sophisticated AP automation tool comes with its own setbacks. Rarely can a Fintech startup afford to allocate enough capacity to build and maintain a solution that provides a seamless experience for its clients.
Unfortunately, without significant investment (that could be used on developing core functionality), a home-built AP solution will be subpar. Even worse, it might not really pay off, as limited functionality means limited revenue opportunities.
Companies wishing to save their engineering talent and money can opt for an API invoice processing solution.
What are the benefits of an API invoice processing solution?
Integrating an API-based AP automation solution saves time and costs that would otherwise be spent on both development and maintenance. In addition to direct savings, it also opens new revenue opportunities.
Monite Accounts Payable API was built with Fintech companies in mind. It basically allows clients to process (collect, review, approve and pay) incoming supplier invoices without ever leaving the payment provider’s environment.
What can Monite API invoice processing solution do?
As you can learn from our API documentation, Monite AP automation API can take handle the entire invoice processing cycle. Thanks to its Invoice Recognition API and other features, it can:
- Collect invoices. Users can upload or email invoices (case by case or in batches)
- Review invoices. Users can annotate, ask colleagues for additional information
- Approve invoices. The approval flow can be customized by the client
- Pay invoices. Payments can be pre-prepared
- Reconcile invoices. All payments-related documents can be easily exported
- Analyze AP payments. Users can get a full overview of suppliers and paid invoices