Why Document Management isn't a Substitute for AP Automation

In the increasingly digitized business landscape, many organizations rely on more than one system to operate their back offices. From internal forms to processing payments, each part of an organization’s optimized tech stack serves a purpose. 

But what if you’re using the wrong solution for a task, one that could be more efficiently performed by another tool? 

For example: automated document management is the ideal tool for quickly and accurately collecting, sorting, filing, and storing your organization’s important documents—both AP-related and otherwise. However, systems like these are not designed to be a substitute for full AP automation solutions, which can transform your entire invoice-to-pay lifecycle.  

In this blog, we’ll explore why document management alone isn’t enough and why adding AP automation to your tech stack can deliver major benefits to your business.  

Document Management Alone Isn’t an End-to-End Solution 

Like many modern technologies, document management has evolved over time. What began as a paper-based, check-heavy series of processes has now transformed for many businesses into an automated, electronic solution that can handle hundreds of thousands of documents at a time.  

Despite modern automated document management’s impressive capabilities, it’s not the same thing as AP automation.  

The most common misconceptions causing this confusion for many organizations include: 

• “If I have a document management automation solution, I don’t need AP automation.” 

• “Document management is handling my document collection, organization, and storage automatically—all of the relevant information is obviously flowing to my AP team as well.” 

• “I don’t want a complicated tech stack, so I can just use my document management solution for all of my back-office processes.”  

The truth? Document management automation’s primary function is to digitize a document that used to be paper and then transport it into your database where it can be easily accessed and retrieved. While this makes it easier for the AP team to access the invoices, files, and forms they need for their day-to-day responsibilities, it doesn’t eliminate the manual effort of searching, emailing, and then accurately processing each document. That adds time and mental strain on a team whose main goal is keeping your organization financially stable. 

Additionally, many vendors are now offering all-in-one solutions that offer document management and AP automation within one central platform, reducing the headache of training staff on a new or complicated system.  

Putting it simply: document management automation isn’t a substitute for AP automation. In order to position your organization for success and cultivate a cohesive back-office ecosystem, pairing an AP automation solution with your existing document management system is ideal. 

AP Automation Defined – And What It Can Do For Your Business 

AP automation “digitalizes transactions and minimizes manual tasks on a global scale, streamlining invoice-to-pay processes, enhancing efficiency and compliance, and optimizing working capital.” (SAP) 

In layman’s terms, AP automation empowers your AP team to work smarter and more effectively—maximizing both efficiency and their financial expertise.  

What AP Automation Does 

While your document management solution has already streamlined the way your business manages, organizes, and stores files and forms, AP automation goes one step further. Its robust capabilities help your AP team:  

• Cultivate more free time for strategic initiatives and planning 

• Boost data accuracy and cohesive record-keeping processes 

• Improve the invoice-to-pay lifecycle 

• Enhance supplier relationships with on-time payments 

• Prevent fraud attempts and attacks with enhanced security features and insights into your entire cash flow life cycle 

If your business is considering adding or pairing AP automation with your existing document management solution for enhanced accuracy, data security, and a more cohesive back-office, schedule a demo with one of DocuPhase’s automation experts today!