Modern technology has automated repetitive tasks, such as manually entering data from invoices and processing payments by check, with intelligent solutions that can read invoices and match data to records in an ERP system. Misconceptions about automating payments could be holding districts back from boosting their efficiency, cost savings, and security. In fact, automations like these have transformed AP processes at Epping SD, and could streamline workflows at other districts in three key ways.
For both school districts and vendors, automating AP processes is a win-win for speed, accuracy, and security.
In AP workflows, using a paper check costs an average of $6. That covers the costs of printing, check stock, postage, envelopes, and labor. This can quickly add up to thousands of dollars spent per year. At the same time, it can take districts days to process invoices, get approvals, and send payments manually each month. Automations and electronic payment options can significantly cut these costs.
Epping SD has adopted AI-enabled technology that integrates with their ERP system, enabling invoices to be submitted electronically, captured automatically, and routed through a digital approval workflow.
“We’ve cut out nearly all costs related to printing checks,” Vayda says. “For a school district processing hundreds or thousands of invoices a year, that’s a savings of thousands of dollars. Time savings to process and mail checks are even greater: what used to take several days can now be completed in a matter of hours.”
With automated processing and payments, districts gain visibility into the status of invoices and approvals. “Automation eliminated paper shuffling, manual data entry, and bottlenecks. Everything is centralized, which means invoices don’t get lost and approvals move quickly,” Vayda explains.
2. Capture Invoice Data Automatically
AI-enabled accounts payable solutions can automatically pull information from invoices, eliminating manual data entry into districts’ ERP software. With the functionality to automatically sync invoices from an email inbox, read handwritten or typed PDFs, customize the level of data detail, and view invoices and purchase orders side-by-side, districts can make invoice processing faster and more accurate.
Vayda shares that “Automated invoice processing has taken away the need for staff to manually type invoice details. This has freed up our business office team to spend more time on budget oversight, reporting, and supporting schools, instead of doing repetitive entry work.”
Sophisticated systems can also check for and notify users of errors, use logic to match missing fields with data in a district’s ERP system, and even automatically create a PO based on an invoice. Automation handles the manual work, only requiring accounts payable teams to check entries for accuracy and submit them for approval.
3. Pay Vendors Quickly and Securely
For vendors, receiving payment quickly is critical to business operations, but traditional check payments can take 10 days or more. Today, electronic disbursement options, from ACH payments to virtual credit cards, offer significantly faster payments — sometimes allowing receipt of funds in minutes.
At Epping SD, these fast payments are especially important for the vendors they rely on daily. “Being able to pay vendors on time — and sometimes earlier — has built stronger trust. This is especially important with critical service providers like transportation, food service, and technology vendors. Vendors know the district is dependable, which strengthens relationships and helps us better serve students,” Vayda shares.
Electronic payments also protect sensitive financial information and reduce the risk of fraud. Districts don’t need to store vendors’ bank data, and there’s no risk of lost or stolen checks. Modern payment solutions can offer vendors increased transparency and clear communication via a portal to check their payment status, view transaction history, select their preferred payment method, and even upload invoices directly to districts’ accounts payable systems.
Accounts Payable Transformed
For both school districts and vendors, automating AP processes is a win-win for speed, accuracy, and security. “School and district staff appreciate how much easier the process is. The business office has less stress at month-end, and principals appreciate not having to deal with paperwork delays,” Vayda says.
Epping SD’s vendors have also been positive about the shift to automated processes. “They value faster payments and clearer communication,” she said. With benefits on both sides, automating AP processes can be truly transformational.