AP Integration and Its Importance for SMB Finance Teams
For a lot of SMBs, their accounts payable (AP) workflow is usually isolated and works in silos. Collecting vendor payment data, verifying the data, making payments, and recording the payments in audit-ready documentation all happen separately, and oftentimes manually.
According to a PYMNTS Intelligence and American Express study, 36.2% of mid-sized firms had not automated any AP processes, while only 15.3% had automated three or four AP processes.
Without integration, SMB finance teams have to constantly switch between email, spreadsheets, accounting platform, bank portals, and vendor follow-ups. This constant switching between different platforms and systems can slow down the vendor payment cycle. All that back-and-forth ultimately makes it harder to see at a glance whether a vendor’s payment is ready, scheduled, paid, failed, or still in the process.
AP automation software integration for SMBs should help connect the entire AP workflow across vendor records, payment preparation, execution, tracking, accounting sync, and reconciliation.
When you integrate AP automation with existing systems, it improves the entire AP process. There are fewer manual updates across tools and cleaner vendor data. Less switching between accounting software, spreadsheets, and bank portals. You get better visibility into payment status and easier reconciliation.
AP Automation Software Integration for SMBs and What It Needs to Connect With
The best way to judge how AP automation software works for you and your team is to see how it connects all the different systems the team already uses. Payment workflow automation for SMBs should be able to connect accounting software, vendor records, approval and payment workflows, reconciliation, and reporting into a single workflow.
| Connection Point | Role in the AP Workflow |
|---|---|
| Accounting software like QuickBooks | Keeps all financial activities involving vendor payments synced with the books |
| Vendor records | Stores vendor payment details, payment preferences, and tax information for accurate and on-time payments |
| Approval workflows | Makes sure the vendor bills are routed and approved by the right person before payment |
| Payment workflows | Helps prepare, schedule, and release vendor payments to the correct vendors |
| Payment methods | Supports different payment methods that vendors actually use, like ACH and check |
| Reconciliation process | Makes it easier to match payment activity with accounting records |
| Reporting views | Offers visibility into payment activity, AP status, and processes that need extra attention |
Fitting AP Automation into an Existing SMB Workflow
For AP automation to work for an SMB, the workflow should fit seamlessly into the way the business already works without requiring the team to build a workflow from scratch. The goal here is to remove reliance on manual processes and instead focus on having an AP workflow that is manageable for the team. AP automation doesn’t replace an existing workflow; it adds to it by creating a cleaner workflow that is easier to manage with more visibility.
A connected AP workflow usually looks like this:
- The invoice or bill is automatically captured from either email, upload, accounting software, or another source.
- The bill is reviewed to confirm its legitimacy and accuracy. Then the vendor record is checked for completeness.
- It confirms vendor readiness as well as the payment details and moves the payment-ready items into the payment queue.
- It selects ACH, checks, or other payment methods, where applicable.
- It shows payment status changes when a payment has been scheduled, paid, failed, returned, or cancelled.
- The bill and payment data sync back to QuickBooks or the accounting system.
Importance of Two-Way Sync in an Accounts Payable Workflow
A two-way sync is an important feature of an automated AP workflow. The basic idea behind a two-way data sync is that data can move between the AP system and the accounting system, instead of being pushed in just one direction. This keeps AP and accounting records aligned. If data only moves one way, the team may need to manually update vendor payments and records.
For a two-way sync to work well, SMBs should also understand which system is the source of truth, how fields are mapped, how often the data syncs, what happens when a sync fails, and who has permission to update or release AP records.
A two-way sync is beneficial to SMBs in a number of ways, such as:
- Keeps vendor, bill, and payment records up-to-date since updates do not have to be entered separately
- Helps reduce duplicate vendor records by keeping vendor data synced across systems
- Payment details are reflected in the accounting system after payment runs
- Improves reconciliation and keeps payment records and accounting records aligned
- Gives finance teams better visibility into cash flow by helping them easily see what payments are due and what has already been paid
A simple rule for SMBs:
If AP prepares, schedules, pays, or updates something, the accounting record should reflect the relevant update. The same is true in reverse: if vendor, bill, or accounting details change in the accounting system, the AP workflow should be able to receive the relevant updates.
What Types of Data Should Be Synced Between Systems
In an automated AP workflow, not all the data needs to be synced. The goal here is to have clean vendor data that makes payments, reporting, reconciliation, and vendor management easier. And in order to have cleaner vendor, bill, and payment data, the following data sets need to be synced:
- Vendor details, including vendor name, contact details, address, payment terms, tax ID, W-9 or tax form status
- Bill details such as invoice number, bill amount, due date, and accounting codes
- Payment updates to help the team track whether a payment has been scheduled, paid, failed, or returned
- Payment method and date to support reconciliation and cash flow planning as well as payment status visibility
- Payment references to help connect payment activity back to accounting records
Setting Up AP Automation Without Heavy IT Work
SMBs need AP automation software that can launch without becoming a major IT project that takes up resources and time. Instead of having to build a custom AP system, SMBs can greatly benefit from AP automation software that fits in with the tools and processes the team already works with.
To keep setup simple and low-IT, SMBs can:
- Connect to accounting software, such as QuickBooks, instead of building a custom connection
- Have the team review vendor records, payment details, and flag any missing details before payments begin
- Confirm which bill and payment updates should sync between the AP system and the accounting system
- Assign user roles to the team, set up user permissions for who can approve or schedule payments, or release funds
- Run small tests after vendor updates or payment runs, and train the team to handle their part of the process
- Expand gradually by starting only with the core payment workflow, then expand once the process is working smoothly
What to Check Before Choosing an Integrated AP Tool
Here’s a quick checklist to move through before choosing the best payment workflow automation for SMBs that works for your team:
- Does it support QuickBooks Online sync where relevant?
- Can it support vendor onboarding and provide payment-ready vendor records?
- Does it offer ACH and check payment support that your vendors use?
- Does it provide payment tracking, status visibility, and an audit trail for payment activity?
- Is there in-built reporting for payments and cash visibility?
- Does the AP tool provide W-9 collection, TIN matching, and 1099 compliance continuity where needed?
- Does it help support reconciliation after payments are sent?
- Can the finance team set it up and manage the workflow without heavy IT support?
How Zenwork Payments Connects AP Automation to Existing Systems
Zenwork Payments offers features that streamline AP processes for SMBs by connecting vendor records, payments, tracking, and QuickBooks sync into a single workflow. Some of its key features are:
- Seamless vendor onboarding through the xForce vendor portal
- 2-way data sync with QuickBooks Online
- Access to secure payment-ready vendor records
- Support for unlimited ACH payments and checks
- Customizable approval workflows
- Payment tracking and status visibility
- Built-in 1099 reporting with W-9 collection and TIN Matching
Give your team one workflow for bill capture, approvals, payments, reporting, and accounting sync.
Scenarios Involving Automated AP Workflow for SMBs
QuickBooks-connected AP workflow
There is a small finance team that uses QuickBooks for their accounting, but they still prepare vendor payments manually. When AP automation was integrated into their vendor payment workflow, it helped them manage vendor, bill, and payment data in a cleaner workflow.
Payment preparation without tool switching
A service business that has been growing over the past few years prepares their weekly vendor payments using data from different sources like email, spreadsheets, and bank portals. After making the switch to a connected AP workflow, the team can now see the number of vendors who are payment-ready and schedule payments.
Vendor payment status in one place
When suppliers require information on payment status, instead of checking multiple systems, AP automation software integration for SMBs can help the team review payment statuses such as scheduled, paid, failed, or returned in one workflow.
Vendor readiness before payment
If a vendor is ready to be paid, but the tax or payment information is incomplete, the payment cannot be completed. Using an automated AP process can help identify which detail is missing and collect the required information before payment moves forward.
FAQs
1. How can SMBs integrate AP automation with existing systems?
SMBs can integrate AP automation into their existing systems by choosing a platform that offers seamless integration with accounting software like QuickBooks and by setting up the AP workflow in stages. They can start by connecting the accounting system, reviewing vendor records, choosing which bill and payment updates should sync, setting user roles, and testing a payment run, before expanding the workflow.
2. What systems should AP automation connect with first?
AP automation software should first support a two-way sync with accounting software like QuickBooks, followed by vendor records, payment methods, payment tracking, and reporting.
3. Why is two-way sync important for SMBs?
A two-way sync is important for SMBs as it helps keep bills, vendors, and payment records aligned between AP automation and accounting software.
4. Do SMBs need heavy IT support to set up AP automation?
Not usually. A good SMB-focused AP tool does not require heavy IT support. Platforms like Zenwork Payments offer QuickBooks Online two-way sync, vendor onboarding, ACH and check payments, payment tracking, and 1099 compliance features.
5. How does Zenwork Payments help with AP integration?
Zenwork Payments makes AP automation easier by connecting vendor onboarding, vendor payments, ACH and check payments, payment tracking, QuickBooks sync, and 1099 compliance in one workflow.
Manage vendor payments without disrupting your existing systems.
Connect your AP workflow with Zenwork Payments today!