Last year, we began our AP automation review series, digging deeper into the services some AP automation providers offer. The series will continue over the course of the next few newsletters, with this month’s review covering AvidXchange.
AvidXchange offers a full pallet of automation services for purchasing, invoicing, and payments. Each application and service offers ways to make business process improvements. The AP automation provider has been working with Abila for over two years to continually ensure the modules work effectively with Abila MIP Fund Accounting™.
Applications and Services – Remember, there may be additional costs for these items
Purchase Order Application – This application allows the users to create purchase orders electronically, match the purchase order to the invoice, and approve the purchase order. Additionally, once approved the PO can be automatically provided to the vendor with the associated invoice given to you.
Bill Services – AvidXchange Bill Services receives and organizes invoices from your suppliers/vendors through a variety of methods. Invoices may be received by email, uploaded or mailed to a designated PO Box. The information is then available electronically, anywhere and at any time. From here, the process flows seamlessly into Invoice Application.
Invoice Application – The system is designed to automate your current workflow and approval process. Once an invoice is received, the system captures the necessary information, codes the invoice and automatically routes it based on the workflow and approval route designed during the implementation process. Invoices from here can flow directly to the accounting system for payment processing or to AvidXchange’s payment application.
Payment Application – The AvidXchange payment application allows you to pay vendors based on their preferences, taking greater advantage of any discounts offered.
Pay Services – Payment of invoices may remain with you or can be outsourced to AvidXchange in their pay services. You remain in control of who, and when, to make payments. This service utilizes their network to ensure:
- Data management
- Supplier enrollment into programs
- Conversion of suppliers to electronic methods
- Due diligence on any outstanding payments
- Supplier education
AvidXchange ensures data is secure and provides W9 processing and 1099 reporting.
One advantage with AvidXchange is the fact that all electronic items are held by Avid, which decreases the server or cloud storage your company would need to withhold the electronic records.
Integration with Accounting Software (MIP)
Currently, AvidXchange’s integration with MIP/Abila is an upload. AvidXchange is working on completing a change to utilize API integration.
Licensing and Cost
AvidXchange has no minimums. Costs are based on a per payment or per transaction arrangement.
Organizations Best Suited for AvidXchange
Organizations with the following factors may determine AvidXchange to be the best AP automation solution for them:
- Multiple locations
- High volume
- Housing and/or property groups
- Those processing over 100 invoices per month with the best value reached at approximately 350 invoices per month
If you would like to implement an AP automation solution but are struggling with where to start, then read our Nine Step Deployment Strategy, or contact an NFP Partners accounting consultant. Check back next month as we continue our series, A Deeper Dive into AP Automation.
Nonprofit Accounting Consultant