How to Automate Your Accounts Payable Process

In 2026, the biggest drain on a business owner’s time is not the business itself—it’s the admin. Accounts Payable (paying bills) is a prime candidate for automation. If you're still downloading PDF invoices, manually typing them into Xero, and then manually entering the bank details into your banking app, you're living in the stone age. Here is our 2026 "Touch-Free" Accounts Payable workflow.

Step 1: Automated Capture with Hubdoc

Hubdoc is your digital post office. Every time you get a bill, you simply email it to your unique **Hubdoc email address** or use the mobile app to snap a photo. Hubdoc’s AI (OCR) will then:

• **Extract:** Supplier name, date, invoice number, and total amount.
• **Categorize:** Map the bill to the correct "Chart of Accounts" code in Xero (e.g., "Electricity").
• **Auto-Post:** Send it to Xero as a "Waiting for Payment" bill with the original PDF attached.

Step 2: Batch Payment Approval

Instead of paying bills one by one, go into Xero's **Bills to Pay** screen. Select all the bills you want to pay this week. Click **"Batch Payment."** Xero will generate a single file (ABA file) that you upload to your bank portal. This allows you to pay 20 bills in a single bank transaction, saving you from entering 20 separate sets of BSB and account numbers.

Step 3: Auto-Synchronization

Once you’ve paid the batch, the bank feed will show a single large transaction. Xero's reconciliation engine will automatically match that large bank line against the 20 bills you just paid. All you do is click "OK" once. **Process complete.**

Summary: Better Data, Less Busywork

Automating your accounts payable doesn't just save time; it gives you a much clear view of your future cash flow obligations. At PrepMyBook, we help our clients implement these workflows so they can spend more time scaling and less time paying. Let's make 2026 your most efficient tech year yet.