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Accounts Payable Automation: A Key to Future-Proofing Your Finance Function

  • Writer: Werner Harahap
    Werner Harahap
  • Apr 21
  • 5 min read

 

Accounts Payable (AP) automation is no longer some distant goal. It’s an absolute necessity for organizations to stay competitive, efficient, and resilient in the face of rapid technological change.

In 2025, 20% of AP teams are already fully automated, and 41% plan to automate within the next year. Invoice management leads the way among currently automated processes at a 25% adoption rate, followed by purchase order (PO) and expense management (both at 17%).


Manual AP processes, from invoice review and approval to payment creation and mailing, are time-consuming, error-prone, and increasingly out of step with the demands of modern business. Having previously led AP automation projects, I’ve seen firsthand how valuable time savings are achieved in the AP cycle, with fewer errors and improved cash flow.


In this post, I will draw from this experience and explore why moving from manual to automated AP processes is essential, how to secure leadership buy-in, and what emerging trends finance professionals should prepare for.

 

The Case for AP Automation


Why Automate?

  • Efficiency Gains: Automated AP systems process invoices 2.5x faster than manual ones, saving up to 60% in processing costs.

  • Cost Savings: Manual invoice processing can cost $15-$20 (USD) per invoice, while automation reduces this to $2-$3 (USD).

  • Error Reduction: Automation drastically cuts down on data entry errors, duplicate payments, and lost invoices.

  • Fraud Prevention: Automated systems flag suspicious activity and provide audit trails, reducing AP fraud risk by over 50%.

  • Productivity: Automation frees up staff to focus on strategic, value-added tasks, improving morale and collaboration.

 

From Cheques to Electronic Payments: An Analogy


Our legacy manual AP process was basically like mailing letters: you write/compile, stuff, stamp, and mail each envelope. Slow, error-prone, and difficult to track.


Conversely, AP automation is like email: instant, traceable, and integrated with digital workflows. The shift from cheques to electronic payments is just as transformative by speeding up transactions, improving visibility, and reducing risk.

 

How AP Automation Works


  • Invoice Receipt: Paper invoices are scanned; electronic invoices are captured automatically using optical character recognition (OCR).

  • Data Capture & Validation: Systems extract and validate key details (vendor, PO, amount, etc.).

  • Three-Way Matching/Verification: Automated checks ensure invoices match POs and receipts, reducing errors.

  • Approval Workflow: Invoices are routed for approval with reminders and escalations for delays.

  • Payment Processing: Approved payments are scheduled and executed electronically.

  • Exception Handling: Discrepancies are flagged for review, not lost in paperwork.

  • Reporting & Analytics: Real-time dashboards provide insights for better cash flow and compliance.

 

Customer Notification and Communication


A major milestone in a project I supported was achieved when we connected our accounting ERP to our email system, enabling us to automatically send notifications to suppliers informing them that an electronic payment was made.


Automated systems can now notify vendors and internal stakeholders at every step – invoice received, payment scheduled, payment sent – improving transparency and vendor relationships. This proactive communication is crucial for maintaining trust and potentially negotiating improved payment terms.

 

Securing Senior Leader Buy-In


Gaining the support of senior leadership is essential for any successful AP transformation. It’s about translating the impact of automation into strategic business outcomes they care about: cost savings, risk reduction, and scalable growth.


With strong leadership buy-in, AP automation doesn’t just streamline the back-office, but it elevates the entire finance function, empowering teams to drive smarter, faster decision-making across the organization.

Now is the time for senior leaders to invest in AP initiatives as a crucial investment in efficiency, control, and future readiness. More specifically, it helps with your:


  • Return On Investment (ROI): Demonstrate time and cost savings using industry benchmarks (e.g., 60% reduction in processing costs).

  • Risk Mitigation: Highlight fraud reduction and improved compliance.

  • Strategic Value: Emphasize how automation frees up finance teams for higher-value work.

  • Scalability: Show how automation supports business growth without increasing headcount.


Practical Tips for Gaining Support

  • Present a clear business case supported by data and projected savings.

  • Share case studies or success stories from similar organizations.

  • Involve leaders early and address their concerns about change management.

 

Emerging Technology Trends in AP and Accounting


With the AP function undergoing rapid transformation, driven by powerful new technologies that are reshaping finance workflows, companies should be aware of the emerging technology around them.


New innovations enable faster processing, stronger controls, and deeper insights – capabilities that have become essential in a competitive, data-centric business environment. Organizations staying ahead of these trends will not only future-proof their payables operations but also unlock new opportunities for efficiency, accuracy, and growth.


  • Cloud-Based Solutions: Enable real-time access, collaboration, and seamless updates.

  • AI and Machine Learning: Automate data entry, detect anomalies, and provide predictive analytics for better decision-making.

  • Robotic Process Automation (RPA): Handles repetitive tasks like invoice processing and month-end close.

  • Advanced Data Analytics: Delivers actionable insights and supports compliance with evolving regulations.

  • Blockchain: Provides secure, immutable records, simplifying audits and enhancing transparency.

  • ESG Integration: Automation supports the inclusion of environmental, social, and governance metrics in financial reporting, meeting stakeholder and regulatory demands

 

Preparing for Disruption: What Finance Professionals Should Do


Staying ahead of disruption means embracing change, rethinking business continuity, and leaning into new technology in order to thrive in unpredictable environments.


By investing in automation and scenario planning, today’s finance professionals are turning uncertainty into opportunity and resilience into an enduring competitive edge. Being adept at adapting is no longer a luxury, but simply the new standard for success in an increasingly volatile world.


  • Upskill Continuously: Stay current with AI, analytics, and cloud technology.

  • Champion Change: Lead digital transformation efforts and communicate benefits clearly.

  • Collaborate Across Functions: Work with IT, procurement, and leadership to align goals.

  • Embrace Data-Driven Decision Making: Use real-time insights to drive strategy.

  • Focus on Value-Added Activities: Let automation handle the routine, and focus on analysis, forecasting, and providing strategic insights to drive business success.

 

Conclusion


Manual AP processes are quickly becoming obsolete. Automation delivers dramatic improvements in efficiency, cost, accuracy, and security, while positioning your organization to thrive amid ongoing technological disruption.


If you’re ready to move your accounts payable from paper and cheques to streamlined, automated workflows, our team at Phoenix Rising Consulting Group can help.


We specialize in guiding small and medium-sized organizations through transformations such as AP automation, from technology selection to change management and process redesign.


Contact us today to start your journey toward a future-ready finance function. Let’s build a smarter, more resilient AP process together.

References


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With gratitude, mutual respect, and reciprocity, we acknowledge that the Phoenix Rising Consulting Group team members live, work and play on the traditional territories of the Blackfoot Confederacy (Siksika, Kainai, Piikani), the Tsuut’ina, the îethka Nakoda Nations (Chiniki, Bearspaw, Goodstoney), the Otipemisiwak Métis Government (Districts 5 and 6), and all people who make their homes in the Treaty 7 region of Southern Alberta.

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