AP departments are often outdated, with many still relying on manual systems. AP automation is becoming a priority for many firms as B2B payments and invoice volumes increase and as complex, incompatible stacks of technology tools thwart efforts to digitize.
Business leaders are seeking out AI to improve their AP cycles, aiming to boost efficiency, cash flow and savings. Partnerships and third-party integration can streamline firms’ efforts to digitize and simplify AP functions.
Automation in B2B payments provides a wide range of benefits, helping with everything from security to revenue. Many firms expect AP automation to improve cash flow, combat check fraud and provide valuable insights that empower them to make better-informed decisions.
Accounts payable (AP) departments are due for an upgrade. Burdened by cumbersome paper-based systems and incompatible technology stacks in the face of rising business-to-business (B2B) payment volumes, outdated AP processes are becoming a costly sticking point. Now businesses are looking to automation and artificial intelligence (AI) to provide more streamlined, efficient and secure solutions.
The advantages of AP automation are manifold, including fraud reduction, improved cash flow and advanced analytics capabilities. Plus, integrating third-party solutions can ease the transition to digital systems. AP automation not only boosts efficiency but also provides valuable insights for informed decision-making, positioning companies for future success.
- Accounts Payable Departments Need a Payments Upgrade
- Automating AP Has Multiple Benefits for Business Efficiency
- Automation Enables Fraud Protection, Payment Monetization and Advanced Analytics
- AP Automation Is Becoming an Imperative
Accounts Payable Departments Need a Payments Upgrade
AP departments are often outdated, with many still relying on manual systems. Many firms are prioritizing AP automation as B2B payments and invoice volumes increase and as complex, incompatible stacks of technology tools thwart efforts to digitize.
AP departments are stuck in the past.
Businesses’ AP departments are often bogged down by costly, inefficient legacy processes, with the average enterprise reporting that half the invoices it receives are on paper and 38% of its payments are made manually. Against this backdrop, 36% of firms cite automating AP as a key priority.
50%
of invoices that the average enterprise receives are still paper documents.
B2B payments are on the rise.
These matters are especially pressing as more and more invoices are sent and received. Nearly eight in 10 businesses expect the number of payments made through their AP systems to grow in the years ahead. Plus, 34% of businesses process more than 5,000 invoices per month.
Many businesses navigate a complex tangle of incompatible tech solutions.
Another pain point for businesses is the widespread lack of a unified solution for their AP processes. In fact, close to 60% of large businesses — those bringing in $10 billion to $20 billion in revenues per year — utilize five or more different AP systems. This piecemeal digitization of firms’ AP departments can lead to its own problems, including delays and greater risk of human error.
Automating AP Has Multiple Benefits for Business Efficiency
Business leaders are seeking out AI to improve their AP cycles, aiming to boost efficiency, cash flow and savings. Partnerships and third-party integration can streamline firms’ efforts to digitize and simplify AP functions.
Business leaders see AI as key to AP’s future.
78%
of CFOs say having AI in their AP cycle is highly important.
Seventy-eight percent of CFOs state that using AI in their AP cycle is highly important. Moreover, 73% of executives at mid-sized businesses say that automating AP boosts cash flow, augments savings or helps with the firm’s growth. Plus, 85% say AP automation offers more accurate, efficient and streamlined processes.
Third-party add-ons can simplify AP digitization.
Procure-to-pay software suites can embed third-party solutions into existing systems, making it easy for companies to integrate AP automation as an extension of their current workflows.
Nevertheless, most businesses still handle these matters the old-fashioned way. Only 17% of enterprise firms run their source-to-pay cycles largely without human involvement.
Emburse is partnering to integrate AI into AP systems.
Expense solutions firm Emburse has partnered with Finexio to enable its customers to move from manual processes to Finexio’s AI-powered digital platform.
“Our customers are increasingly looking for payment options that can help them deliver greater value for their organizations,” Emburse CEO Marne Martin stated. “Finexio’s Payments as a Service will help them do exactly that.”
Automation Enables Fraud Protection, Payment Monetization and Advanced Analytics
Automation in B2B payments provides a wide range of benefits, helping with everything from security to revenue. Many firms expect AP automation to improve cash flow, combat check fraud and provide valuable insights that empower them to make better-informed decisions.
Paperless payments boost security in B2B transactions.
AP automation can help reduce scams. More than one-fifth of mid-sized firms expect these innovations will result in fraud prevention.
“If you cut out checks, you cut 60% of fraud right there,” Ernest Rolfson, founder and CEO of Finexio, told PYMNTS Intelligence.
With AI, he noted, Finexio achieves more than 90% accuracy in predicting suppliers’ virtual card acceptance, boosting security and efficiency.
60%
Share of fraud roughly attributable to the use of paper checks
AP automation can increase cash flow.
Forty-four percent of mid-sized firms anticipate AP/accounts receivable (AR) automation will yield cost savings and enhanced cash flow. Companies such as Finexio include tools within their AP B2B platforms to monetize payments, such that the technology not only increases efficiency but also generates revenue in its own right.
Payments automation powers in-depth data analytics for firms to make more informed decisions.
Enhancing data reporting and analytics is a focus for 53% of AP leaders, and digitization streamlines the process. Plus, 51% of businesses that are planning innovations in automated AP/AR solutions in the next few years cite improved data availability and insights as a key benefit.
AP Automation Is Becoming an Imperative
The inefficiencies and vulnerabilities of outdated AP systems can no longer be ignored. As businesses evolve, so should their AP processes. Firms that embrace intelligent automation position themselves at the forefront of innovation, ready to tackle the challenges of tomorrow’s business landscape. Integrating up-to-date AP technologies is key to streamlining operations and driving growth as payment volumes rise.
Automated AP systems can do the following:
- Reduce fraud common in paper-check-based accounting
- Increase efficiency, cutting down labor costs
- Create payment monetization opportunities, boosting cash flow
- Power data analytics that enable the most informed strategic decisions
The transformation of AP through automation is more than a technological upgrade. It is an imperative for businesses aiming to stay competitive in an increasingly digital marketplace. As more firms recognize these benefits, AP automation will increasingly become the norm, paving the way for more innovative, efficient and secure business operations.
Automation in accounts payable isn’t just about cutting costs — it’s about transforming the entire financial operation to unlock new revenue streams, enhance security and provide real-time insights. At Finexio, we see AP automation as a critical driver of business growth, not just a process improvement. The future of accounts payable lies in intelligent automation that does more than streamline workflows. It monetizes payments, reduces fraud and empowers businesses with the data they need to make smarter decisions. Finexio is at the forefront of this transformation, enabling companies not only to optimize their AP processes but also to capitalize on them.”
CEO & Founder
About
Finexio is a trailblazer in B2B payments, offering an innovative Accounts Payable Infrastructure as a Service model. Embedded in leading Procure-to-Pay software suites, Finexio's platform delivers a fully managed, AI-powered solution that optimizes, monetizes and secures the entire payment life cycle. Our infrastructure seamlessly orchestrates payment delivery, streamlines supplier management, prevents fraud, enables payment monetization and provides robust analytics. This approach transforms AP from a cost center into a strategic revenue generator. By offering cutting-edge technology with white-glove service, Finexio significantly enhances operational efficiency, payment security and customer satisfaction for Procure-to-Pay partners and corporate clients. Trusted by hundreds of forward-thinking CFOs and processing billions in secure payments annually, Finexio is driving a paradigm shift in financial operations for mid-market and enterprise organizations across industries.
PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists include leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multilingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.
The PYMNTS Intelligence team that produced this Tracker:
Managing Director: Aitor Ortiz
Writer: Carson Olshansky
Senior Content Editor/Writer: Alexandra Redmond
Content Editor: Joe Ehrbar
Senior Research Analyst: Augusto Solari
Research Analyst: Mariano Soler
We are interested in your feedback on this report. If you have questions or comments, or if you would like to subscribe to this report, please email us at feedback@pymnts.com.
Disclaimer
PYMNTS SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, AND, IN PARTICULAR, SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOSS OF REVENUE, OR LOSS OF USE, ARISING OUT OF OR RELATED TO THE CONTENT, WHETHER SUCH DAMAGES ARISE IN CONTRACT, NEGLIGENCE, TORT, UNDER STATUTE, IN EQUITY, AT LAW, OR OTHERWISE, EVEN IF PYMNTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
SOME JURISDICTIONS DO NOT ALLOW FOR THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, AND IN SUCH CASES SOME OF THE ABOVE LIMITATIONS DO NOT APPLY. THE ABOVE DISCLAIMERS AND LIMITATIONS ARE PROVIDED BY PYMNTS AND ITS PARENTS, AFFILIATED AND RELATED COMPANIES, CONTRACTORS, AND SPONSORS, AND EACH OF ITS RESPECTIVE DIRECTORS, OFFICERS, MEMBERS, EMPLOYEES, AGENTS, CONTENT COMPONENT PROVIDERS, LICENSORS, AND ADVISERS.
Components of the content original to and the compilation produced by PYMNTS is the property of PYMNTS and cannot be reproduced without its prior written permission.
The Accounts Payable Tracker® Series is a registered trademark of What’s Next Media & Analytics, LLC (“PYMNTS”).