5 Signs Your AP Process Is Ready for Automation

The finance function is evolving faster than ever — and accounts payable (AP) is no exception. Once considered a purely operational back-office task, AP is increasingly recognized as a strategic lever for improving cash flow, vendor relationships, and compliance.

Yet, many organizations are still bogged down by outdated, manual processes. In my years of working with finance teams across industries, I’ve seen one common thread: the symptoms of a broken AP process are easy to spot — and they’re almost always solvable through automation.

So, how do you know if your AP team is ready to make the leap?

Here are five clear signs your AP process is due (or overdue) for automation.

1. You’re Still Manually Entering Invoice Data

If your team is typing invoice data into your ERP or finance system, you're operating at a high risk for errors and inefficiencies.

Manual data entry isn’t just slow — it’s costly. Typos, duplicate entries, and inconsistent formatting can result in missed payments, overpayments, and wasted hours spent chasing corrections.

What automation does: Modern invoice capture tools use OCR and AI to extract key fields (vendor name, invoice number, amounts, due dates) from PDFs, emails, scans — even handwritten invoices — with impressive accuracy. This isn’t just digitization; it’s intelligent data processing that eliminates human error at the source.

If you are using the excuse that you are not into new technology. This is not new technology. It has been around for over 20 years. But with the advent of AI, it has become more accurate and cost-effective.

2. Invoices Routinely Get Lost or Delayed

If invoices are still routed via email or — worse — printed and walked from desk to desk, you’re likely dealing with delays, miscommunication, and a lack of visibility.

This hurts more than just efficiency. Late payments can jeopardize vendor relationships, cause missed early payment discounts, and even introduce late fees or service disruptions. I recently had a client who it took over 4 months to pay an invoice. As a vendor, this resulted in countless unnecessary phone calls.

What automation does: An automated workflow routes invoices to the right approvers based on predefined rules (like amount thresholds or vendor type). Reminders and alerts ensure no invoice sits forgotten. Plus, everyone — from AP to procurement to the CFO — can see invoice status in real-time.

If you are not using automation, your vendors probably know it.

3. You’re Struggling with Month-End Closings

If closing the books takes days (or weeks), that’s a red flag. Manual reconciliation, incomplete data, and unprocessed invoices are some of the usual suspects.

In today's business climate, decision-makers need real-time financial data. Delays in closing the books delay everything — from cash flow forecasting to strategic planning.

What automation does: Automated AP systems sync with your general ledger, provide real-time accruals, and ensure that all transactions are accounted for and categorized properly — reducing the time and stress associated with closing.

4. You're Not Audit-Ready (Or Dread the Thought of It)

If audits trigger panic, your documentation and processes are likely too fragmented. Missing approvals, inconsistent invoice formats, and lack of traceability all create compliance risks.

What automation does: An AP automation platform maintains a complete audit trail — who did what, when, and why. It stores invoices, receipts, and communications in a centralized, searchable repository. When auditors come knocking, you’re ready in minutes, not days.

Auditors love it when your system is automated. I remember my first audit after we had automated our Accounts Payable process many years ago. I walked the auditor through our workflow, explaining that every invoice followed a structured approval process and was then automatically stored in our LaserFiche document management system. Each document was saved using a standardized naming convention, with metadata that included the approver's name and the dates of approval at each level.

She was amazed—she had never seen anything like it before. We simply sat her down at a computer, and she was able to easily search for any invoice. Find the document showing where it was purchased. Not only could she view the invoice itself, but she could also see each step of its approval process clearly outlined in the metadata.

The auditor was very impressed. It didn’t take her long to complete our sales tax audit, and she was soon happily on her way. We were relieved—and proud—that everything had gone so smoothly.

5. Your AP Team Is Drowning in Volume

Invoice volume has a way of creeping up — especially as your business grows or works with more vendors. If your team is overwhelmed, overworked, or constantly fighting fires, something’s got to give.

Adding headcount is one option — but it’s not always scalable, nor does it address the root cause. I think most AP departments are struggling to find and keep staff.

What automation does: A modern AP automation system handles high volumes effortlessly. Rules-based routing, AI-powered validations, and integration with your ERP allow the system to process and verify invoices automatically, freeing your team to focus on exception handling and value-added tasks.

Closing Thoughts: Is It Time to Automate?

If you recognized even one of the signs above, it’s worth asking yourself: What’s the cost of doing nothing?

AP automation isn’t just about saving time. It’s about enabling smarter, faster, and more resilient finance operations. And with today's cloud-based solutions, automation is more accessible than ever — even for mid-sized organizations with lean teams.

The transition doesn’t need to be overwhelming. Many companies start by automating just one part of the process — such as invoice capture or approvals — and scale from there.

📌 Next step: Consider doing a workflow assessment with your AP team. Identify the true bottlenecks, quantify the manual workload, and explore where automation can bring the most value.

The future of AP is automated. The real question is: Are you ready for it?