.png)
The idea of implementing any automated system promises a sense of immediate relief for those struggling under outdated and overcomplicated manual processes.
In theory then, automating accounts payable should bring joy to the hearts of financial professionals drowning under wave after wave of vendor invoices. But in reality, the finance community in general is not enamored with the current availability of AP automated solutions, as a recent (April 2026) Reddit post highlights.
“I had enough,” the headline states. “Every AP automation is sure they’re magical, but actually they give us more work.”
This sentiment is reflected in the comments:
“I miss the AP staff we had before the implementation. They were meticulous.”
“We're on our 3rd AP system. Gets worse with each implementation.”
“I've been through a handful of AP automations. They never make less work, just different work.”
Not exactly a ringing endorsement of AP solutions, automation, or finance transformation in general. But at ExpenseOnDemand, we’re not ignorant to the challenges businesses can face when adding automation to their workflows.
If the solution isn’t up to the task, it will fail.
While our solution certainly isn’t magical, it is a viable and time-saving alternative to manual process. Those AP professionals who leverage automation to their benefit (and not a costly hindrance) can increase invoice processing speeds that are upwards of 80% faster than their peers.
The absolute biggest mistake organisations make is trying to automate inefficient or inconsistent processes. If your purchase order structure is unclear, supplier data is incomplete, or approval rules are inconsistent, automation won’t solve the problem.
It will simply surface it faster.
This in turn leads to far too much manual exception handling.
Many AP systems claim to automate invoice processing but still rely heavily on human intervention when something doesn’t match perfectly.
In poorly configured systems, exceptions quickly become the norm rather than the exception. Missing PO numbers, pricing discrepancies, or incomplete data can all trigger manual reviews, creating bottlenecks that slow everything down.
Organisations that get this right can reduce their exception rate to 9% or less, compared to 20-25% for businesses that aren’t set up to take full advantage of their automation.
And then, yet another common failure point is disconnected tools.
Many AP automation platforms operate as standalone systems that don’t fully integrate with ERP or accounting software.
This means:
Instead of a seamless flow from invoice capture to payment, finance teams end up managing multiple systems that don’t speak to each other. True automation should eliminate duplication, not create new layers of admin.
Effective AP automation starts at the very beginning of the process. Using OCR and structured data capture, invoice information is extracted instantly and standardised from the outset. That means no rekeying, no chasing missing fields, and no back-and-forth with suppliers to clarify basic details.
By capturing clean, complete data upfront, finance teams avoid the rework that plagues poorly implemented systems.
This ONLY works if inconsistent AP processes are addressed first.
Missing data points create manual activity, putting pressure on finance teams to do the work they initially brought the AP solution in to manage.
Effective AP systems can then utilise built-in policy controls, automatic PO matching, and real-time validation to ensure that incoming invoices are checked against company rules the moment they enter the system. Incorrect or incomplete submissions are flagged early and sent back for formal completion.
This shifts AP from a reactive function to a proactive one; a function that invoices them at the source and stops finance teams having to manage exceptions.
We also need to consider the tech stack.
AP automation should never operate in isolation. Instead of stitching together multiple tools, teams must rely on one connected workflow that reflects how finance actually operates. This often requires customised integrations that allow data to properly flow into ERPs and accounting systems.
This is an upfront task that can take time to get right, but once it’s built effectively, can help AP withstand the stressors of invoice processing in the same way shock absorbing foundations protect buildings from earthquake damage.
The pressure on finance teams isn’t slowing down, it’s accelerating.
Invoice volumes are steadily increasing as businesses scale, supplier networks expand, and transaction activity grows. Industry estimates suggest invoice volumes are rising by around 5–10% annually.
Without automation, that growth doesn’t just mean more invoices, it means more manual data entry, more approvals to chase, and more opportunities for errors.
AP teams end up spending more time keeping up, rather than adding strategic value.
Regulatory requirements and internal controls are also becoming more stringent, particularly as organisations scale. Finance teams are expected to maintain accurate records, enforce policy compliance, and remain audit-ready at all times.
Without automation, that balance becomes almost impossible to achieve.
By now, we’ve spent plenty of time looking at why AP automation fails or succeeds, but now it’s time to be practical. This is our playbook for getting it right the first time (with the help of ExpenseOnDemand).
Before introducing any new system, map your current AP workflow end-to-end:
Identify inconsistencies in PO usage, supplier data, and approval rules. Automation should be applied to a clean, standardised process.
A huge amount of AP friction comes from inconsistent or incomplete invoice data. The goal is to ensure invoices enter your system clean, structured, and ready to process.
This means:
With platforms like ExpenseOnDemand, invoice data is captured and structured automatically, reducing the need for manual correction later in the process.
Instead of relying on finance teams to catch issues manually, implement rules that validate invoices as they enter the system:
This shifts AP from reactive to proactive. ExpenseOnDemand supports this with customised approval workflows and real-time compliance checks, ensuring every invoice aligns with company policy from the start.
For AP automation to truly reduce workload, it must connect seamlessly with your accounting or ERP system. Look for:
ExpenseOnDemand’s ERP integrations ensure invoice data flows smoothly from capture through to reconciliation.
Your goal should be simple: maximise the number of invoices that require zero human intervention. To do this:
ExpenseOnDemand enables this by combining:
One of the biggest implementation mistakes is trying to automate everything at once. Instead:
This reduces disruption and ensures your system is optimised before scaling across the organisation.
Even the best AP system will fail if people don’t use it properly. Make sure:
ExpenseOnDemand is designed with usability in mind, from receipt scanning to approvals, helping drive adoption across both finance teams and the wider business.
Most AP automation failures aren’t caused by the idea of automation, they’re caused by poor execution. Platforms like ExpenseOnDemand bring all of this together in a single, unified system, turning AP from a reactive, manual process into a streamlined, intelligent workflow.
To go back to our original Reddit thread:
“I had enough… every AP automation is sure they’re magical, but actually they give us more work.”
This frustration is entirely valid and centralised around broken AP automation systems. Those which layer technology onto a process not established to run parallel alongside said system.
Because when AP automation does create more work, it’s not really automation at all.
Bad implementations push errors into exception queues instead of preventing them, add approval steps instead of simplifying decisions, and create duplicate workflows instead of connecting them.
To paraphrase another Reddit poster: The work doesn’t disappear, it just moves.
Good implementation fundamentally changes the way in which AP works. It updates processes and enforces consistent data capture, which then enables automation to actually support rather than hinder.
The big but very well hidden trap is trying to transform financial process by just buying a new piece of tech to ‘do the thing,’ rather than investing in an entirely new model of accounts payable operation that also includes a new software at its core.
Automating accounts payable requires a structured approach to ensure a smooth transition for AP teams and maximise the benefits for businesses. Automating accounts payable typically involves these key steps:
● Planning: Start by mapping your current AP processes, identifying bottlenecks, and defining desired outcomes. Involve stakeholders from various departments, such as finance, IT, and procurement, to gather insights, ensure organisational buy-in, and find the most suitable AP automation system.
● Data migration: Work closely with your AP automation vendor to ensure seamless data transfer and integration with your existing financial systems, ERPs, and other relevant applications. This will minimise disruptions and ensure data integrity.
● Training: Change management is essential for user adoption and successful implementation. Provide comprehensive training to AP staff and other stakeholders on the new system's features and workflows, and any new protocols such as data collection methods. Clearly communicate the benefits of the new invoicing process, addressing any concerns or resistance to change.
● Monitoring: Regularly review performance metrics, identify areas for improvement, and implement process optimisations. Leverage the system's reporting and analytics capabilities to gain insights and drive continuous improvement.
By following these steps, businesses can effectively implement accounts payable process automation to streamline operations, reduce costs, and enhance financial visibility and control.
AP automation software is designed to streamline and optimise the accounts payable process through a combination of features. It uses technologies such as optical character recognition (OCR) and machine learning to automate the capture and extraction of invoice data from various sources, including paper documents, PDFs, and electronic invoices. This eliminates the need for manual data entry, reducing errors and saving valuable time for AP teams.
AP automation software also includes features like automated approval workflows and seamless integrations with existing ERPs or accounting systems like Xero. This integration facilitates real-time data synchronisation, providing businesses with a centralised view of their financial operations and enabling better visibility, control, and decision-making across the organisation.
By automating the entire invoice processing workflow, from data extraction to approval routing and payment processing, AP automation software ensures a seamless and efficient accounts payable process.
Manual invoice processing often results in delays and inefficiencies, leading to missed opportunities for early payment discounts offered by suppliers. These discounts can represent significant cost savings for businesses, but they are frequently overlooked due to the time-consuming nature of traditional accounts payable processes.
An accounts payable automation solution can accelerate the invoice processing workflow by automating data entry, routing approvals, and facilitating timely payments. This streamlined approach ensures that invoices are processed promptly, enabling businesses to take advantage of early payment discounts before they expire.
Some of the reasons businesses of all sizes are adopting AP automation solutions include:
● Improved operational efficiency: By eliminating manual tasks, AP automation reduces processing times, leading to significant operational efficiencies and cost savings from reduced manual labour.
● Reduced risk of errors: A manual accounts payable process is more prone to errors (e.g. inaccurate invoice data, duplicate payments). Accounts payable automation software uses OCR and AI technology to automatically extract invoice data, eliminating manual data entry errors. AP software can also identify duplicate invoices before they are paid out.
● Protection against fraud: Automated data entry, validation checks, and approval workflows minimise the risk of fraudulent invoicing, which is a significant cybersecurity issue for businesses today.
● Enhanced cash flow management: Real-time visibility into invoice statuses, payment due dates, and financial commitments enables better cash flow forecasting and working capital optimisation.
● Strengthened supplier relationships: Prompt invoice processing and timely and accurate payments improve relationships with suppliers, enabling better negotiation terms and a more reliable supply chain.
Choosing the right AP automation software is crucial for maximising benefits and ensuring seamless integration with your existing processes and systems. When evaluating potential solutions, consider the following factors:
● Integration capabilities: The AP automation software you choose must seamlessly integrate with your existing financial systems, ERPs, and other business applications. Robust integration ensures data consistency, eliminates data silos, and provides a centralised view of financial operations.
● Scalability: AP automation solutions should be able to accommodate business growth at all stages. Even if you have a small business that receives a low volume of invoices, consider solutions that can handle increasing invoice volumes and adapt to evolving business needs without disrupting operations.
● Customisation options: Look for solutions with a range of features that can be customised to meet your specific needs. For example, ExpenseOnDemand lets users choose add-on features to meet their business requirements.
● Support: Look for software providers that offer comprehensive support to help your AP team resolve issues quickly, minimising disruptions to business operations. This can include onboarding support, live chat assistance, and responsive troubleshooting.
When choosing software, involve key stakeholders from various departments, such as finance, IT, and procurement, to ensure the software aligns with all departments and current systems in your organisation.
AP automation will be crucial in 2025 and beyond as businesses strive for greater efficiency, cost savings, and competitive advantage.
Today, business leaders recognise the challenges of traditional AP processing and are prioritising AP automation more than ever. According to recent research, nearly 71% of accounts payable leaders believe that smarter AP systems are the best way to improve accounts payable tasks and drive efficiencies.
The benefits of AP automation, including cost savings, improved accuracy, and enhanced supplier relationships, will only become more pronounced in the years to come.
The rise of affordable and scalable AP automation solutions like ExpenseOnDemand allows businesses of all sizes to automate their AP processes. With flexible pricing models and add-on features, companies can tailor solutions to their specific needs and budgets, eliminating barriers to adoption.
Book a Demo with ExpenseOnDemand to find affordable solutions for automating accounts payable.
%201.png)
