How to Improve the Accounts Payable Process in Large-Scale Enterprises Without Disrupting Operations

Accounts payable is no longer just a back-office function—it’s a frontline defender of financial health. And in 2025, that role is under more pressure than ever. Rising operating costs, shifting regulations, and the push for digital transformation are forcing finance teams to rethink how AP gets done. 

Consider this: A mid-sized hospitality chain recently discovered it was losing over £200,000 annually simply due to late payment penalties and missed early-payment discounts—all because of slow manual processes and disconnected systems.  

What started as a few delayed invoices had snowballed into a cash flow problem, vendor friction, and internal burnout. 

Unfortunately, that story isn’t unique. Many businesses still rely on outdated AP workflows that can’t keep pace with modern demands. But it doesn’t have to be that way. 

This blog explores 10 practical tips to help finance leaders future-proof their AP operations—boosting efficiency, control, and visibility without overwhelming the team. 

Want to stay compliant and ahead of the curve?
Read the blog: Ready for 2025? 10 Must-Know UK AP Standards 

10 Ways to Drive Accounts Payable Process Improvement 

Tip #1: Map Your Current AP Workflow—Then Break It 

Every process starts with good intentions—but over time, it can become cluttered with approvals, exceptions, and manual workarounds. Before you improve your AP workflow, you need to understand how it really works—not how it’s supposed to. 

Start by tracing the lifecycle of an invoice: When does it arrive? How is it captured? Who approves it, and when does it get paid? Document every touchpoint and handoff. You might be surprised how many unnecessary steps have crept in. 

It’s like organising your closet. You think you only wear what’s in the front—but when you pull everything out, you realise half the stuff doesn’t even belong there. AP is similar—you won’t know what’s broken until you see the full picture laid out. 

Once mapped, don’t be afraid to challenge the legacy structure. Do you really need three layers of approval for low-value invoices? Could two steps be merged? This isn’t about trimming for speed alone—it’s about building a process that’s logical, efficient, and scalable. 

Tip #2: Prioritise Automation Beyond Invoice Scanning 

Many companies stop automating just when things start getting interesting. Scanning invoices is helpful—but if someone still has to key in codes or chase approvals, you haven’t really solved the problem. 

Today, automation can go much deeper: matching invoices to purchase orders, flagging inconsistencies, routing documents to the right people, and even spotting suspicious transactions. 

Think of it like setting up autopay on your utility bills. You’re not just viewing the bill online—you’ve removed the task of remembering, logging in, and transferring funds every month. It just happens. 

That’s the level of relief AP teams can feel when automation is applied to more than just data capture. The key is to focus automation where your team wastes the most time, not where it’s easiest to implement. 

Tip #3: Shift to Real-Time AP Analytics 

It’s hard to steer the ship if you’re only looking at last month’s map. Traditional AP reports are often delayed, siloed, and hard to act on. What you need is live visibility—into what’s approved, what’s stuck, what’s due, and what it means for your cash flow. 

Modern AP analytics can track: 

• Average time to process invoices 
• How often early-payment discounts are captured 
• Trends in late payments or approvals 
• DPO (Days Payable Outstanding) over time 

Think about tracking a package online. You don’t want to know it was delivered a week later—you want to see where it is right now. The same applies to invoices and payments. 

When AP data feeds directly into forecasting, it helps finance teams make better decisions—not just about what’s going out, but how to align payables with broader financial goals. 

Tip #4: Improve Vendor Onboarding and Self-Service 

One of the most overlooked areas in AP is how you bring new vendors into the system. If your onboarding process is slow, manual, or inconsistent, you’re setting yourself up for delays, errors, and frustration—on both sides. 

Digitising onboarding—collecting bank details, tax forms, and contact info in one step—saves time and reduces back-and-forth. And once a vendor is in your system, giving them a way to track their invoice status can cut down on “Just checking in” emails significantly. 

Think of when you ordered something from a new website and didn’t get a confirmation or tracking info. You probably emailed support, right? Your vendors feel the same way if they can’t see where things stand. 

By making onboarding and visibility easier, you’re not just saving admin hours—you’re building better relationships and trust with suppliers. 

Tip #5: Revisit Your Payment Strategy 

Every payment is a financial decision—but too often, they’re made on autopilot. Whether you pay early, on time, or a bit late can impact your cash position, vendor goodwill, and even your bottom line. 

It’s worth stepping back and asking: 

• Are you timing payments to maximise cash flow? 
• Are you capturing early-payment discounts where possible? 
• Are there payment methods that reduce risk or save on transaction fees? 

Think of how some people pay their credit card bill right before the due date to hold onto their cash longer, while others pay early to keep their balance low. The strategy depends on your priorities—and the same logic applies to business payments. 

AP teams should align payment timing with cash planning, not just calendar dates. The smartest companies use their AP strategy as a tool—not just a task. 

Tip #6: Create Tiered Approval Workflows 

A £100 stationery invoice shouldn’t follow the same approval trail as a £100,000 equipment purchase. Yet many companies still treat every invoice the same—leading to unnecessary delays and overloaded approvers. 

Tiered approval workflows fix that. Low-risk invoices can be auto-approved or fast-tracked, while higher-risk or mismatched ones get escalated for review. 

Think of online orders. You might double-check a big electronics purchase, but you don’t think twice when ordering batteries. You trust the process for the simple stuff—and that’s the mindset AP workflows need. 

This reduces clutter for approvers, speeds up processing, and ensures attention is focused where it matters most. 

Tip #7: Strengthen AP Controls Without Adding Friction 

Controls and compliance are critical—but they shouldn’t turn AP into a bureaucratic black hole. The goal is to build smart, embedded controls that keep things moving while keeping things safe. 

This includes: 

• Role-based access to prevent unauthorised approvals 
• Automated audit trails that track changes 
• Exception alerts that flag unusual activity (like duplicate invoices) 

Think of how modern apps use two-factor authentication. It adds security without making your life harder—that’s how AP controls should feel. 

With the right design, you can have strong governance without slowing the process down or frustrating the team. 

Curious how outsourcing can strengthen your AP controls?
Read the blog: 11 Ways Outsourcing AP Reduces Fraud Risk 

Tip #8: Integrate AP with Procurement and ERP Platforms 

When AP operates in isolation, things fall through the cracks: unmatched invoices, duplicate data entry, and inconsistent records. Integration across finance, procurement, and inventory systems is the fix. 

With connected systems, everything from purchase requests to payments flows through one consistent pipeline—reducing errors, improving visibility, and enabling smarter reporting. 

It’s like syncing your calendar with your to-do list and reminders. You avoid double-booking, see the full picture, and catch conflicts before they happen. That kind of clarity is invaluable in AP. 

Tip #9: Train for a Digital-First AP Team 

As automation reshapes AP, the skills needed to thrive are shifting. Instead of just processing transactions, teams are now expected to manage exceptions, interpret data, and improve processes. 

This means upskilling—not just on tools, but on understanding workflows, analytics, and even vendor communication. It’s not about replacing people—it’s about elevating their role. 

Think of a travel agent today. They don’t just book flights—they help navigate travel restrictions, compare options, and handle disruptions. The AP professional of 2025 is doing something similar—more advisor than processor. 

Tip #10: Run Regular AP Health Checks 

Even the most optimised AP process can drift over time. Vendors change. Teams change. New tools come in. That’s why regular health checks are essential. 

This isn’t about finding fault—it’s about asking the right questions: 

• Are our cycle times improving? 
• Are we meeting KPIs? 
• Are we capturing value (like discounts) we used to miss? 
• Are we still compliant with internal and external policies? 

Think of it like getting a car serviced. Even if it’s running fine, regular checkups keep it efficient, safe, and reliable. 

By reviewing performance quarterly or even monthly, you can spot issues early, adjust workflows, and make AP a continuously improving function. 

What’s the Bottom Line? 

Accounts payable may not always make headlines, but when it runs well, it quietly strengthens everything around it—cash flow, compliance, vendor trust, and team productivity. And in 2025, that kind of reliability isn’t a nice-to-have; it’s essential. 

Improving your AP process doesn’t mean tearing everything down—it means being intentional about what stays, what scales, and what needs to change.  

Whether it’s rethinking how approvals work, automating the right checkpoints, or giving your vendors more visibility, the goal is the same: to build a process that supports smarter, faster financial decision-making. 

If your AP function still feels stuck in reactive mode, these ten tips offer a practical place to start. And the sooner you act, the easier it becomes to shift AP from a cost centre to a quiet driver of value across your business. 

Originally published Jun 02, 2025 04:06:54, updated Jun 06 2025

Topics: Accounts Payable Optimisation, Accounts Payable Process