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The Role of Analytics in AP Automation

Automation gets the job done — but AP analytics tells you how to do it better. Discover how leading finance teams turn data into smarter decisions, faster cash flow, and next-level control.

Robert Lynch, P2P Insights Analyst
Published on April 30, 2025

When finance teams think about accounts payable automation, their minds go to faster approvals, fewer manual errors, and smoother workflows. But there’s a powerful force working quietly behind the scenes — analytics.

In today’s fast-paced finance landscape, where invoice volumes are exploding and supplier ecosystems stretch across continents, simply automating tasks isn’t enough. Organizations need clear, actionable insights into what’s happening, why it’s happening, and how to make it better. That’s where AP analytics steps in — turning raw financial data into strategic intelligence that improves everything from cash flow visibility to vendor performance.

From global manufacturers like Logitech to government giants like Finland’s Handi initiative, leading organizations are unlocking value not just by digitizing their AP workflows, but by using real-time data to drive smarter decisions.

“Advanced analytics and data science remain a top technology priority for CFOs, with 78% planning to increase investment over the next 24 months” Gartner

What is Analytics in AP Automation?

In 2025, analytics in accounts payable automation isn’t just about reporting — it’s about real-time intelligence that powers smarter, faster financial decisions.

At its core, AP analytics refers to the dynamic collection, visualization, and analysis of data across the entire invoice lifecycle. From AI-driven invoice capture to automated matching, approval routing, exception handling, and final payment — every touchpoint becomes a data-rich opportunity to gain insights and optimize performance.

  • Spot invoice bottlenecks and outliers
  • Predict cash flow and liabilities
  • Track early-payment discounts missed or captured
  • Optimize payment timing and supplier terms
  • Uncover compliance risks and audit gaps

This turns your AP team into a centre of strategic intelligence — not just a payment processor.

Why Manual AP Falls Short Without Analytics

Manual accounts payable systems are riddled with blind spots:

  • You don’t know where invoices are stuck.
  • You can’t forecast accruals or working capital accurately.
  • You rely on guesswork to handle vendor disputes or late payment penalties.

And as volume grows, the problem doesn’t scale — it explodes.

“AP departments that rely on manual or partially automated systems experience 3x more errors and 4x longer cycle times.” — PwC Finance Benchmarking Report

7 Ways Analytics Supercharges AP Automation

1. Unlocking Touchless Processing at Scale

Analytics identifies patterns — such as which vendors follow PO guidelines or which departments stall approvals. Machine learning and historical data help systems like SoftCoAP improve smart matching, exception handling, and automated routing, boosting straight-through processing (STP) rates.

Case: JJ Foodservice achieved 80% touchless processing of 100,000 invoices annually with just three AP staff thanks to predictive routing and match confidence analytics.

2. Real-Time Spend Visibility

Modern AP dashboards offer instant clarity on:

  • Total outstanding liabilities
  • Unapproved or delayed invoices
  • Spend by supplier, entity, or category
  • Forecasted payments and working capital impact

Case: Chanelle Pharma moved from zero visibility to full spend control using SoftCo analytics and SAP integration.

3. Intelligent Exception Management

Not every invoice flows smoothly. Analytics helps you trace root causes, quantify the cost of delays, and pinpoint problematic users, suppliers, or departments. It flags issues early — before they escalate.

Case: Superdry improved AP efficiency from 5% to 80% by using SoftCoAP’s exception analytics and real-time alerts.

4. Supplier Performance and Risk Insights

With analytics, you can monitor vendor behavior, spot recurring issues, and improve procurement outcomes through data-driven negotiations.

Case: The Finnish Government used SoftCo analytics to streamline collaboration across 70+ departments and reduce processing costs by 80%.

5. Compliance and Audit Readiness

Whether it’s GDPR, SOX, or tax regulations, AP analytics ensures compliance with:

  • Automated audit trails
  • Validation timestamps
  • Real-time policy adherence monitoring

Organizations using embedded analytics report faster, smoother audit preparation — with greater transparency and peace of mind.

6. Smarter Cash Flow Forecasting

Predictive analytics reveals when invoices are likely to be approved or paid, helping you better time payments, capture early-payment discounts, and avoid cash crunches.

7. Benchmarking and Continuous Optimization

With AP analytics, you can measure and improve:

  • Invoice cycle time
  • Cost per invoice
  • Touchless processing rates
  • Approval delays by department

These insights enable ongoing refinement and turn your AP function into a performance engine — not a back-office burden.

The SoftCo Advantage: Built-In Analytics, Real Results

SoftCo doesn’t treat analytics as an optional add-on — it’s embedded throughout the platform. With SoftCoAP and SoftCoP2P, you get:

  • AI-powered dashboards
  • Exception and anomaly detection
  • Supplier performance KPIs
  • Approval workflow tracking
  • Cash forecasting tools
  • Real-time spend and liability breakdowns

Case: Logitech now processes 100,000+ invoices per year with 83% confidence-matched, touchless processing — across multiple languages and currencies — powered by analytics-integrated workflows.

What Happens If You Ignore AP Analytics?

Let’s be blunt — automation without analytics is like flying blind. You won’t know:

  • Where to reduce delays or improve cycle time
  • Which vendors create costly bottlenecks
  • How exceptions affect cost, compliance, or reputation
  • Whether your AP process is improving — or stalling

Final Word: Turning Data into Dollars with AP Analytics

As invoice volumes climb and global operations grow more complex, AP analytics isn’t a luxury — it’s a necessity.

With analytics embedded in every stage of the accounts payable lifecycle, you gain:

  • Faster approvals and fewer delays
  • Greater control over working capital
  • Improved vendor relationships
  • Regulatory compliance and audit readiness
  • A platform for ongoing process improvement

With SoftCo, you’re not just automating invoices — you’re unlocking powerful financial intelligence.

Curious how SoftCoAP or SoftCoP2P could transform your finance function?

Talk to our team and see the impact for yourself.

Frequently Asked Questions

What is analytics in AP automation, and how does it differ from traditional reporting?

Analytics in accounts payable (AP) automation extends beyond traditional reporting by providing real-time intelligence across the entire invoice lifecycle. It involves the dynamic collection, visualization, and analysis of data, enabling finance teams to make smarter and faster decisions. Unlike static reports, AP analytics offers actionable insights that help identify bottlenecks, optimize cash flow, and enhance overall financial operations.

How does AP analytics improve financial decision-making?

AP analytics empowers finance teams with real-time data, allowing for proactive decision-making. By analysing key metrics such as invoice processing times, payment cycles, and supplier performance, organizations can identify inefficiencies, forecast cash requirements, and negotiate better terms with vendors. This level of insight leads to more informed strategies and improved financial health.

Why is investing in AP analytics crucial for CFOs in 2025?

According to Gartner, advanced analytics and data science remain a top technology priority, with 78% of CFOs planning to increase investment over the next 24 months. In the context of AP automation, analytics provides the tools necessary to navigate economic uncertainties, ensure compliance, and drive operational efficiency. For CFOs aiming to lead data-driven organizations, leveraging AP analytics is essential for strategic growth and resilience.

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