In an era where automation and AI are transforming finance functions, optimizing your Accounts Payable (AP) process is no longer a luxury — it’s a necessity. During our recent webinar, we explored the five essential AP features for 2025, how to evaluate them based on your business needs, and the common pitfalls to avoid when implementing an AP automation solution.
Whether you’re just starting to explore AP automation or already in the evaluation or enhancement phase, this article will guide you through the critical capabilities that make a measurable impact in today’s finance landscape.
Why AP Automation Matters?
As our poll results showed, manual workload and slow invoice processing continue to be the biggest AP pain points for many organizations. In fact, 37% of attendees cited it as their number one challenge, followed closely by lack of visibility and reporting.
In today’s fast-paced business environment, inefficient AP processes can result in:
- Missed early payment discounts
- Duplicate payments or fraud
- Compliance risks
- Strained supplier relationships
Which is why prioritizing the right features in your AP automation strategy is key.
5 Essential Accounts Payable Features to Consider in 2025
- Invoice Automation Powered by AI: The cornerstone of any AP solution is its ability to accurately capture and process invoices, particularly in PDF or email formats. AI can drastically reduce the time spent on data entry, coding, and even PO invoice matching.
What to look for:
- Touchless data capture from PDF/email
- Automated PO and GRN matching
- Recurring invoice handling
- Predictive GL coding using AI models
“Getting the data right upfront sets the foundation — if your capture isn’t accurate, everything downstream is impacted.”
- Workload Management and Analytics: Modern AP teams need real-time visibility into where invoices are stuck, who owns them, and what actions are needed. AI-powered workflows help assign tasks smartly, while analytics highlight bottlenecks and optimization opportunities.
What to look for:
- Issue detection (missing GRNs, price mismatches)
- Task routing and smart prioritization
- Workflow dashboards and exception heatmaps
- AI copilots for resolution assistance
- Compliance and Fraud Prevention: AI isn’t just for productivity — it’s also a defence mechanism. With cyber fraud growing, especially payment redirection scams, you need controls in place.
What to look for:
- Audit trails and role-based approvals
- Sanction list checks and VAT/TIN validation
- Bank detail change alerts
- Duplicate invoice detection
- ERP Integration: ERP integration is no longer optional — it’s the bridge between automation and financial reporting. With cloud ERP adoption rising, solutions must integrate seamlessly and securely across multiple systems.
What to look for:
- Pre-built integrations for your ERP (SAP, Oracle, Microsoft Dynamics, etc.)
- Multi-ERP and multi-entity support
- Real-time sync with your general ledger
- Vendor Self-Service Portal: Empowering vendors reduces your AP team’s workload. A good portal gives suppliers visibility and helps prevent payment inquiries, invoice resubmissions, and fraud attempts.
What to look for:
- Secure onboarding and document upload
- AI-powered query resolution
- Smart statement reconciliation
- Real-time invoice and payment status tracking
How to Measure ROI from AP Automation
To truly evaluate an AP solution, you need to benchmark your current process and identify where value can be unlocked. Key metrics to measure include:
- Invoice processing time
- Staff hours spent on manual tasks
- Late payment fees or missed discounts
- Duplicate payments or rework
- Invoice automation percentage
Example: If senior team members are coding invoices, their time may be better spent on strategic initiatives — AP automation can free that capacity.
Top tip: You don’t need a stopwatch — start by identifying how many invoices you process annually, how many full-time employees are involved, and the average cost per invoice.
AI Caveats to Watch Out For
While AI can supercharge your AP, be cautious of vague promises. Make sure your solution:
- Has ready-to-use models (not ones that require months of training)
- Offers explainable AI so you can understand why it made a decision
- Ensures your data privacy and regulatory compliance
Common Pitfalls to Avoid
Even with the right features, projects can go wrong. Here are some mistakes to sidestep:
- Overdesigning the solution: Don’t let perfection be the enemy of progress. Focus on high-volume use cases first.
- Excluding IT from the process: Bring IT in early. Their buy-in is critical for security, integration, and resourcing.
- Lacking a C-level champion: Executive sponsorship accelerates decision-making and promotes change management.
- Skipping discovery and planning: You need to know where you are, where you’re going, and how you’ll get there.
Next Steps for AP Success in 2025
Here are three immediate actions for anyone considering accounts payable automation this year:
- Evaluate your current process: Understand where time and money are being lost today.
- Prioritize your pain points: Focus on the features that will solve your biggest issues — whether that’s visibility, fraud, or workload.
- Calculate your ROI: Build a business case based on time saved, cost avoided, and increased control.
Need help? Our team has supported organizations like Logitech, JJ Foodservice, and the Finnish Government on their AP journeys.
Conclusion
2025 will be the year that separates organizations with reactive AP from those with intelligent, automated, and strategic AP processes. Whether you’re starting fresh or upgrading your current solution, these five features will help ensure your investment delivers real results.
Let automation work for you — free your team, reduce risk, and gain control.
Want More?
Reach out to our team for a tailored ROI assessment, implementation guidance, or a Personalized Product Demo.
