Five signs your accounts payable technology needs an upgrade
Hint: you and your AP team are still coping with process pains
Accounts payable (AP) technology has come a long way, but not all systems keep up with modern standards and the pace of artificial intelligence (AI). For accounts payable managers, outdated systems often mean more headaches than help, so if you’re still feeling constant pains in your AP process, it might be time to take a look at whether your technology is helping or hindering you. Here are five telltale signs that it’s time to invest in a more advanced AP automation system:
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Your invoice capture and processing is still slow and error-prone
How long is it taking your team to process invoices? Is it shorter than three days? It should be. If it’s not, your technology isn’t working hard enough for you. First, the invoice capture part of the process should be easy and make the start of the entire process smooth and quick.
If your team is using a template-based system, you're always tweaking fields to get the data right, which can lead to backlogs and mistakes. Take an AP manager at a construction company, for instance. With hundreds of invoices coming in daily, they might spend hours correcting templates that don’t pick up important data.
AP Automation Benchmarks at a glance
| KPI | AVERAGE | BEST-IN-CLASS  |
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| Non-PO Invoices |
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| Total invoice processing cycle time | 7.43 days | 2.04 days | |
| Touchless capture rate | 70% | 98.8% | |
| Automatic routing rate | 64.42% | 99.58% | |
| Average approval time | 3.27 days | 0.69 days | |
| PO Invoices |
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| Total invoice processing cycle time | 5.61 days | 0.98 days | |
| Touchless capture rate | 69.3% | 99.3% | |
| Touchless processing rate | 63.31% | 92.32% |
Beyond simply capturing data, your cloud-based accounts payable (AP) automation solution should eliminate reliance on templates, adapt seamlessly to new formats (so you never need to make the same corrections over and over again), and minimize manual intervention throughout the invoice process. The secret to a successful invoicing system is all about speed and simplicity. You can tackle common payment challenges effectively by speeding things up while keeping accuracy and quality in check. This makes paying suppliers on time a breeze and even gives you access to early payment discounts, which can boost your cash flow.
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You’re spending too much time on manual interventions
We all know by now manual processes in accounts payable are antiquated methods. Yet, many businesses still rely on manual processes or get stuck with too many manual interventions. As many as 87% of finance professionals are responsible for replying to vendor emails, answering an average of 28 emails daily. This translates to an average of six hours a week responding to supplier inquiries about invoices. If you find yourself having to reply to unnecessary questions, reconcile, match, or move invoices through manually more often than you like, your technology might be behind.
Many organizations still rely on rule-based robotic process automation (RPA) systems, which require extensive oversight when invoices deviate from expected formats. For example, an AP team in a manufacturing firm using RPA systems can spend hours rescuing misclassified invoices or manually approving expected tolerances like freight or minor weight differences, draining productivity.
Adopting machine learning-based AP automation can reduce manual interventions by up to 70%. Machine learning systems learn from data patterns, continuously improving and adapting to exceptions without requiring human input.
At Medius, for instance, we tackle this with solutions like Medius Copilot and Supplier Conversations, which help automate those repetitive tasks and handle supplier inquiries, letting AP staff focus on more critical work and reducing the need for manual intervention.
“Medius provides state-of-the-art AI and machine learning that is superior to the system we had in place. It actually grows 'smarter' with every invoice.”
Michael Weare
Project Manager, Granngården
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You feel vulnerable to undetected fraud
Fraud is scary, real, and costs businesses millions of dollars. In accounts payable, dealing with fraud prevention shouldn’t add extra stress. Ask yourself or your team if you feel protected from potential fraud. If the answer is no, look a little deeper at your AP solution fraud detection.
Without solid fraud detection, AP managers risk duplicate payments, unauthorized vendors, or invoices out of order. Twenty percent of finance professionals can't guess how much fraud costs them as they often don't realize it's occurring. Meanwhile, the other 80% estimate an average cost of $133,000 annually.
Real-time fraud detection technology detects unusual patterns and alerts AP teams immediately. You want an AP solution that can empower your team and help them feel confident fraud prevention and detection is not an afterthought – but a proactive part of your process and solution.
Real-world success:
Karl Lagerfeld case study
The team at Karl Lagerfeld has been able to spend less time chasing down approvals, resulting in faster invoice payments. Medius has helped verify invoices and reduce errors, ensuring a consistent and efficient process throughout the company. This has not only saved them time and money but also bolstered their overall risk reduction efforts.
Discover more about how Medius transformed Karl Lagerfeld's accounts payable processes and learn how you can achieve similar results.
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You have to make manual connections between systems because they don’t talk to each other (no suite approach)
If you are still manually reconciling data across procurement, expense, and accounting systems (among others), you are also dealing with data silos and delays. This means you don’t have a suite approach, which can hold you back.
Working without a suite-based approach in accounts payable (AP) technology means inefficient workflows and compliance risks. When AP systems are standalone, you have no visibility into procurement and finance, and processes are misaligned and manual.
What you really need is an all-in-one suite that improves visibility and automates workflows. Think about expense management within an accounts payable (AP) automation suite—it improves efficiency and gives you better control over company spending by managing both direct and employee expenses. This setup makes submitting and approving employee expenses a breeze, providing real-time insights into spending habits and helping you stick to budgets.
Hover over the image below to learn how solutions should work together.
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You’re stifled with limited ERP compatibility and frequent errors
Without managed ERP integrations, your AP team likely grapples with data inconsistencies and duplicative efforts in aligning records, leading to wasted time and increased frustration. You could have one or multiple, like Fluiconnecto, which comprised a group of companies gained by mergers and acquisitions. This led to several different ERP systems being used throughout the organization.
Either way, you’re likely feeling the pain of manual reconciliation that consumes valuable resources and leads to frequent errors that can impact cash flow and decision-making. These challenges can exacerbate operational inefficiencies as your team becomes bogged down in repetitive tasks rather than focusing on strategic initiatives.
Managed ERP connectors make transferring data between accounts payable systems and ERPs easy, helping streamline workflows and boost accuracy. If your system isn’t automating routine tasks like invoice matching and payment approvals, you’re probably missing out on faster processing and a lower risk of human error. Plus, removing manual reconciliation means smoother month-end reporting, giving you timely and accurate financial insights your whole team needs for smart decision-making.
The benefits extend beyond just error reduction; managed ERP integrations foster greater collaboration across departments by providing a single source of truth for financial data.
Embrace cloud-based AP solutions,
like Medius.
If you're experiencing any of these signs and frustrations in your accounts payable processes, it may be time to reevaluate your technology.
Medius can help.
Explore Medius's autonomous, cloud-based AP solutions to discover how they can transform your accounts payable processes. Medius goes beyond automation to make AP autonomous. With intelligent technology to capture, process, and pay your invoices, our AI keeps learning and improving, getting smarter (and making your life easier) with every invoice.
See how it works.
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Get the latest research and insights in accounts payable.
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What makes Medius different?
See for yourself.
