The gift of time: how autonomous accounts payable shifts AP managers focus to strategic initiatives
Time is incredibly valuable. For accounts payable (AP) managers, the burden of invoice processing, reconciliation, and vendor management can take up a lot of time and be overwhelming, leaving little room for strategic thinking and innovation. But with autonomous AP systems backed by powerful artificial intelligence, things are changing for the better. Now, AP managers can free up more time to focus on important initiatives, making them happier and more productive. Who doesn’t want that?
Proof: During an April webinar with SSON, we asked attendees about the main perk of adopting an autonomous AP process. The audience agreed that the key benefit is freeing time for strategic initiatives.
What benefit of autonomous invoice processing is the biggest driver to change for your organization?
Time saved to focus on more strategic initiatives (55%)
Cost savings and/or headcount reduction (18%)
Improved data management and analytics (16%)
Better fraud and risk management (11%)
Better compliance (0%)
The traditional AP burden
How quickly invoices get processed directly impacts a company's cash flow, supplier relationships, and overall financial health. Efficiency is the key, but how do you know if your AP process is efficient? The first thing to evaluate is the amount of manual labor and time your team spends.
Let's face it: traditional AP processes can be a real headache. They're a whirlwind of repetitive tasks like manual data entry, invoice error checking and correcting, and follow-up communication. This not only drains your team's energy but also puts your company's cash flow, supplier relationships, and overall financial health at risk.
What manual AP processes lead to:
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High operational costs: Manual processes require a lot of staff, which means higher labor expenses and the chance of overtime.
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Errors and discrepancies: Mistakes in data entry by people can cause payment errors, require extra time to fix, and risk vendor partnerships.
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Limited strategic focus: With so much transactional work, AP managers have little time for strategic planning or process improvement efforts.
If your AP team is still facing these challenges and stuck with manual labor, there are ways to catch up – quickly and with little risk. Automation is the first word that comes to mind for most people, but automation alone is not enough. There’s more to explore and more benefits and time to recover.
Industry benchmarks - like the ones below - can help organizations determine the potential for improvement.
$8.93
Cost to process a single invoice
30.2%
Invoices processed straight through
10.9 days
Time to process a single invoice
43%
Suppliers electronically enables
22.5%
Invoice exception rate
22.5%
Staff time spent responding to inquiries
Enter autonomous accounts payable
What is autonomous accounts payable? It’s a good question, and it’s often confused with automation. But it is different, and it's giving AP managers more freedom and time back in their day.
Basic AP automation requires human configuration maintenance, while an autonomous solution relies on AI and machine learning to self-manage. An autonomous solution's ability to manage data and invoice processing independently goes beyond what regular automation systems can do.
Two AI technologies are leading the change in AP processes: intelligent document processing (IDP) and OCR. You need a tool that can pull data from paper documents to get the best results, showing how OCR shines with IDP.
“This is the real promise of AI and machine learning within accounts payable — not just streamlining processes but eliminating them. This is where many AP managers and financial leaders want to move with their AP processes.”
Automation has so many benefits, and it will streamline AP tasks like invoice matching, reconciliation, fraud detection, and approvals. When you add machine learning and artificial intelligence, workflows become more intelligent, ditching manual work and reducing errors. Here is where autonomous AP shines:
- Input/capture of invoices
- Matching of invoices to orders
- Classification/coding of invoices
- Verification and approval of invoices
- Payment of invoices
When these processes are more efficient, AP teams have more time to do what is necessary for strategic growth.
IDC’s Accounts Payable Survey discovered that just under 9% of participants operate fully autonomously without any unnecessary human involvement in the AP process. However, respondents are strongly inclined to transition towards autonomy, particularly as they progress through the process.
The strategic shift
Autonomous AP systems give AP managers the freedom to focus on big-picture strategies that bring real value to their organizations. Here are a few examples:
Process optimization: With extra time on hand, AP managers can delve into their accounts payable processes, iron out any kinks, negotiate better deals with vendors, or explore early payment discounts.
Risk management: Autonomous AP systems tackle financial and operational risks, ensuring things are on track and errors are kept to a minimum. AI detects irregularities in invoice processing, flags discrepancies, and consolidates alerts for AP team review, enhancing fraud prevention. This enables AP managers to prioritize risk management strategies and compliance efforts.
Boosting liquidity: AP teams prioritizing an autonomous process can forecast with greater precision and timeliness. Real-time, precise cash forecasting leads to improved planning, adequate liquidity, and working capital management.
Strategic vendor relationships: With automation handling routine tasks, AP managers can nurture those crucial vendor relationships, leading to better deals, on-time payments, exceptional service, and opportunities for collaboration.
Innovation and technology adoption: Freed from manual work, AP managers take the lead in embracing new tech and innovations in finance, driving the digital transformation forward.
As organizations embrace more of these autonomous AP solutions, the role of the AP manager will evolve to emphasize strategy, analysis, and leadership. In this new scenario, the gift of time isn't just a perk—it's a catalyst for growth and success, empowering AP managers to shape the future of their organizations.
Medius is leading the autonomous AP revolution
Medius is pioneering autonomous AP and changing how AP solutions work – helping AP managers and teams get more done faster and creating the focus they need.
“Approvers are very happy. It's a huge time-saver for them - they use their laptops, cell phones, tablets - for access to review and approve any invoice from anywhere. Users get a report in Medius, see the document, who approved it and all supporting documentation. For managers, the tool supports their budget review process. They're ecstatic. And AP isn't constantly fielding questions about why certain things are in their budget.”
Elise Byrd
AP Manager, Sliver Eagle Distributors
Explore Silver Eagle Distributors story of success.
“Medius has made a huge difference to our everyday worklife. It has freed up a lot of time by removing manual tasks. This way the AP team can take on more assignments to support the business without adding additional staff.”
Gisle Weberg
Accounting Manager, Møbelringen
