Accounts payable automation: Streamline invoices and payments

Key takeaways:

• Handling accounts payable (AP) processes manually can be a big drain on your business – it results in slower processing times, more human error, less financial visibility, and increased costs.

• Wherever possible, you should automate accounts payable tasks like invoice digitisation, invoice matching, approval routing, payment processing, and reporting/reconciliation.

• Automating AP processes with Airwallex streamlines how you manage your business spending. You'll save money, get more accurate data, and process payments faster and more reliably.

Tired of the endless tedious tasks and fragmented workflows from manually managing your accounts payable process? You're not alone – millions of businesses worldwide face the same challenge.

Traditional accounts payable processes take up hours of your team’s time, drain resources, and are prone to costly errors. That’s why more businesses are moving away from manual workflows and turning to accounts payable automation instead.

Modern spend management platforms bring AP automation into a single, connected system, helping you take control of payments, improve data accuracy, and reduce unnecessary costs, all while freeing your team to focus on higher-value work.

Challenges of manual accounts payable processes

Manual accounts payable (AP) processes can create bottlenecks, including slow processing, high error rates, limited financial visibility, and higher costs.

The table below gives a quick overview of these challenges and shows how manual processes compare with automated AP solutions:

Slow processing times

Manual payment processes often lead to longer processing times, delaying payments to your suppliers. This can hurt supplier relationships, limit your ability to negotiate better prices, and result in missed early payment discounts.

High error rates

We're all human, and we all make mistakes. Manual AP processes mean higher rates of human error from incorrect data entry and paper-based workflows. Whether it's errors, misinterpretations, or inconsistencies, manual processes leave more room for inaccurate records and payment issues.

Lack of visibility

You need quick access to the right real-time insights to make smart decisions. However, manual AP processes can't give you an immediate view of your cash flow and forecasts: it doesn’t let you see your spending or outstanding payments in real time. This means cash mismanagement and shortfalls you could've avoided.

What is accounts payable automation?

Accounts payable automation uses technology to optimise your accounts payable process, resulting in far less manual work.

First, let’s discuss the concept of accounts payable. Accounts payable is any money that you owe to your suppliers and vendors for the goods and services you've purchased on credit. Some examples of common APs are invoices owed to suppliers and vendors, utility bills, and the cost of raw materials used to create products.

When you buy something on credit, it shows up on your balance sheet as a "current liability". Most businesses start out managing accounts payable manually, which means you’re responsible for a long list of tasks: tracking what you owe, ensuring payments go out on time, processing payments, reconciling invoices, monitoring expenses, and keeping accurate records for tax and reporting purposes.

As your business grows, this manual approach quickly becomes harder to manage. That’s where accounts payable automation comes in, replacing manual steps with a faster, more accurate workflow.

To put AP automation into practice, you typically use dedicated AP automation software. In the next sections, we’ll discuss the benefits of AP automation software and walk through exactly how it works.

Benefits of accounts payable automation

Automating your accounts payable processes means quicker payment processing times, better cost savings, and a clearer view of your finances. 

Quicker payment processing times

With AP automation, you'll complete tasks like invoice receipt, data entry, approval routing, and payment execution in minutes. Solutions like Airwallex Bill Pay integrate with a Business Account, so you can transfer funds from your account and have payees receive their funds in as little as three days from the date of transfer.

Lower costs and higher efficiency 

By automating routine tasks, you can move your team away from repetitive work and onto things that‌ add more value. You'll also save on headcount since you need fewer people for repetitive tasks.

More accurate data

Automation reduces the mistakes that often happen with manual data entry, giving you a clear, accurate view of your finances at any time. For example, Bill Pay can automatically match payments to invoices, and it integrates with accounting software like Xero and Quickbooks, so you don’t have to spend time manually reconciling records. 

Better financial visibility

Integrating your AP system with your business account gives you a real-time view of not just accounts payable, but also receivables and bank transfers. This gives you better control over your finances and helps you make more informed decisions.

For finance leaders, this kind of visibility turns AP from a back-office chore into a source of insight. With a clear picture of liabilities and spending patterns, you can manage working capital more effectively, negotiate better terms with suppliers, and plan with greater confidence.

In Singapore, home and living retailer HipVan saw these benefits first-hand. As the business scaled, its finance team was spending hours each week jumping between Xero, bank portals, and manual spreadsheets just to pay suppliers and reconcile accounts. 

After centralising payables and spend in Airwallex, HipVan now tracks every invoice, payment, and expense in real time on a single platform and has cut admin time by around 50% – freeing the team to focus on cash‑flow planning and supplier strategy instead of manual workflows.

How does accounts payable automation work?

Accounts payable automation helps remove manual bottlenecks and speed up your workflow. Here’s how it works:

Step 1: Capture and digitise invoices 

The first step is getting your invoices into the system. You can either upload digital invoices or scan paper ones. The AP software then automatically extracts the key details, such as the supplier name, invoice amount, and due date, using Optical Character Recognition (OCR). 

Step 2: Automated invoice matching

Once invoices are captured, the system automatically compares them against purchase orders and delivery receipts. This ensures everything lines up correctly and flags any discrepancies. You don’t have to manually check each invoice, which saves time and prevents mistakes before they reach the approval stage.

Step 3: Approval workflow 

From here, invoices move through an approval workflow. You can customise the process based on your business needs – for example, setting multi-level approvals depending on the invoice amount, currency, or department. The system also sends notifications to approvers, keeping everyone on track. This is especially helpful if you work with both local and international suppliers.

Step 4: Payment processing

After approval, the AP system handles payments automatically. You just confirm or schedule them, and the system will ensure they go out accurately and on time. If you’re paying in foreign currencies, using a multi-currency business account like Airwallex can help you save on forex and cross-border fees, which is useful for importers or businesses working with overseas suppliers.

Step 5: Reporting

Finally, the system takes care of reconciliation and reporting. Transactions are automatically matched with your bank statements, which increases accuracy and making GST and year-end tax reporting simpler. You also get real-time insights into spending patterns, supplier payments, and potential cost-saving opportunities, giving you a complete view of your finances.

Automate and simplify your accounts payable process with Airwallex Bill Pay

We built Bill Pay to help businesses like yours cut out the inefficiencies, so you can spend less time on tedious, manual accounting tasks and more time building your business and serving your customers.

With Airwallex Bill Pay, you eliminate manual entry by automating every step – from pulling data from your invoices, to approving and sending global payments. That means less admin, fewer errors and more visibility across your finance stack. To streamline the process even more, you can also set rules for multi-layer approvals, so that every transaction is reviewed and follows your policies.

On top of that, Bill Pay integrates directly with tools like Xero, QuickBooks, and NetSuite, so you can sync your accounting system, import bills, and automatically push payments back into your accounting software, keeping your records up-to-date.

Frequently asked questions (FAQs)

What is the ROI of AP automation?

The ROI of AP automation comes from time and cost savings, fewer errors, better cash flow, and captured early payment discounts. To estimate it yourself, add up your current AP costs (staff time, errors, late fees), subtract the cost of automation software, then divide the savings by the automation cost and multiply by 100 to get a simple ROI percentage. Even a rough calculation can show how automating AP quickly pays for itself.

How much does AP automation cost?

AP automation costs vary: you’ll need to factor in software fees, implementation, training, integrations, and ongoing support. Pricing models typically range from per‑user or per‑transaction fees to flat monthly rates, with additional costs for consulting and data migration on more complex setups.

With Airwallex, Bill Pay is included as part of your overall account rather than sold as a separate AP tool. You can start on the Explore plan at S$0/month and use Bill Pay alongside other features, paying only usage‑based fees (such as FX, transfers and active spend users) instead of adding another standalone AP subscription.

Is AP automation suitable for small businesses?

Yes, businesses of all sizes benefit from AP automation, especially small businesses with stretched teams. AP automation streamlines your invoice processing, reduces manual data entry errors, and frees up your busy team so they can focus on more important tasks.

What security measures are in place with AP automation software?

AP automation software generally protects your financial data with measures like multi-factor authentication, encrypted data transmission, and secure user access controls. Many reputable providers also undergo regular audits and follow standards such as SOC 2 or GDPR-aligned practices to ensure safety. With Airwallex, these protections are built in: the platform has SOC 2 Type II certification¹, uses strong encryption and 2FA, and undergoes regular audits to help keep your financial data secure while supporting privacy and regulatory obligations.

Sources:

1. https://security.airwallex.com/

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.