Accounts payable management means tracking, approving, and paying your company’s outstanding invoices. It’s a key part of finance. Done right, it protects your cash flow and supplier relationships. Done wrong? It could cost you—literally.
Table of Contents
In this guide, you’ll learn why AP automation is a must. We cover the essentials of AP management—best practices, key steps, automation, and how Zahara simplifies the entire workflow. Spoiler: we make invoice pain vanish faster than petty cash on pizza Friday.
Understanding Accounts Payable Management
AP management is about handling what your business owes. It includes:
- Managing invoices
- Using purchase orders
- Controlling payment schedules
- Setting clear approval steps
The goal? Pay the right amounts at the right time, and keep full records.
Think of it like housekeeping—but for your finances. Just like laundry, if you ignore it, things pile up fast.
A good AP process helps you:
- Avoid overpaying or paying twice (a real double whammy)
- Stay compliant
- Protect working capital
Without structure, AP becomes chaotic. Bills get missed. Supplier trust suffers. Cue dramatic accountant sigh.
Example
A construction firm works with multiple suppliers. Late invoice approvals delay projects. Automating AP speeds things up, avoids penalties, and improves supplier loyalty. Everyone’s happy—especially the accounts team.
Why Good AP Management Matters
1. Cash Flow Control
Knowing what’s due and when helps you stay in control. It’s the financial equivalent of checking the weather before a picnic.
2. Avoiding Fees
Late payments lead to charges and poor credit. Timely processing stops that. Your suppliers (and your stress levels) will thank you.
3. Supplier Confidence
Paying on time builds trust. It can lead to better terms. Be the customer everyone wants on their books.
4. Early Payment Discounts
Some suppliers offer discounts. A fast AP process helps you qualify. And let’s face it—who doesn’t love a good bargain?
5. Audit-Ready Records
Clean, accurate records make audits quick and painless. Well, as painless as audits can be.
6. Stronger Internal Controls
Approvals, permissions, and audit logs reduce fraud and errors. No more mystery payments to ‘Office Snacks Ltd.’
Common AP Challenges
Without automation, finance teams face:
- Duplicate or missed payments (the financial version of déjà vu)
- Misplaced invoices
- Slow approvals
- Poor visibility
These cause delays, penalties, and frustration. And sometimes, coffee-fuelled rants.
Insight
Levvel Research found manual AP teams face 55% more invoice errors and 30% longer approval times. That’s a lot of time spent chasing paperwork instead of performance; it equals less time hitting balls on the driving range).
Best Practices
1. Set a Clear Workflow
Each invoice should go through:
- Receipt
- Matching
- Approval
- Payment
- Record entry
Skipping steps here is like trying to bake a cake without flour. Don’t do it.
2. Centralise Documents
Keep invoices, POs, and receipts in one digital system. That shoebox of receipts from 2021? Not the vibe.
3. Automate Approvals
Route invoices automatically based on the rules you define. Think of it as setting up your own personal finance concierge.
4. Use 3-Way Matching
Match invoices to POs and delivery receipts before approval. Zahara’s PO software handles this for you. Three checks. No drama.
5. Track Key Metrics
Monitor:
- DPO (Days Payable Outstanding)
- Cost per invoice
- Early payment rate
- Error rate
Because you can’t fix what you don’t measure.
Core Procedures
Invoice Receipt
- Invoices come in via email or portal
- Zahara uses OCR to extract data automatically (like magic, but legal)
Review
- Finance checks for accuracy and flags any issues—like that one time you got invoiced for 10,000 staples.
Matching & Approval
- Use 2-way or 3-way matching
- Route to the right approver (not Steve from HR)
Payment
- Pay according to terms
- Track discounts like a savvy shopper
Record
- Log everything in the general ledger—your finance team’s happy place
Internal Checks
- Maintain audit trails
- Reconcile vendor statements regularly (with fewer headaches)
Automating the AP Process
Manual AP is slow and risky. Automating the accounts payable process fixes that. It’s like switching from a typewriter to a MacBook—just with fewer coffee stains.
Zahara’s Tools:
- Invoice capture
- Approval routing
- 3-way match
- Digital records
- Audit logs (aka the paper trail, without the paper)
Explore Zahara’s AP Automation
Want to know the cost of automation? Zahara is priced for growing teams—and shrinking stress.
Choosing the Right Software
Key Features
- Automated approvals
- PO management
- Supplier onboarding
- Permissions
- Reporting
- Integrations (e.g., QuickBooks)
Why Zahara?
Zahara is built for service-based teams. It’s ideal if you need control, tracking, and a full audit trail. We offer:
- Flexible workflows
- Easy setup
- UK support that speaks fluent finance
Compare options in our guide to the best AP software.
Streamlining AP for Growth
AP gets harder as you grow. Automation keeps things simple:
- Cuts admin
- Delays hiring
- Gives real-time visibility
Tip
Start with invoice capture. Add approvals next. Then, automate payments. It’s like levelling up—without the boss battle.
With Zahara, you scale without chaos. And without adding “invoice chaser” to your LinkedIn title.
Helpful AP Stats
| Insight | Statistic | Source |
|---|---|---|
| Manual invoice cost | £8–£15 | APQC |
| Still using paper invoices | 45% | Ardent Partners |
| Manual late payments | 35% | Levvel |
| Manual error rate | 20–30% | IOFM |
| Time saved with automation | 70% faster | PayStream |
It automates invoice capture, approvals, and payments. So you can stop playing email ping-pong.
It compares the invoice, PO, and delivery receipt before approval. A triple-check that keeps things tight.
It cuts admin, speeds up processing, and reduces mistakes. Win-win-win.
It cuts admin, speeds up processing, and reduces mistakes. Win-win-win.
Yes. Faster processing means fewer late fees and less headcount. And fewer snacks to buy for new hires.
Yes. Our onboarding team configures everything to suit you. It’s AP—but made to order.
Conclusion
AP management is more than just paying bills. It’s about control, visibility, and saving time.
With Zahara, you can:
- Eliminate manual tasks
- Pay vendors on time
- Track every approval
- Scale without stress (or spreadsheets)
Let us guide you through Zahara’s AP Automation
30 min demoYou might also like to read another article from Accounts Payable:
- 💼 Kickstart your AP journey – New Accounts Payable Starter Checklist Congratulations on your new accounts payable starter role! This guide walks you through transitioning from manual processes to a streamlined, automated system, ensuring efficiency and accuracy in your new position.
- 🔄 Get in the flow – AP Automation for Seamless Financial Management Discover how Accounts Payable Automation (AP Automation) revolutionises invoice processing and financial workflows, enhancing efficiency and reducing manual errors in your accounting operations.
- 🧾 Make your workflow work for you – Improve Your Accounts Payable Workflow Managing accounts payable is critical for every finance team. Learn strategies to streamline your AP workflow, ensuring timely and accurate supplier payments while gaining valuable insights into cash flow management.
- 🛠️ Automate to dominate – Accounts Payable Workflow Automation: Getting Started Explore the benefits and steps to implement accounts payable workflow automation, reducing manual tasks, minimizing errors, and enhancing overall financial efficiency.
- 🚀 Pay it forward faster – Accounts Payable Processing: The Ultimate Guide on Automating Delve into the essentials of accounts payable processing and discover how automation can lead to significant cost savings, improved accuracy, and streamlined financial operations.
