18 Ways to Streamline the Accounts Payable Process Without Using AP Automation

18 Ways to Streamline Accounts Payable Without AP Automation

18 Ways to Streamline the Accounts Payable Process Without Using AP Automation

The accounts payable (AP) process is essential to maintaining smooth business operations, but inefficiencies can result in delayed payments, strained supplier relationships, and increased operational costs. While AP automation tools offer significant advantages, many businesses can still streamline their AP process without relying on automation software. By implementing manual methods, optimizing workflows, and adopting best practices, organizations can improve efficiency, reduce errors, and save time in their accounts payable function.

Here are 18 ways to streamline your AP process without the need for automation:

1. Centralize Invoice Management

One of the most effective ways to improve the efficiency of your accounts payable process is to centralize invoice management. In many organizations, invoices are often sent to different departments, making it difficult to track and manage payments effectively.

By establishing a single point of contact or a central system for receiving and storing invoices, you can ensure that they are reviewed, approved, and paid in a timely manner. This centralized approach also reduces the risk of duplicate payments and errors, improving overall accuracy.

2. Encourage Vendors to Email Invoices

If your company deals with a high volume of suppliers, consider allowing suppliers to directly submit their invoices via email. While this is a form of digitization, it doesn’t necessarily require complex automation systems. This will significantly cut down on the amount of mail handling and paper invoices that require organizing and filing. A simple, centralized email address for submitting invoices ensures that all invoices are received and not lost.

3. Standardize Invoice Formats and Approval Processes

Establishing clear guidelines and standardized formats for invoices is essential for reducing processing time. Encourage your suppliers to use a uniform invoice format that includes all necessary details, such as the purchase order number, correct billing information, and clear payment terms. Standardized invoices are much easier to process quickly and accurately.

Additionally, implementing a structured approval process, where each invoice is checked by the appropriate department before payment, can help streamline operations. This reduces bottlenecks and ensures that invoices are processed according to company policies.

4. Implement a Payment Schedule

Setting up a standardized payment schedule can help streamline the accounts payable process. By grouping similar payment dates and sticking to a pre-determined payment cycle, your team can allocate resources efficiently, avoid rushing to meet last-minute deadlines, and ensure that suppliers are paid on time.

A regular schedule allows your team to plan and manage cash flow better, reducing the likelihood of missed or delayed payments. It also helps to negotiate better terms with suppliers, such as early payment discounts or extended payment deadlines.

5. Negotiate Payment Terms with Suppliers

Negotiate favorable payment terms with your suppliers to improve cash flow management. By extending payment terms, you can free up cash for other business needs. Conversely, negotiating early payment discounts (e.g., a 2% discount for paying within 10 days) can reduce costs and provide savings over time.

Keep an open line of communication with your suppliers, letting them know when payments will be made and asking if there are ways to optimize payment terms. With clear agreements in place, the AP team can work more efficiently and avoid unnecessary delays.

6. Use Purchase Orders (POs) to Improve Invoice Accuracy

Implementing a robust purchase order system helps prevent discrepancies between what was ordered and what was invoiced. By requiring all purchases to be matched with a purchase order (PO), you create a more transparent and organized process. When suppliers send invoices that are linked to purchase orders, it’s easier for your team to verify amounts, quantities, and pricing, reducing the chances of overpayment or fraud.

Ensure that all invoices are cross-referenced with the corresponding PO and receipt of goods or services to verify the accuracy before approval and payment. This practice improves efficiency and reduces time spent on invoice disputes.

7. Implement a "2- or 3-Way Match" System

A 2- or 3-way match process is an important control measure to ensure that the payment amounts are accurate. A 2-way match involves comparing the invoice to the purchase order (PO), whereas a 3-way match adds a verification step by matching the invoice with the purchase order and the goods receipt note (GRN).

This matching process reduces errors caused by discrepancies between what was ordered, received, and billed. It ensures that invoices are legitimate and properly reflect the terms agreed upon, thereby reducing mistakes and payment delays.

8. Create a Payment Approval Matrix

Establishing a payment approval matrix helps define the hierarchy of authority for invoice approvals. This ensures that invoices are reviewed by the correct personnel, reducing the chances of unauthorized or duplicate payments. The matrix can be set up according to payment size, department, or type of invoice.

By creating predefined approval workflows, you can ensure that payments are processed quickly and that there are no bottlenecks or confusion over who should approve which payments. Having clearly defined approval levels also reduces the risk of fraud or payment mistakes.

9. Adopt a Payment Calendar

Create a Payment Schedule: Develop a payment calendar that outlines all payment due dates. This helps you manage cash flow, avoid late payments, and keep track of upcoming bills without missing any deadlines. Batch Payments: Where possible, group payments by due date or vendor to reduce the number of individual transactions you need to process.

10. Set Up Vendor Communication Reminders

Regular communication with suppliers is crucial for keeping the AP process efficient. Setting up regular reminders to communicate with your vendors—especially those with long payment terms or frequent invoices—can help prevent misunderstandings and ensure timely payments.

For example, you can send reminders about upcoming payments or verify payment terms. In turn, this helps to avoid late fees, foster strong supplier relationships, and create a more predictable cash flow cycle.

11. Use Early Payment Discounts Strategically

Many suppliers offer early payment discounts, such as a 2% discount for payments made within 10 days. By actively taking advantage of these discounts, you can reduce your overall expenses. Even without automation, you can streamline the AP process by prioritizing these early payments and paying invoices as soon as possible to benefit from the discount.

Having a clear strategy for which invoices to pay early can help you balance savings with cash flow needs. You can establish a priority payment list based on the payment terms offered by your suppliers, ensuring that discounts are maximized without straining liquidity.

12. Outsource AP Functions or Use a Third-Party Provider

For businesses that struggle with a high volume of invoices or don’t have the capacity to dedicate in-house resources to AP tasks, outsourcing some of the AP functions can improve efficiency. By engaging a third-party provider or outsourcing AP tasks such as invoice processing, reconciliation, or payment management, businesses can ensure that invoices are handled promptly without the need for in-house automation.

Outsourcing can be a cost-effective solution, especially if you don't have the volume to justify the use of AP automation software but still want to improve the process.

13. Encourage E-Invoicing with Suppliers

Encouraging suppliers to send invoices electronically (in a standard format like PDF or EDI) instead of paper-based invoices can significantly reduce the time spent manually entering data. E-invoicing is faster and eliminates the risk of data entry errors that often occur with paper invoices.

Having digital invoices can also simplify document storage, enabling quicker retrieval and reducing reliance on paper files. By shifting to e-invoicing with key suppliers, you can streamline the processing of incoming invoices, even without automation tools.

14. Consolidate Payments into Fewer Batches

Rather than processing payments on an invoice-by-invoice basis, consider consolidating payments into fewer batches. By grouping similar invoices for payment (for example, paying all invoices due within a certain week), you can streamline the process and reduce the time spent on preparing and processing checks or electronic transfers.

This reduces administrative effort, especially in businesses with multiple small payments. You can also work with suppliers to establish clear payment schedules to help you batch payments more effectively.

15. Consider Leveraging Electronic Payment Methods

Instead of relying on traditional paper checks, which can be time-consuming to prepare, mail, and track, consider shifting to electronic payments such as ACH transfers, wire transfers, or virtual credit cards. These payment methods can help to reduce manual work and improve payment processing time.

Using electronic payments ensures that your transactions are processed faster, with less risk of loss, fraud, or errors. This is particularly important for businesses dealing with a high volume of invoices or international payments.

16. Establish Clear Internal Policies and Deadlines

Clear internal policies related to invoice processing timelines, approval protocols, and payment deadlines can greatly improve the AP workflow. Setting a goal for when invoices should be entered, approved, and paid (e.g., within 24 or 48 hours of receipt) helps ensure that no invoices are left sitting for long periods. Establishing clear deadlines also keeps the process organized, preventing bottlenecks or delays at any point in the workflow.

Setting such policies also creates accountability within the AP team and ensures that everyone is aligned with the same goals for payment efficiency.

17. Perform Regular Audits

Regular audits of your accounts payable process can uncover inefficiencies, prevent errors, and identify areas for improvement. By conducting periodic checks on invoice accuracy, payment timeliness, and vendor relations, you can identify any recurring issues that might require attention.

Auditing also ensures that payments comply with company policies, reducing the risk of fraud and overpayments. It provides a proactive approach to managing the AP process rather than waiting for problems to arise.

18. Train Your Team and Standardize Procedures

Ensuring that your accounts payable team is well-trained and familiar with the company’s AP policies and procedures is key to a smooth process. Standardize workflows and provide team members with clear instructions on how to handle invoices, approvals, and payments. This minimizes confusion and errors, ultimately reducing delays in processing.

Training can also extend to cross-training staff members so that they can cover for one another during absences, ensuring that the AP function runs smoothly even when employees are unavailable.

Conclusion

Streamlining the accounts payable process without automation is entirely achievable with the right set of strategies. From creating clear policies and payment schedules to improving communication with vendors and consolidating payments, there are many methods that can reduce inefficiency and enhance accuracy in the AP department. By focusing on process optimization, improving organization, and promoting consistency, businesses can reduce their reliance on manual work and improve cash flow management, all without the need for complex AP automation systems.

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Streamlining Accounts Payable WITHOUT Automation: Creative, Manual-Free Strategies

By Richard Pigott • June 19, 2025

Creative, Manual-Free Strategies In today’s hyper-efficient business landscape, automation often steals the spotlight when it comes to streamlining Accounts Payable (AP). But what if you're not ready for automation—or prefer to avoid the cost, complexity, or integration headaches that come with implementing an AP workflow system? There are still plenty of non-automated ways to dramatically improve AP efficiency. Many of these methods are process-based, culture-driven, or leverage existing tools in creative ways. Below, we explore smart, often-overlooked strategies that reduce manual work without a single line of code or automation software. 1. Centralize and Standardize All AP Policies and Procedures Why it matters: Inconsistent invoice handling is a key source of manual work. What to do: Create a comprehensive AP manual with step-by-step instructions for handling invoices, approvals, disputes, vendor queries, and accruals. Ensure all stakeholders (AP clerks, department heads, vendors) are trained on these standards. Mandate standard formats for POs and invoices, with clearly defined required fields. ✅ Pro Tip: Use visual SOPs (standard operating procedures) and flowcharts to make procedures easier to follow—no software needed. 2. Shift the Burden to Vendors — Implement a “Vendor Self-Service” Mindset Why it matters: Many AP inefficiencies stem from missing or incorrect vendor data. What to do: Require vendors to submit invoices in a standardized format (e.g., PDF with PO in subject line). Mandate that vendors populate a standardized invoice cover sheet, downloadable from your website or included in onboarding kits. Set up a dedicated email address and strict submission guidelines to reduce email-based clutter. ✅ Out-of-the-box idea: Create a “Vendor Onboarding Kit” with instructions, sample invoice formats, W-9 forms, and FAQ. This shifts data entry and compliance upstream. 3. Eliminate Paper at the Source (Without Automation) Why it matters: Paper introduces delays, errors, and storage headaches. What to do: Close physical mailboxes for AP. Ask vendors to stop mailing invoices altogether. Use scanners and shared drives (like Google Drive or SharePoint) to store invoices. Ask internal stakeholders to submit invoice images from mobile phones when traveling or in the field. ✅ Out-of-the-box idea: Empower the front desk or mailroom to reject paper invoices on arrival and direct vendors to the proper digital channels. 4. Create a “PO-First” Culture Why it matters: Non-PO invoices require more review and often bypass pre-approval processes. What to do: Make POs mandatory for all purchases over a low threshold (e.g., $200). Publish a company-wide “No PO, No Pay” policy—and enforce it rigorously. Educate department heads and project managers on how and when to request POs. ✅ Bonus: Use Excel-based PO logs with pre-defined templates. No fancy software needed—just consistency. 5. Adopt Calendar-Driven Invoice Processing Cycles Why it matters: Processing invoices on a rolling basis leads to chaos. What to do: Establish weekly invoice intake days (e.g., Tuesday/Thursday only). Allocate specific days of the month for approvals, accruals, and vendor payments. Let vendors know your “invoice cut-off days” and stick to them. ✅ Out-of-the-box idea: Set up a shared team calendar (Google, Outlook) to visually track invoice cycles and deadlines. 6. Assign “Invoice Champions” by Department Why it matters: Chasing down approvals and missing GL codes is a huge time sink. What to do: Designate an Invoice Champion in every department who owns responsibility for coding and approving invoices. Provide them with GL code cheat sheets, training, and expectations around turnaround time. Use internal SLA (service level agreement) metrics to encourage fast action. ✅ Clever twist: Reward champions with shout-outs or small bonuses for timely approvals and clean submissions. 7. Use Color-Coded Physical Tools for In-Office AP Why it matters: Visual systems reduce the need for constant verbal clarification. What to do: Use colored folders, stamps, or bins to indicate invoice status: needs approval, ready to pay, disputed, etc. Place folders in designated locations by department or approver. Rotate colors monthly to track invoice age. ✅ Old-school, but effective: Implement a “red folder” system to immediately flag urgent invoices or disputes. 8. Build Smart Templates in Excel or Google Sheets Why it matters: Manual entry errors eat time and cause payment delays. What to do: Create pre-formatted invoice registers with dropdowns for GL codes, departments, and vendors. Use data validation and conditional formatting to highlight missing fields or errors. Maintain a vendor master file with up-to-date banking and contact info. ✅ Out-of-the-box idea: Use Google Forms to collect invoice data and auto-fill a spreadsheet for processing. 9. Host Monthly “Invoice Review Huddles” Why it matters: One-time fixes don’t solve systemic inefficiencies. What to do: Hold short monthly meetings with AP, procurement, and department heads to review: Top 10 slowest invoices Recurring vendor issues Approval bottlenecks Use these to adjust policies, retrain teams, or escalate chronic issues. ✅ Culture shift: Treat AP like a business partner, not a back-office task. 10. Tame Email Chaos with Smart Labeling and Filters Why it matters: Invoices get lost in crowded inboxes. What to do: Create inbox rules to label, sort, and auto-archive AP emails. Designate an AP triage person who checks email twice daily and logs incoming invoices to a master sheet. Avoid forwarding—stick to centralized viewing folders. ✅ Bonus: Use naming conventions like “INV_[Vendor]_[Date]” to make searching painless. Final Thoughts Automation isn’t the only path to AP efficiency. With a strategic mindset and creative thinking, AP departments can eliminate manual tasks, improve accuracy, and even elevate their internal reputation—all without investing in software. The real key is structure, discipline, and shifting effort to where it adds the most value: early in the process, not at the point of payment.

Accounts Payable Fraud Prevention Vision360

Accounts Payable: The Open Door for Cyberattacks

By Richard Pigott • June 19, 2025

In today's fast-paced, digitized business environment, few departments are as vulnerable to cyber threats as Accounts Payable (AP). Ironically, the very processes designed to keep a business running—paying vendors, processing invoices, handling reimbursements—also serve as the perfect entry points for cybercriminals. The heavy reliance on human intervention, outdated email workflows, and weak verification protocols create a fertile ground for phishing, invoice fraud, and ransomware attacks. Why AP is a Prime Target Accounts Payable teams typically deal with hundreds, sometimes thousands, of emails per month. These emails often contain attachments—usually PDF invoices—or hyperlinks to download documents or confirm banking details. This routine, repetitive engagement with external content makes AP staff prime targets for social engineering. Consider the daily tasks of a typical AP clerk: Opening emails from vendors. Downloading or previewing attached invoices (often in PDF format). Clicking on links to verify details or approve transactions. Processing changes to vendor banking details with minimal validation. All these actions can be weaponized by attackers. A single click on a malicious link or opening a booby-trapped invoice attachment is all it takes to compromise an entire network. Real-World Consequences of AP Cyberattacks Unfortunately, this isn't just a theoretical risk. Some high-profile examples underscore the staggering financial and reputational cost of cybercrime targeting AP functions: Scoular Company (2014): This commodities trader lost $17.2 million when a finance employee was tricked by a Business Email Compromise (BEC) scam, believing they were transferring funds to a legitimate Chinese bank for a corporate acquisition. Ubiquiti Networks (2015): The company fell victim to an AP-related phishing attack and wired over $46.7 million to fraudsters posing as legitimate vendors. Toyota Boshoku (2019): A subsidiary of Toyota lost $37 million due to an AP-related email scam where attackers posed as business partners requesting a change in bank account information. The City of Baltimore (2025): A cybercriminal used accounts payable to gain access to more than $1.5 million in payments intended for a city vendor. In addition to direct financial losses, organizations also face: Costly forensic investigations to trace breaches. Downtime and disruption to business operations. Reputational damage, particularly if vendor or employee data is leaked. Compliance violations, especially with data privacy regulations such as GDPR or HIPAA. Human Error: The Unreliable Guard At the core of many AP-related breaches is human error. Even the most well-trained employees can be deceived by increasingly sophisticated phishing attempts. And traditional "awareness training" is no match for cleverly designed attacks that mimic internal communication styles or spoof known vendors. This is where automation becomes not just beneficial, but essential. Securing AP with Vision360 Enterprise Accounts Payable Automation Vision360 Enterprise offers a powerful solution to mitigate cyber threats in the Accounts Payable process. By removing the dependency on manual processing and email-driven workflows, Vision360 helps close the doors that cybercriminals frequently exploit. Here’s how Vision360 enhances AP security: Automated Invoice Capture and Vendor Validation Invoices are ingested directly into the system through secure channels, bypassing the need for staff to open email attachments or click unknown links. Role-Based Access and Approval Routing Payments and approvals follow a structured, rule-based workflow. This eliminates unauthorized changes or approvals and reduces the risk of impersonation. Audit Trails and Visibility Every step in the process is logged and tracked, creating a full audit trail. This not only strengthens internal controls but also simplifies investigations in the event of suspicious activity. Integration with ERP and Vendor Master Data Vision360 synchronizes with existing systems, ensuring all data is up-to-date and minimizing opportunities for fraudulent entries. Conclusion The Accounts Payable department is no longer just a financial function—it’s a cybersecurity risk vector. With phishing and invoice fraud on the rise, businesses can no longer afford to rely on manual processes and email-based workflows that leave them exposed. Vision360 Enterprise offers a future-proof way to secure AP operations. By enforcing automated controls and minimizing human intervention in critical points of vulnerability, it not only streamlines invoice processing but also fortifies your organization against fraud and cybercrime. Now more than ever, securing your AP process isn’t optional—it’s essential.