Unlocking Best-in-Class AP Performance: Practical Accounts Payable Automation Strategies, Metrics, and Solutions

Overview

Accounts payable (AP) is no longer just a back-office function—it’s a strategic powerhouse that can drive efficiency, cost reduction, and business agility. Forward-thinking organizations are shifting their focus from broad trends and AI hype to practical, actionable steps that deliver measurable results.

In this blog, we’ll explore how accounts payable automation, benchmarking, and targeted solutions like Concur Invoice can help your team achieve best-in-class AP performance. We’ll answer the most pressing questions AP leaders are asking and provide a roadmap for transformation.

Which AP Metrics Matter Most for Benchmarking and Improving Performance?

To unlock best-in-class AP performance, you need to know where you stand—and where you want to go. The most important AP metrics to track include:

• Invoice processing cycle time: How long does it take to process a single invoice from receipt to payment?
• Cost per invoice: What is the total cost (including labor, technology, and overhead) to process each invoice?
• Exception rate: What percentage of invoices require manual intervention due to errors, missing data, or approval bottlenecks?
• Touchless processing rate: How many invoices are processed straight-through without human touch?
• Staff time spent on supplier inquiries: Are your team members spending too much time answering questions instead of focusing on strategic tasks?

Why Executives Are Prioritizing Accounts Payable Metrics for Strategic Growth

Executives are increasingly recognizing accounts payable as a critical area for investment and a key driver of strategic value. By setting clear AP performance improvement targets and tracking the metrics that matter, AP teams can move from reactive to proactive, transforming their role within the organization.

Accounts Payable Metrics that Matter

For a deeper dive into the metrics that matter most for AP teams, download the full report here.

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What Does “Best-in-Class” Accounts Payable Automation Look Like?

Best-in-class AP automation is defined by speed, accuracy, and minimal manual intervention. Leading organizations process invoices faster, at lower cost, and with fewer exceptions than their peers. According to industry benchmarks, top performers achieve:

• Invoice processing time of 3.1 days
• Cost per invoice of $2.78
• Exception rate of 9%
• Touchless invoice processing for nearly half (49.2%) of all invoices
• 13.4% of time (5.36 hours weekly) spent answering inquiries

Benchmarking Your Accounts Payable Performance

Organizations that invest in accounts payable automation, data-driven decisions, and continuous improvement achieve faster, more accurate, and cost-effective accounts payable results. Regularly benchmarking your AP performance against industry standards helps ensure ongoing progress toward operational excellence.

Benchmark your accounts payable performance

Learn the key functionalities to look for when choosing travel and expense management software.

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How Can Organizations Reduce Invoice Processing Costs and Cycle Times?

Cost reduction and faster invoice processing starts with automation. Manual processes are slow, error-prone, and expensive. By automating key steps—such as data capture, approval routing, and payment execution—organizations can:

• Eliminate repetitive tasks and free up staff for higher-value work
• Minimize errors and exceptions
• Accelerate approvals and payments
• Improve cash flow management

Streamlining AP Workflows: The Role of Automation and Integration

Solutions like Concur Invoice offer end-to-end AP automation, integrating with ERP and accounting systems to streamline workflows. Automated notifications, two- and three-way matching, and real-time reporting all contribute to faster, more efficient AP operations.

What Are the Practical Steps to Move from Manual to Touchless AP Processes?

Transitioning to touchless AP doesn’t happen overnight. Here’s a practical roadmap:

1. Assess your current process: Use AP benchmarking tools and self-assessments to identify manual bottlenecks and exceptions.
2. Set clear goals: Define what “touchless” means for your organization and set measurable targets for cycle time, cost reduction, and exception rate.
3. Invest in automation technology: Choose solutions that offer robust data capture, automated routing, and seamless integration with your existing systems.
4. Train your team: Ensure staff understand new workflows and are equipped to manage exceptions and strategic tasks.
5. Monitor and optimize: Regularly review AP performance metrics and adjust processes to drive continuous improvement.

[H3] From Manual to Touchless: Your Roadmap to AP Transformation

Traditionally, AP is one of the last finance functions to be automated, but that is changing as organizations pursue efficiency, productivity, and every edge they can. By following the steps outlined above, organizations can move closer to best-in-class accounts payable and realize significant savings and efficiency gains.

Is Your Current AP Process Truly Automated?

Learn more about what truly automated AP looks like and how to get there in this brochure.

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What Are the Benefits of Using Concur Invoice for AP Automation?

Concur Invoice stands out as a leading solution for accounts payable automation. Here are five key benefits:

1. Increase accuracy: AI and machine learning help ensure data is captured correctly, reducing errors and reconciliation time.
2. Gain greater visibility into cash flow: Real-time reporting and holistic dashboards help financial leaders manage spend and forecast more effectively.
3. Streamline workflows: Automated matching, approval routing, and integration with ERP systems shorten invoice processing times and reduce manual effort.
4. Simplify reporting and audits: Pre-built and customizable reports, along with automated audit trails, enhance compliance and accountability.
5. Enable scalability and growth: Flexible integrations and user-friendly tools support business expansion and resource optimization.

Real Results: How Concur Invoice Delivers Measurable AP Improvements

Automate invoice management with Concur Invoice to digitize your end-to-end processes, gain clearer visibility to manage cash flow more effectively, and access your accounts payable processes on the go. Organizations using Concur Invoice report up to 35% more invoices processed per month, 20% cost reduction, and a significant increase in policy compliance.

Five key benefits of Concur Invoice

Learn more about the 5 key benefits of Concur Invoice

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How Can AP Teams Leverage Data and Reporting to Drive Strategic Decisions?

Data is the foundation of strategic, best-in-class AP management. Automated solutions provide real-time insights into spend, cash flow, and supplier performance. By leveraging dashboards and analytics, AP teams can:

• Identify trends and opportunities for cost savings
• Monitor compliance and mitigate fraud risk
• Support better supplier negotiations and relationships
• Align AP goals with broader business objectives

Turning AP Data into Actionable Insights for Financial Leadership

Regular data reviews empower AP leaders to make informed decisions that optimize operational efficiency and financial performance. By consistently analyzing trends and key metrics, leaders can clearly demonstrate the strategic value that AP brings to the broader organization.

Accounts Payable Reporting: Achieve Financial Transparency with SAP Concur

Learn more about AP reporting best practices in this tip sheet.

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What Features Should You Look for in an AP Automation Platform?

Choosing the right platform helps ensure your AP transformation delivers lasting results. At a minimum, look for a solution that allows you to get up and running with minimal technical resources and lift from your team, adapts when needed, and provides the insights necessary to make real-time strategic decisions with more confidence.

Key Criteria for Evaluating AP Automation Platforms

When selecting an AP automation solution, prioritize features that support your strategic goals, including:

• End-to-end automation (from invoice capture to payment)
• Seamless integration with ERP and accounting systems
• Robust reporting and analytics
• AI-powered error detection and fraud prevention
• User-friendly interface and mobile access
• Scalable architecture to support growth

Accounts Payable Automation: A Buyer’s Guide

Our AP automation buyer’s guide outlines key factors to consider when assessing available solutions.

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Conclusion: How to Achieve Operational Excellence with Accounts Payable Automation

Best-in-class AP performance is within reach for organizations willing to invest in automation, track the metrics that matter, and adopt proven solutions. By benchmarking your current process, setting clear goals, and leveraging tools like Concur Invoice, you can reduce costs, improve efficiency, and elevate accounts payable from a transactional function to a strategic asset.

[H3] Take the Next Step: Resources for Your AP Automation Journey

Ready to unlock your AP potential? Start by assessing your metrics, automating what matters, and choosing solutions that drive real results. Use these resources to get started:

• Accounts Payable Metrics that Matter
• Benchmark your accounts payable performance
• Accounts Payable Reporting: Achieve Financial Transparency with SAP Concur
• Five key benefits of Concur Invoice
• Is Your Current AP Process Truly Automated?
• The Essential Guide to Accounts Payable Automation
• Accounts Payable Automation: A Buyer’s Guide

FAQ

What is accounts payable automation and why is it important?

Accounts payable automation uses technology to streamline invoice processing, approvals, payments, and reporting. It reduces manual work, minimizes errors, and helps organizations save time and money.

How do I know if my AP process is “best-in-class”?

Benchmark your AP metrics—such as invoice processing time, cost per invoice, exception rate, and touchless processing—against industry standards. Top performers process invoices in 3.1 days, at $2.78 per invoice, with exception rates of 9% or lower.

What are the main benefits of automating AP with Concur Invoice?

Concur Invoice increases accuracy, improves cash flow visibility, streamlines workflows, simplifies reporting and audits, and supports scalability for growth.

How can I move from manual to touchless AP processes?

Assess your current process, set clear goals, invest in automation technology, train your team, and continuously monitor and optimize your AP metrics.

 What features should I look for in an AP automation platform?

Look for end-to-end automation, seamless ERP integration, robust analytics, AI-powered error detection, user-friendly design, and scalability.

How does AP automation impact compliance and fraud prevention?

Automated solutions help flag duplicate invoices, unapproved vendors, and missing coding requirements, enhancing internal controls and reducing fraud risk.