10 ways to make your AP process hassle-free

Managing accounts payable (AP) can feel like a never-ending cycle, but it doesn’t have to be complex or time-consuming. By implementing some best practices, you can simplify your AP process, reduce errors, and help your ability to maintain strong cash flow. Here are ten tips to take your AP management to the next level and get more out of your payment processes.

1. Centralize and automate AP functions

Modern AP functions shouldn’t rely on spreadsheets and manual data entry. Instead, update your system by centralizing and automating AP tasks. This means consolidating your AP activities to reduce manual work, making the process faster, more accurate, and easier to manage. Automation can help reduce repetitive data entry, eliminate errors, and ensure timely payments. Find an AP automation solution that can make your processes faster and allow your team to focus on more strategic tasks.

2. Implement a three-way matching process

Preventing errors and fraud starts with implementing a three-way matching process. This involves verifying invoices against both purchase orders and receiving reports to ensure all three documents align. Matching these documents not only strengthens financial controls but also catches discrepancies early, saving time and money. It’s a straightforward step that can prevent headaches and costly mistakes.

3. Set clear payment terms

Don’t leave your suppliers guessing. Misunderstood payment terms are a common cause of friction between businesses and suppliers. To avoid confusion and late fees, be clear about your payment terms from the start. If possible, offer suppliers early payment options in exchange for a discount. This arrangement benefits both sides: Suppliers gain faster access to cash, while you may negotiate reduced costs on materials or services.

4. Use virtual cards for faster, secure transactions

Virtual cards are an increasingly popular payment choice for AP teams due to their added security and efficiency. These digital cards allow you to make payments quickly, set spending limits, and track transactions in real-time, reducing the risk of fraud. WEX offers virtual card solutions that cater to different business needs, giving you control over spending while streamlining payments for smoother AP management.

5. Implement a vendor onboarding process

Bringing new suppliers on board can create bottlenecks if not managed well. In order to simplify the process it’s important to have a structured vendor onboarding process that includes collecting essential information, verifying supplier credentials, and establishing payment terms. An online vendor portal can simplify this, making it easy for new suppliers to join and stay informed. WEX’s supplier enablement services have successfully onboarded millions of suppliers, helping businesses gain visibility into supplier payments and improve overall payment efficiency.

6. Monitor and analyze payment data

Your payment data holds valuable insights into your AP performance. By regularly reviewing this data, you can identify trends, spot inefficiencies, and detect any potential fraud risks. Use analytics tools to track payment trends, identify areas for improvement, and detect potential fraud. WEX can help provide valuable insights into your payment processes.

7. Provide ongoing training for your AP team

Make sure your AP team is well-trained and knowledgeable about your processes and the latest technologies. Consider providing ongoing training and development opportunities to keep them up-to-date.

8. Consider outsourcing to increase efficiency

If handling AP in-house is overwhelming your team, consider outsourcing some or all of the function to a specialized provider. Outsourcing frees up your team to focus on core business functions while experts handle the details. Providers that offer AP services can bring industry expertise and advanced technology to reduce time spent on processing invoices and reconciliation.

9. Review and improve

AP processes should not be static. Schedule regular reviews to assess current practices and pinpoint areas for improvement. With constant advancements in technology, it’s wise to stay updated on the latest trends and tools that could further enhance your process. An occasional overhaul, even of a well-oiled AP system, can reveal new efficiencies and keep your business competitive.

10. Build strong supplier relationships

Reliable supplier relationships are key to smooth AP operations. Regular communication, transparency, and timely payments build trust and can lead to more favorable terms or flexible payment arrangements. When suppliers see that you’re dependable, they’re more likely to prioritize your business, making the AP process smoother and more predictable.

Streamlining your AP process isn’t just about saving time – it’s about improving accuracy, building better supplier relationships, and ultimately contributing to the financial health of your business. By following these best practices and leveraging technology, you can transform accounts payable from a back-office function into a strategic asset.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

Editorial note: This article was originally published on April 22, 2015 and has been updated for this publication.