AP automation isn’t plug-and-play.
Done right, it streamlines workflows, reduces costs, and unlocks better control. But many firms walk away with broken processes, low adoption, or spiraling exceptions.
So why do so many automation projects fall short?
The Main Pitfalls in AP Automation
Here’s what sinks most initiatives and what to do instead:
1. Poor ERP Integration
- Legacy systems can’t “talk” to the new tool
- Manual workarounds reappear
- Key invoice data doesn’t flow
✅ Fix: Prioritize platforms with API flexibility and native ERP connectors.
2. Automating Broken Workflows
- Old processes just move faster - still flawed
- Approval chains stay inconsistent
- Early payments persist
✅ Fix: Map current workflows before automating. Redesign for control, then deploy.
3. Stakeholder Misalignment
- AP team excluded from tool selection
- IT delays implementation
- Procurement ignores new vendor onboarding
✅ Fix: Build a cross-functional team (Finance, AP, Procurement, IT) from day one.
4. Wrong Tool for the Job
- Overbuilt software for low invoice volume
- No support for multi-entity or multi-currency
- Lack of supplier portal or OCR
✅ Fix: Match solution size to your needs and future growth plans.
5. Poor Supplier Data & Format Variability
- Invoices arrive as scans, PDFs, emails, or faxes
- No consistent PO matching
- High exception rate
✅ Fix: Standardize vendor formats where possible; use AI/OCR to reconcile the rest.
6. No Post-Go-Live Governance
- No one monitors exceptions
- Users revert to email approvals
- Metrics aren’t tracked
✅ Fix: Assign ownership. Measure what matters (cost, cycle time, STP rate).
The Data Behind These Failures
AP automation fails silently until exceptions spike or savings disappear.
Here’s what the latest benchmarks show:
- 74% of teams still aren’t fully automated
- 61% still manually enter invoice data into ERP
- Poor tool fit leads to 6–8x fewer early payment discounts captured
- AP fraud risk is rising as checks persist (check fraud up 65% YoY)
Strategic Takeaways for CFOs
If you’re leading AP transformation, ask these upfront:
- Are we process-ready or just tech-hungry?
- What systems must this tool integrate with?
- Which metrics define success? (e.g., STP %, DPO, invoice cycle time)
- Are vendors onboarded and able to comply?
- Who owns post-launch performance?
ROI Benchmarks
The right AP automation strategy can shrink costs, speed up processing, and improve cash control. But without process readiness, stakeholder alignment, and supplier standardization, even the best tools will under-deliver.
Avoid these six pitfalls, and you’ll avoid spending twice once on the tool, and again on the fix.
Book a Demo to See how Finofo helps you avoid common AP automation failures and scale with confidence.
