5 Ways UK Businesses Can Transform Accounts Payable Processes

Accounts payable has long been the quiet workhorse of finance. The teams here are almost always buried in paperwork and on high alert for errors. But that’s changing fast.

AP is now one of the fastest evolving areas in finance. Many companies are now using Artificial Intelligence (AI) to streamline repetitive tasks and reduce manual pressure. The growth of the UK’s AP automation market says it all - it’s expected to rise at a 12% CAGR from 2025 to 2035¹.

If you’re an AP manager looking to tighten your finance operations, we’ve put this guide together for you to explain how AI and automation can take routine tasks off your plate.

We’ve also explained how Wise Business can give you clean records and effortless transfers, so you can finally skip the midnight number-crunching.

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Overview

How AI and automation can transform your AP process	Steps involved
💻 Digital Vendor Onboarding	Identify and screen vendors Collect and verify documents Finalise contracts and SLAs Integrate into ERP Train vendors Review performance continuously
🧾 Centralising Invoice Receipt	Standardise how invoices are submitted Use AI/OCR to capture data Validate against POs and vendor records Apply approval rules Store centrally Track KPIs for accuracy and speed
🧠 AI-driven Invoice Pre-processing and Processing	Convert invoices (from all formats) to text Extract key fields Analyse context using AI Match with PO/GL data Flag exceptions Route clean invoices for approval
🚀 Designing Automated Invoice Approvals	Identify bottlenecks Map roles and responsibilities Choose AP automation software Standardise invoice capture Create rule-based approval flows Set SLAs Monitor metrics and optimise
💰 Real-time Cash Flow Visibility	Consolidate all payables Forecast cash inflows/outflows Prioritise payments strategically Use dashboards for live insights and ongoing optimisation

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👀 Find out more by reading our guide to accounts payable process.

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1. Digital vendor onboarding

Vendor onboarding is the process of setting up a new supplier in your system so you can start doing business with them. How it’s handled sets the tone for your entire business relationship.

For years, this process has been slow, messy, and downright frustrating. There are piles of tax forms to get through, endless emails for bank details, and the constant worry that someone has manually entered the wrong information.

These seemingly small steps can cost your business thousands and hold up everything else you need to buy or sell.

Automatic vendor onboarding portals are changing all that. Suppliers can:

1. Log in to the system.
2. Upload the required details.
3. Let the system instantly verify everything (from payment information to tax IDs).

A smooth onboarding like this sets the stage for a strong, long-term partnership.

Why it matters

A well-structured vendor onboarding process protects a business from risks and ensures the supply chain moves without interruption.

When suppliers can submit documents, verify details, and get approved without endless back-and-forth emails, it creates trust from the very beginning.

It also gives procurement teams cleaner data to work with. Instead of chasing missing forms or outdated certificates, everything lands in one place and stays compliant.

Most importantly, digital onboarding builds long-term reliability. Suppliers know exactly what to expect, and teams can spend less time fixing errors.

PwC’s 2024 Digital Procurement Survey reports that organisations aim to digitise 70% of their procurement processes by 2027².

This goal signals a broader shift in the UK and beyond toward fully digital procurement ecosystems. And supplier onboarding is a core part of that transformation.

How it works

This is what a digital onboarding process looks like:

Step 1: Identify vendors that match your goals, quality standards, and ESG commitments.
Look at their capabilities, scalability, and financial health. Tools like strategic sourcing platforms and pre-qualification scorecards help narrow down the best-fit partners.

Step 2: Before moving forward, dig deep. Check financials, reputation, sanctions lists, and cybersecurity practices. Flag high-risk vendors early. This ensures your procurement decisions are data-driven and your supply chain stays secure.

Step 3: Collect key documents: tax forms, certifications (ISO, SOC), insurance, and regulatory declarations. Verify them against both internal standards and legal requirements, and store them centrally with automated alerts for renewals.

Step 4: Legal and procurement teams work together to finalise terms, SLAs, confidentiality clauses, IP rights, and dispute resolution protocols. Define KPIs and penalties clearly to prevent misunderstandings and set clear expectations.

Step 5: Connect the vendor to your ERP, procurement, and invoicing systems. Follow with training on workflows, invoicing rules, and compliance standards.

Step 6: Set clear benchmarks (such as delivery punctuality, product quality, and responsiveness) and use them to guide regular performance reviews. Maintain an open, two-way feedback loop to identify gaps and make continuous improvement across the vendor lifecycle.

Automated onboarding is clearly the future. It can significantly cut the approval cycle times. In turn, vendor relationships stay positive from day one as they expect better collaboration.

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2. Centralising invoice receipt

Invoice receipt is the first step in every accounts payable workflow. And for years, this has been the messiest one.

In most cases, invoices arrive through multiple sources (email, post, PDFs, scans, or supplier messages). AP teams have to dig through inboxes, folders, and stacks of paper to figure out what came from where.

AI and automation are easing this struggle. The systems pull all incoming invoices into a central hub. This makes it easier for AP personnel to scan and verify information before starting the process.

Why it matters

When invoices are scattered across inboxes and folders, it’s impossible to tell what’s pending, what’s missing, or what’s overdue. Centralising invoice receipt solves that problem immediately.

All bills flow into a single system. It gets easier for AP staff to track and push them into the processing phase quickly. Plus, there are fewer operational risks. Businesses can spot unusual spending spikes and detect mismatches early.

On the other hand, organisations that handle invoices manually may take eight to ten days on average to move an invoice from receipts to payments³. This could lead to strained customer relations and keep the staff from performing more crucial tasks.

How it works

Below are some steps for AP staff to follow after implementing a centralised invoice receipt system:

Step 1: Ask vendors to submit invoices in a consistent channel or format to simplify capture. This is the initial step to ensure that all invoices are processed efficiently.

Step 2: Use AI and OCR tools to automatically collect and validate invoices. Configure the system to read key fields and to use validation rules to check for missing fields, incorrect formats, or mismatches against purchase orders. Route any exceptions to the relevant team for manual review.

Step 3: Check extracted data against internal records, purchase orders, and vendor information. The system flags missing fields, duplicates, or inconsistencies for review, reducing errors and saving AP teams hours of manual checking.

Step 4: Define approval workflows based on invoice value, vendor type, or risk level. Low-value invoices can be auto-approved, while higher-risk or high-value invoices are routed to the appropriate personnel, with reminders and escalation paths in place.

Step 5: Upload all invoices to a central platform and link them to your ERP or accounting system. Ensure each invoice record includes all related documentation, such as purchase orders or receipts. Use consistent naming conventions, tagging, or categorisation for easy retrieval.

Step 6: Set benchmarks for key metrics (on-time payments, invoice accuracy, and exception resolution) and maintain a feedback loop to ensure continuous improvement across the AP process.

Effective invoice receipt not only impacts the bottom line but also affects the overall strategic decision-making. This may be why 85% of organisations have adopted some form of automation within their accounts payable process⁴.

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3. Leveraging AI for invoice processing and pre-processing

Once invoice receipt is complete, it’s now the time to handle the pre-processing and processing phases. This is where data is validated, matched to purchase orders, and prepared for payment.

When done in the old-school way, the AP staff must spend hours entering data, checking for mismatches, and routing invoices for approvals.

AI is transforming this stage by automating repetitive tasks. As a result, the invoices are accurate and are tracked in real time. In the meantime, AP teams can focus on high-end, strategic tasks.

Why it matters

AI-powered invoice processing is bringing dramatic changes in AP operations. It helps you keep up as invoice volumes grow. Natural Language Processing (NLP), Machine Learning (ML), and Language Learning Models (LLM) are among the core technologies powering this system.

According to recent data, accounts payable automation can slash processing costs by up to 80%, boost invoice accuracy by 73%, and reduce cycle times from 15 to just 4 days⁵.

Numbers like these are just the right dose of motivation for the companies that’ve not hopped on the AI in AP bandwagon yet!

How it works

AI invoice processing uses pattern recognition and language models to convert invoices into clean, usable data. It does so in the following six steps:

Step 1: Turns invoice images into readable text with OCR or handwriting recognition. It can convert PDFs, scans, and paper files into digital text that the system can use.

Step 2: Pulls out key fields automatically (vendor details, invoice numbers, dates, line items, taxes, and totals). It uses NLP and pattern recognition to handle different layouts.

Step 3: Understands the context of each field and correctly identifies which numbers belong where, even when invoices vary in format.

Step 4: Checks the extracted data against internal records, matches invoices to purchase orders or general ledger costs, and confirms vendor, contract, and receipt details to ensure everything lines up.

Step 5: Spots issues instantly. This could be mismatched totals, duplicates, missing items, or wrong dates. It can cut down the time AP teams spend hunting for errors.

Step 6: Send clean invoices to the correct approvers. This happens after evaluating rules such as department, amount, or risk, and auto-approving simple, low-value invoices.

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4. Designing faster, smarter workflows for invoice approvals

Invoice approvals are often a bottleneck in accounts payable. Even when invoice capture and pre-processing are automated, delays can happen if approvals rely on manual routing or paper signatures. An intelligent workflow ensures invoices move quickly while staying compliant.

Why it matters

Today, companies handle large volumes of transactions across multiple locations. Relying on manual invoice approvals can slow down cash flow. Implementing an automated invoice approval workflow allows organisations to process millions of invoices in seconds.

On the other hand, there could be serious consequences for a company that lacks a solid invoice approval system. For example, a business that misses a 2% early payment discount on £500,000 worth of invoices annually could lose £10,000. This is a plain loss that could be avoided with an automated approval setup.

How it works

A streamlined invoice approval workflow combines automation with human collaboration to speed up the payments. Here’s how to modernise the process in seven practical steps:

Step 1: Start by identifying current challenges, like long approval cycles, missed discounts, or manual errors.

Step 2: Map out all responsibilities clearly:

• Requesters submit purchase requests
• Procurement manages invoices and contracts
• AP handles payments
• Management approves high-value invoices
• Finance oversees budgets

Step 3: Choose the right AP automation software that unifies invoices, purchase orders, and approvals. Look for features like AI-based OCR, PO matching, exception handling, vendor portals, ERP integration, and predictive AI to reduce manual fixes.

Step 4: Standardise how invoices are received and captured. Encourage vendors to submit electronically through a portal or a dedicated inbox.

Step 5: Design approval flows based on business rules. For instance, invoices under £1,000 can auto-approve. High-value invoices require a CFO sign-off, and department-specific invoices are routed to the right lead. AI enables dynamic routing and sends instant notifications for fast, mobile-friendly approvals.

Step 6: Set service level agreements (SLAs) to keep payments on track. An example timeline could look like this: requesters code non-PO invoices within 1 day, approvers respond within 2 days, and AP resolves exceptions within 3 days. AI sends reminders and automatically deals with delays.

Step 7: Track KPIs and optimise continuously. Measure metrics like average invoice-to-payment time, processing rates, and early payment discounts achieved. Real-time dashboards can provide insights to keep the workflow fluid.

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5. Gaining real-time cash flow visibility

Richard Branson famously said that cash flow is the lifeblood of any business⁵. And he wasn’t wrong. An inefficient AP system can quickly disrupt cash flow and strain finances.

Managing payment timing is key: pay too early, and you risk depleting reserves. Pay too late, and you risk penalties or strained supplier relationships. Among all the strategies businesses use to balance cash flow, an automated accounts payable function stands out for its accuracy.

Why it matters

Real-time cash flow visibility lets finance teams see exactly where money is at any given moment. As a result, the day-to-day decisions become faster. It helps anticipate shortfalls, improve forecasting, and optimise working capital.

All the teams stay on one page when it comes to budgeting. The value of this became clear during COVID‑19, when businesses with up-to-date cash insights could react instantly to a rapidly changing economy. Simply put, knowing your cash position in real time keeps your business agile and in control.

How it works

Businesses that optimise cash flow can better manage their working capital and meet their financial commitments on time. Below are the steps that unfold when you automate cash flow management for AP teams:

Step 1: Combines all payables and invoices into a single platform. This gives finance teams a full view of what’s owed and what’s coming in.

Step 2: Gives a forecast of the cash flow. Predicting incoming and outgoing payments helps you plan ahead and avoid surprises.

Step 3: Prioritises payments wisely. It lets the team focus on due dates, early payment discounts, or key vendor relationships to make the most of your cash and build stronger partnerships.

Step 4: Turn data into actionable insights. Dashboards and real-time reports enable finance teams to make quick, informed decisions and adjust strategies on the fly.

Nearly half of companies are now exploring AI for treasury and cash flow forecasting, according to a KPMG report⁶.

By pairing traditional budgeting practices, such as spending limits and regular report checks, with real-time AI insights, finance teams can forecast more accurately.

As a result, the decisions are better informed and more favourable to the business.

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Manage international vendor payments seamlessly with Wise Business

Wise Business has a wide array of fantastic features* that makes it the ideal business account for AP Teams.

Not only can you hold balances in 40+ currencies and manage multiple currencies in one account, but you can also send money to 140+ countries and pay your suppliers and contractors with no hidden fees at the mid-market exchange rate (the one you see on Google).

And if you find yourself needing to streamline your workflows, you can use the accounting software integrations within Wise Business to automate reconciliation and save hours on financial admin.

Be Smart, Get Wise.

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**Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Sources:

1. Accounts Payable Automation Market Forecast and Outlook 2025 to 2035
2. PwC Digital Procurement Survey
3. How Much Is Manual Invoice Processing Costing Your Business?
4. Accounts Payable Statistics
5. Richard Branson Quote
6. KPMG global AI in finance report

Sources last checked on 8th December 2025