3 Mistakes in AP that are draining your budget, and how to fix them

Introduction: The hidden cost of AP inefficiency

Historically, Accounts Payable hasn’t been the most high-profile or prioritized area of finance. But that’s changing, and rapidly. In today’s mid- to large-sized global enterprises, AP is stepping into the spotlight as a strategic function with a direct impact on profitability. When neglected, mistakes in accounts payable often become a hidden source of financial leakage.

At Cevinio, we see how finance leaders are recalibrating their priorities. Where investment decisions once centered on aggressive growth and top-line expansion, there’s now a heightened focus on improving operational efficiency and protecting the bottom line. Inefficient AP processes and common AP mistakes can no longer be ignored, they’re being uncovered, analyzed, and systematically optimized.

This transition is unfolding in a high-pressure landscape. Finance teams are tasked with achieving more using fewer resources, all while upholding compliance, accuracy, and speed. Within this context, AP inefficiencies transform from minor frustrations into significant liabilities. The silver lining? Addressing them unlocks immediate cost savings and long-term business value. 

In the sections that follow, we unpack three of the costliest mistakes in AP, and how to resolve them. Backed by current research, expert experience and market insights, each recommendation provides actionable guidance to help finance teams evolve AP from a budget drain into a value-generating powerhouse.

AP mistake #1: Clinging to manual, paper-based invoice processes 

Despite the digital transformation across finance, many teams still rely on paper invoices, email-based approvals, and Excel spreadsheets for tracking and reconciliation. While these manual methods may feel familiar and "under control," they are anything but efficient, and they come with hidden costs. 

Why it drains your budget: Manual invoice processing creates significant inefficiencies, often invisible until they start affecting performance. Here are some of the biggest budget drains: 

• Time-consuming approvals and data entry slow down workflows and delay payments. 

• High error rates from manual input or outdated systems lead to exceptions, rework, and process bottlenecks. 

• Misplaced or lost invoices result in missed payment cycles and unnecessary follow-ups. 

• Late payments trigger avoidable fees and damage supplier relationships. 

According to research from the Institute of Finance & Management (IOFM), manually processing a single invoice can cost between $12 and $20. In contrast, automation can reduce that to as little as $2 to $4, depending on industry, region, and company size. The difference adds up quickly, especially in high-volume environments. 

It’s one of the most common mistakes in accounts payable, yet one of the easiest to address with the right technology.

How to fix it: The path forward is clear, modernize your AP operations through automation. Advanced AP automation platforms, such as Cevinio's, leverage technologies like artificial intelligence (AI), machine learning (ML), and optical character recognition (OCR) to digitize and streamline the entire invoice lifecycle. 

With these technologies, finance teams can automate every step from invoice ingestion to posting, cutting processing costs by up to 80%. More importantly, AP invoice automation frees up staff time for higher-value, strategic tasks instead of monotonous manual work. 

The result? Faster cycles, fewer errors, stronger compliance, and a more agile AP function that contributes directly to the organization’s financial health.

AP mistake #2: Lacking visibility, control, and auditability in AP 

In many organizations, AP processes remain fragmented and unclear. Invoices sit buried in email inboxes, on approvers’ desks, or across disconnected systems, making it nearly impossible to track progress or ensure accuracy. In fact, 21% of AP departments cite a lack of invoice data visibility as a major concern, according to industry reports. 

Why it drains your budget: Without clear, centralized insights into your AP process flows, you’re essentially flying blind. This lack of visibility leads to inefficiencies and increased financial risk, including: 

• Missed early payment discounts 

• Accidental duplicate payments 

• Inaccurate accruals and unreliable cash flow forecasting 

• Higher fraud risk due to weak process controls 

• Compliance gaps from missing audit trails 

When data is scattered and workflows aren’t traceable, finance leaders are left without the information they need to detect bottlenecks, enforce controls, or make confident, timely decisions. 

How to fix it: To turn AP into a transparent, controllable, and audit-ready process, finance leaders should implement tools and practices designed to enhance visibility and governance. Here’s how: 

• Leverage AP dashboards: Get instant answers to key operational questions: How many invoices are pending approval? Are there recurring errors from specific vendors? Is the AP automation tool being used as intended? Dashboards provide the insights needed to tackle these issues head-on. The Cevinio Analytics Suite provides answers to these and many other critical questions. 

• Ensure audit-ready workflows: Modern AP platforms track every action throughout the invoice lifecycle, creating a complete, searchable audit trail. This supports internal controls and compliance with regulatory standards. 

• Integrate AP with your ERP: Disconnected systems create blind spots. This is why Cevinio integrates with your ERP and enforces key controls, such as 3-way matching between invoices, purchase orders, and receipts, automatically and consistently. 

These capabilities offer clear, real-time insights into invoice status, approval trends, supplier behavior, and team performance. They empower finance leaders to make smarter, data-driven decisions, reduce risk, and continuously optimize AP operations. 

With centralized data and full transparency, you’ll gain the ability to forecast cash flow with confidence, reinforce internal controls, and drive stronger financial outcomes across the organization.

AP mistake #3: Neglecting supplier communication and management 

One of the most overlooked aspects of Accounts Payable is the supplier experience. Too often, vendors are left in the dark, uncertain about invoice statuses, facing delayed payments, or struggling to get answers. This lack of communication doesn’t just cause frustration; it erodes trust and weakens business relationships. 

If late payments sound familiar, you’re not alone. According to industry data, late supplier payments are a major challenge for 21% of AP departments. 

Why it drains your budget: Poor communication and inconsistent payment practices can lead to a cascade of financial and operational issues: 

• Damaged supplier relationships and loss of negotiation leverage 

• Tightened payment terms or refusal to extend credit 

• Duplicate invoices due to re-submissions 

• Suppliers prioritizing other customers 

• Rush fees for urgent or expedited deliveries 

• Bottlenecks in your supply chain 

• Time lost handling supplier inquiries 

Did you know that in some cases, up to 20% of an AP team’s time is spent just handling supplier payment inquiries? 

Ultimately, these breakdowns affect your company’s agility, cash flow, and reputation. But here’s the upside: improving supplier communication not only prevents these costs, it can also create new value through better collaboration and access to early payment discounts. 

How to fix it: To strengthen supplier relationships and improve overall AP performance, finance leaders should take a proactive approach to communication and vendor management: 

• Implement a self-service vendor portal: Allow vendors to check invoice and payment status in real time, reducing email and phone inquiries while increasing transparency. Note that the vendor portal is available free of charge for your vendors with Cevinio. 

• Monitor supplier performance: By tracking metrics in the Analytics Suite, such as invoice accuracy, you can identify opportunities for improvement and collaboration 

• Invest in vendor relationship management: Approach suppliers as strategic partners, not just transactional entities. Strong relationships create room for negotiation, flexibility, and mutual growth. 

• Adopt autonomous AP processes: Automating invoice capture, validation, and approvals, ensures timely execution and reduces human error, critical for maintaining supplier trust. 

By treating your suppliers as partners in the process, you reduce friction, increase efficiency, and position your organization for stronger supply chain performance and cost savings.

Next steps: Turning expenses into savings. 

Finance leaders can no longer afford to overlook the costly pitfalls hidden in outdated AP processes. Among the most impactful? The ongoing mistakes in AP that silently drain resources and hinder performance. Yet, making a compelling business case for AP automation, one that earns leadership buy-in and secures budget, can be challenging. The good news? It’s absolutely achievable, and the returns are well worth the effort. 

Time and again, AP automation has proven its value. Forward-thinking organizations are already leveraging it to streamline operations, eliminate inefficiencies, and redirect focus toward strategic priorities like savings, innovation, and sustainable growth. 

Want to see how it works in practice? Explore Cevinio AP Invoice Automation to discover how you can transform your AP function into a driver of financial efficiency and resilience. 

If you're expected to present not just a list of benefits, but also the ROI of AP automation, this guide can support you. We’re also happy to connect and support you on your journey to make AP automation an innovative, tech-driven force in your organization.