The paper chase: Why your AP process is costing you more than you think

Corcentric

“There’s only one use for paper in any office, and it comes on a roll.”
– Anonymous

Vulgar? Perhaps.

Accurate? Absolutely.

Realistic? Well…

While the idea of the paperless office may still be a myth, paperless accounts payable most definitely is not. So, if you’re not AP paperless, yet, there must be a reason(s). To get started, let’s find out why.

Why organizations resist going AP paperless

My organization does not embrace paperless AP automation because… Check all that apply:

🗹 We’d much rather pay $16 per invoice rather than $3
🗹 Payment fraud isn’t a real thing – it’s only scare tactics
🗹 Inefficiency is just another word for slow and steady
🗹 Error prone manual processes are learning experiences
🗹 We love to see our competitors race ahead of us
🗹 We’re not resistant to change, we just don’t want to
🗹 What would happen to all those trees?

As you know, before you can solve a problem you have to admit that there is a problem. So repeat after us, “We are in a paper jam.”

There, that was easy. Almost as easy as becoming AP paperless, which — spoiler alert — will save you money, protect your business from fraud, free your team to focus on value-added tasks, and empower more effective AP management. Let’s break it down.

What paper-based AP processes are really costing you

Paper invoices: the hidden expense of inefficiency
Let’s talk dollars and cents. Manual AP processes cost an average of $15.96 per invoice, compared to just $2.94 for best-in-class organizations using automation​​. That’s over 5x the cost. Multiply that by thousands of invoices a month, and you’ve got a budget drain that’s impossible to ignore.

But the financial hit doesn’t stop there. Paper-based processes gobble up valuable time. Every invoice must be keyed in, matched, verified, approved, and filed. When your AP team is overwhelmed by these manual tasks, they have little bandwidth left for higher-value work like improving cash flow, optimizing payment terms, or analyzing spending trends.

Fraud and duplicate payments
Apologies to Coolio, but paper-based AP systems are like living in a fraudster’s paradise. Bad actors know that manual processes mean weaker controls, with lots and lots of hidden opportunities to make trouble. Think phishing scams, fake invoices, and altered payment instructions — each representing a potential financial disaster. With AP automation, advanced fraud detection tools provide safeguards like automated three-way matching and anomaly detection, reducing fraud risks by a significant margin​.

Duplicate payments are another silent killer. A supplier might send the same invoice twice — once by mail and once by email — leading to accidental overpayment. Automated AP systems eliminate this problem by flagging duplicates before they get processed​​.

By the way, not to cast aspersions, but a not insignificant percentage of AP and payments fraud is done by insiders. There is no definitive statistic, but the trend has grown along with the prevalence of remote and hybrid workforces. AP automation is one way to keep people honest.

Late payments and strained supplier relationships
Suppliers are what keep your operations operating, and timely payments are a key part of keeping those relationships strong. Yet, paper-based systems often lead to late payments due to misplaced invoices, inaccuracies and/or manual delays. The result? Penalties, strained relationships, and even potential supply chain disruptions.

With AP automation, invoices are processed faster — up to 70% faster. 3.9 days on average versus 17.6 days, to be exact​. In addition, early payment discounts become attainable, and suppliers see you as a reliable partner. In competitive markets, that trust can make all the difference.

The environmental case for paperless AP

Let’s shift gears and talk sustainability. On average, a single tree can produce about 10,000 sheets of paper (that’s 20 reams, for fans of The Office). While that seems like a lot, consider that a billion photocopies are made each day according to some global estimates – that’s 100,000 trees. At approximately 340,000 gallons of water to turn one tree into 20 reams, you start to see the environmental nightmare unfold.

Processing invoices manually requires not only paper but also the energy-intensive infrastructure to store, sort, and retrieve documents. By going paperless, you’re slashing your organization’s carbon footprint while sending a clear message to eco-conscious stakeholders that sustainability is more than just a buzzword.

And the benefits are measurable. Reducing paper usage and transitioning to digital workflows eliminates the need for physical storage, cuts down on office supply costs, and streamlines compliance processes. Who says going green isn’t also good for the bottom line?

The strategic advantages of paperless AP automation

So far, we’ve focused on what paperless AP can prevent — fraud, inefficiencies, and environmental waste. But what about what it can create? Here’s how AP automation becomes a strategic powerhouse:

  1. Real-time visibility into financial performance
    Manual processes create blind spots. With automation, you gain access to real-time data analytics, empowering financial leaders to make informed decisions. Want to know your exact cash position or how many invoices qualify for early payment discounts? Automation provides those insights instantly​.
  2. Scalable solutions for growth
    As your business grows, so does the complexity of your AP workload. AP automation scales with your needs, handling increased invoice volumes without requiring additional staff. This scalability ensures your operations remain efficient, even during periods of rapid expansion​.
  3. Improved compliance and audit readiness
    Keeping up with regulations like Sarbanes-Oxley is a tall order when your processes are manual. Automated systems maintain detailed audit trails and ensure compliance protocols are followed to the letter. When auditors come knocking, you’ll be ready​.
  4. Enhanced team morale and productivity
    No one enjoys manually matching invoices or chasing down missing approvals. Automation liberates your AP team from repetitive tasks, allowing them to focus on value-added activities like supplier negotiations or cash flow optimization. The result? Happier, more productive and goal-focused employees and a more strategic AP function.

How to make the leap

If you’re ready to ditch paper and embrace paperless AP automation, here’s what you need before heading over to the C-suite:

  • Start with a clear business case: Highlight the ROI of AP automation, including cost savings, fraud prevention, and efficiency gains.
  • Choose a scalable, cloud-based solution: Cloud platforms offer the flexibility to grow with your business while minimizing IT resource demands​.
  • Engage your team and suppliers: Ensure buy-in from internal stakeholders and make it easy for suppliers to adopt e-invoicing through intuitive portals and clear communication​.

Conclusion: Ready to break out of the paper jam?

Remember, the only direction a paper trail can take you is backwards. Don’t go there.

Adopting paperless AP isn’t just a cost-saving measure; it’s a competitive advantage. By transitioning to automation, you free your AP team from the endless grind of manual processes and empower them to focus on strategic, value-driven work. Whether it’s improving supplier relationships, bolstering compliance, or enhancing your bottom line, the benefits of paperless AP are clear.

Download our comprehensive whitepaper, The Ultimate Guide to AP Management, to explore how organizations like yours are slashing costs, boosting efficiency, and transforming AP from a cost center into a strategic powerhouse.