Turn accounts payable into a strategic lever

A practical guide for mid‑market CFOs in ANZ

Table of Contents:

1. 1. Why manual AP holds you back
   2. What “good” looks like in 2025
   3. Build the business case: start with a baseline
   4. A pragmatic 30/60/90 plan
   5. Controls that stand up to audit and fraud risk
   6. Operating model: people, process, platform
   7. Working capital and supplier experience
   8. What to watch out for (and how to avoid it)
   9. The CFO dashboard: six metrics that matter
   10. Where ProSpend fits

TL;DR:

Manual AP quietly taxes capacity, weakens controls and blurs working‑capital signals. Standardise the process, automate the admin and unify AP with expenses, cards, POs and budgets. Start with a hard baseline, run a 60‑day pilot, then scale platform‑wide. Track six executive metrics to prove value fast.

Why manual AP holds you back

If invoices still arrive by email, approvals bounce around inboxes and matching happens after month‑end, you’re paying three times: in people time, in control gaps and in cash‑flow leakage. Typical symptoms we hear from finance teams include: long cycle times, preventable errors, missed early‑payment discounts, awkward supplier conversations and heavy audit prep. The visible costs (overtime, late fees) are only half the picture; the rest shows up in exception rates, budget surprises and a team that’s always catching up.

Executive takeaway: AP becomes strategic when approvals and policy sit before spend, when coding and matching are touchless for the common paths, and when every dollar is visible against budget in real time.

What “good” looks like in 2025

A modern, mid‑market AP operation is simple, standard and measurable:

• • Real‑time visibility across invoices, approvals, liabilities and budgets in one view.
  • Pre‑approval and policy control using purchase orders, limits and rules to prevent off‑policy spend.
  • Smart capture and auto‑coding to your chart of accounts with machine‑assisted accuracy.
  • Three‑way matching (PO, receipt, invoice) before payment is released.
  • Supplier self‑service to submit invoices and check status without email chains.
  • Audit‑ready by default with tamper‑proof trails and consistent retention.
  • One unified platform spanning AP, expenses, corporate/virtual cards, POs and budgets, integrated to your ERP.

Build the business case: start with a baseline

Before you automate, quantify today’s reality. Keep it to a one‑page “board pack” with:

• • Cost per invoice (fully loaded).
  • Cycle time from receipt to ready‑to‑pay.
  • Auto‑coding/“no‑touch” rate for straight‑through processing.
  • Exceptions per 1,000 invoices (duplicates, mismatches, missing POs).
  • Early‑payment discount capture vs eligibility.
  • On‑time payment % and supplier query volume.

This baseline frames the outcome narrative (“from X to Y”) and sets the test plan for your pilot. It also gives you the talking points a board wants: capacity released, control uplift and working‑capital impact.

A pragmatic 30/60/90 plan

Days 0–30: Establish the baseline

Map the end‑to‑end flow, time the bottlenecks, measure exceptions, and confirm ERP integration requirements. Document approval policies and where they’re bypassed. Shortlist unified platforms that can cover AP now and adjacent spend later.

Days 31–60: Prove the value

Pilot with 1–2 high‑volume suppliers. Turn on automated capture and coding, standardise approvals, and introduce supplier self‑service. Configure “golden paths” for straight‑through invoices; send alerts for duplicates and missing POs. Publish a live dashboard to stakeholders.

Days 61–90: Scale and embed

Extend to the full supplier base. Enable three‑way matching, budget checks and scheduled payment runs. Close the loop with payments and plan adjacent rollouts: POs for pre‑approval and virtual cards for controlled discretionary spend — on the same platform.

Controls that stand up to audit and fraud risk

Compliance and fraud posture improve when control moves upstream:

• Preventive controls: pre‑approval via POs, budget checks and rules on supplier, amount and category.
• Detective controls: duplicate detection, price/quantity variance thresholds, anomaly flags.
• Evidence by default: every approval, change and payment step is logged; documents are linked and findable in seconds.
• Separation of duties: configurable roles, maker–checker flows and payment permissions.

These are easier to enforce in one platform than across disconnected tools and email. The result is faster audits, fewer incidents and clearer accountability.

Operating model: people, process, platform

To make the change stick, align three levers:

People

Define the roles (AP lead, process owner, approver communities). Set SLAs for coding and approvals and publish them. Build a short enablement path: 30‑minute approver training, 60‑minute AP power‑user session, and a one‑page “how to approve well” guide. Keep communications clear and in Australian English per your house style.

Process

Standardise intake (supplier portal + email ingestion), approvals (policy‑driven paths) and exceptions (duplicate, no‑PO, variance). Keep paragraphs of your SOPs short and scannable; use checklists for steps and controls.

Platform

Choose a unified solution so AP, expenses, cards, POs and budgets share the same data and rules. Prioritise ERP‑grade integrations and local compliance features (e.g., GST/FBT support). Balance automation with flexibility — automate the 80%, but make it easy to handle edge cases.

Working capital and supplier experience

When cycle times shrink and visibility improves, you can:

• • Capture discounts systematically because approvals happen early.
  • Negotiate terms from a position of reliability (on‑time payments backed by real‑time status).
  • Reduce supplier noise via self‑service status and fewer preventable queries.

What to watch out for (and how to avoid it)

• • Big‑bang scope. Start with a contained pilot to prove value, then scale.
  • Automating a broken process. Standardise first; then automate.
  • Tool sprawl. A patchwork of point tools re‑creates the reconciliation problem. Prefer a unified platform so spend is controlled before it happens — not reconciled after.
  • Change fatigue. Keep training short, use plain language and publish simple SLAs; it’s in the checklist for a reason.
    

The CFO dashboard: six metrics that matter

Keep your executive view tight and comparable month to month:

1. 1. Processing cost per invoice (all‑in).
   2. Cycle time (receipt to ready‑to‑pay).
   3. Auto‑coding/straight‑through rate.
   4. Exceptions per 1,000 invoices.
   5. Discount capture rate vs eligibility.
   6. Supplier experience (on‑time payments, query volume).

These fit neatly on a single slide and translate directly to capacity released, control uplift and cash outcomes.

Where ProSpend fits

For ANZ mid‑market finance teams, the shortest path to “good” is one platform designed for proactive spend control:

• • Unified by design: AP automation, expenses, corporate/virtual cards, POs and budgets in one place — fewer tools, fewer gaps, one version of the truth.
  • Proactive control: enforce policy before spend occurs (pre‑approval, budgets, card controls) instead of policing after month‑end
  • Built‑in fraud prevention and auditability: duplicate detection, rules‑based approvals and complete trails.
  • ANZ‑ready: local support and features aligned to GST/FBT reporting and regional workflows.
  • Integration‑friendly: connect cleanly to your ERP so data flows without duplicate entry.

Your next steps

1. Capture your baseline (cost, cycle time, exceptions, discount capture).
2. Shortlist unified platforms that integrate with your ERP and support pre‑approval and three‑way matching.
3. Run a 60‑day pilot with two suppliers and a published dashboard.
4. Scale across spend (AP → POs → cards → budgets) for full control and visibility.