By Sharon Nouh (pictured), CEO & Founder, ProSpend
Traditionally, manual processes carry too much risk, while automated workflows deliver the accuracy, speed and control finance teams need to stay ahead. In this article, we discuss why the future of accounts payable in Australia is automation.
Our recent report, Stop the AP Leak, we looked beyond the obvious frustrations of manual AP: slow approvals, data errors, inconsistent processes and exposure to fraud. We also explored how leading organisations are closing the gaps. The message from CFOs across industries was clear: automation is no longer optional for organisations that want to remain competitive. It is now the foundation of a resilient and future-ready finance function. In this article, we’ll explore what that looks like in practice.
Eventually, every growing organisation reaches a point where the risk from outdated systems is too high to ignore. Lou Krstevski, Principal and CFO of Sydney-based financial services firm BAC Consulting & Advisory, describes some of the benefits he’s experienced.
“Moving the entire payment process to an automated paperless system greatly increased tracking, archiving, retrieval for audits and for self-management by managers who wanted to access the status of their invoices,” he says.
“In many disputed cases it was very easy to access approved and paid invoices by all staff. The speed and cost of external and internal audits also improved when a centralised paperless system managed the entire process allowing for easy verification.”
What Automation Delivers
The shift from manual to automated accounts payable processes delivers considerable gains across the areas that matter most to CFOs:
- Processing costs drop sharply: Companies that adopt automation reduce processing costs, eliminating the labour spent on data entry, chasing approvals and fixing errors. Savings build fast when late fees disappear and early payment discounts start to land.
- Errors and fraud risks decline: Automated validations catch duplicates, flag unusual payment changes and create clear digital audit trails.
- Cash flow visibility improves: When approvals move faster and invoices are tracked digitally, CFOs gain real-time insight into upcoming commitments. Forecasting becomes reliable rather than reactive.
- Supplier relationships strengthen: Faster payments and clearer communication improve negotiating power and set the stage for better terms. Organisations that pay reliably and on time become preferred partners.
For Retief Lampen, CFO of Sydney-based advertising technology company iion, frustrations were common before implementing an accounts payable system with built-in approvals.
“We often didn’t receive approvals before the due date of the invoice, which meant we had to set aside time to chase up approvals. However, this has been solved by implementing an AP system with approvals that are built in.”
From a fraud prevention perspective, automation also eliminates the most common points of failure by validating supplier details with ABNs, flagging duplicates and verifying document authenticity. This stops losses before they happen and lets finance teams focus on guiding performance, not paperwork.
What’s Holding Teams Back from Automation?
Despite the clear benefits of automating accounts payable processes, many organisations hesitate to make the leap. The barriers are both practical and psychological.
Retief Lampen identifies three main sources of resistance: resource capacity, comfort, and fear.
“Teams lack the time and resources to implement new systems while still completing their day-to-day tasks. Complacency sets in when there’s no crisis and some accounts payable staff may fear that reduced workloads could put their jobs at risk.”
Limited capacity is a genuine challenge for already stretched finance teams. Making space to step back from daily work and drive change can feel impossible, and fear of the unknown often lingers longer than expected.
Morgan Wilson, Founder and Director of Brisbane-based firm Creditte, notes that comfort with the status quo is a classic barrier.
“Many finance teams believe ‘it’s working well enough,’ until a duplicate payment or fraud attempt proves otherwise. Change feels disruptive but the real disruption is sticking with outdated systems.”
Upfront investment can be a sticking point, especially when the long-term benefits aren’t clearly shown.
Lou Krstevski points to the initial capital investment as an issue.
“The initial capital that needs to be invested is always an issue, particularly if you cannot communicate to the board the measurable benefits and outcomes of automation. Secondly, I would say a lack of knowledge or an internal culture that is resistant to change, which can be overcome through further education.”
Automating accounts payable transforms finance from a reactive cost centre into a strategic driver of performance. It cuts costs, reduces risk and gives CFOs the visibility to make faster, better decisions and strengthen supplier relationships.
The barriers to adoption are real but surmountable. The finance leaders we spoke to in our report consistently emphasised that the cost of inaction outweighs the investment required to modernise. For organisations still using manual processes, the question isn’t if you’ll automate — it’s when.
Read the full report, Stop the AP Leak, to learn how leading Australian CFOs are implementing automation and what results they are seeing.
