The clock is ticking on 2024, and accounts payable (AP) leaders are feeling the pressure to innovate. Gone are the days when AP was seen as just another back-office function. Today, it’s the backbone of financial operations, a key player in fraud prevention, and a critical driver of efficiency.
However, with great responsibility comes great challenges, especially as fraud risks escalate, working capital pressures grow, resources tighten, and stakeholders demand better visibility.
This isn’t just another list of hurdles. It’s your call to action.
As we head into 2025, the decisions AP leaders make about their invoice-to-pay processes and technology will define the success of their department and their organization.
This article explores why AP is becoming more essential than ever, the biggest challenges on the horizon, and how advanced tools can help you lead your team into the future with confidence.
The Growing Importance of AP
AP is stepping into the spotlight.
With financial uncertainty looming and cash flow tighter than ever, organizations are relying on AP for more than just paying bills. This once-overlooked department is now a strategic powerhouse, poised to influence everything from cash flow optimization to supplier relationships.
- Smart insights. In 2025, real-time insights into cash flows and corporate spending will be non-negotiable for business success. AP departments that leverage technology to track spending, optimize payment schedules, and forecast cash needs can provide invaluable data to finance leaders, helping their organizations navigate economic uncertainty with agility.
- Working capital. Organizations are asking AP teams to do more than process payments – they want AP to find ways to maximize working capital. By managing the timing of payments, leveraging early payment discounts, and providing enhanced visibility into cash flows, AP leaders can directly contribute to the financial health of their organizations.
- Risk mitigation. As fraud risks grow and compliance requirements tighten, AP departments are expected to act as financial watchdogs. From verifying supplier details to catching anomalies in payment requests, the role of AP in risk mitigation will only expand.
- Supplier management. In a world where seemingly small supply chain disruptions can be crippling, maintaining strong supplier relationships is critical. Timely and accurate payments build trust and loyalty, ensuring that your organization remains a preferred partner.
AP is no longer just a cost center. It’s a strategic asset that drives value across the organization.
Top AP Challenges
As AP evolves into a strategic asset, the path forward isn’t without obstacles. Fraud risks, inefficiencies, and supplier inquiries remain pressing concerns, but they also present opportunities for AP leaders to innovate and drive meaningful change. Addressing these challenges with the right strategies and tools can transform AP from a reactive function into a proactive powerhouse.
- Risk of fraud. Payment fraud schemes like Business Email Compromise (BEC) and fake bank account change requests are becoming increasingly sophisticated, targeting the gaps in manual AP processes. The financial and reputational damage from fraud can be devastating, making robust detection and prevention measures critical for every AP team.
- Pressure to ‘do more with less.’ Processing invoices manually and paying suppliers with paper checks is a losing battle against time and resources. Manual keying, email chains, and inevitable errors create bottlenecks that slow down workflows and frustrate suppliers. With fewer resources available, AP teams are under pressure to eliminate inefficiencies.
- Slow approvals. Every delayed invoice approval is a missed opportunity – whether it’s an early payment discount or a chance to strengthen a supplier relationship. The longer the invoice cycle time, the greater the risk of financial penalties, strained supplier relations, and inaccurate financial reporting. And paying suppliers with checks exacerbates the situation.
- Supplier inquiries. Endless calls and emails from suppliers looking for updates on the status of invoices and payments bogs down AP teams and leaves suppliers feeling neglected. Without a self-service option, both sides are stuck in a cycle of inefficiency and frustration.
Addressing these challenges is essential for AP teams to fully realize their strategic potential.
Power Up Your AP in 2025
The solution is simpler than you think. Advanced invoice-to-pay platforms like Edenred Pay are designed to tackle these challenges, transforming your AP department from reactive to proactive.
Here’s how invoice-to-pay automation can turn your obstacles into opportunities.
- Automate fraud mitigation. Fraud mitigation begins with technology that can verify critical details, safeguard data, and flag anomalies. Edenred Pay’s built-in controls, such as user access permissions, multi-factor authentication (MFA), automated segregation of duties, systematic workflows, audit logging, and advanced data encryption, offer a safeguard against even the most sophisticated payment fraud attempts, ensuring peace of mind for AP leaders.
- Streamline invoice processing. Automation eliminates bottlenecks, allowing invoices to flow seamlessly through your organization. Edenred Pay’s invoice-to-pay solution automates the capture of invoice header and line-item details, matches invoices to purchase orders, and posts matched invoices directly to any enterprise resource planning (ERP) or accounting software package, slashing cycle times and reducing errors. Unmatched supplier invoices or invoices that require review are digitally routed based on pre-configured business rules.
- Provide supplier self-service. Imagine a world where suppliers have instant access to their payment statuses, remittance details, and historical payment information. With Edenred Pay’s self-service portal, that world becomes a reality. Suppliers can access these insights without contacting your team, reducing inquiries and improving satisfaction on both sides.
- Improve visibility. Real-time dashboards provide a bird’s-eye view of your AP operations, from invoice statuses to cash flow trends. Edenred Pay’s dashboards make it easy to identify inefficiencies, track performance, and optimize working capital – all with just a few clicks.
By automating processes, enhancing security, and empowering suppliers with self-service capabilities, Edenred Pay turns AP challenges into opportunities for growth and efficiency.
Conclusion
The road ahead for AP is challenging, but it’s also filled with opportunities for transformation. Addressing these challenges with innovative tools like Edenred Pay’s invoice-to-pay platform mitigates the risk of payment fraud, optimizes workflows, and builds stronger supplier relationships. The new year is your chance to redefine what’s possible in AP – are you ready to lead the way?
