Rethinking AP Automation: Why “Good Enough” Isn’t Good Enough Anymore
by The Ottimate Editorial Team
Research from the Institute of Finance & Management (IOFM) found nearly three out of four AP teams already have some kind of technology in place. On the surface, that sounds like progress. But here’s the catch: most of those same departments still manually handle the majority of invoices they receive from suppliers.
The problem isn’t a lack of technology. Instead, it’s the patchwork approach. Too often, companies add some basic automation here or a quick fix there without a full strategy to connect the dots.
Partial automation isn’t good enough anymore. This approach slows teams down, creates risk, and leaves money on the table. To truly move the needle, businesses need to think bigger. It’s time to embrace end-to-end AP automation powered by AI to unlock time savings, fraud protection, and real growth opportunities.
The biggest AP challenges (and why partial automation isn’t solving them)
Ask a room full of finance leaders what slows down their teams, and a few key themes will emerge:
- Time and resource constraints: Manual processes stretch teams thin. They’re wasting time keying in data and chasing approvals, which leaves them with little time for more strategic work.
- Error rates and rework: Manual entry inevitably leads to mistakes, and fixing them eats up even more time.
- Fraud prevention: The rise of AI has made AP fraud more prevalent, with some Ottimate customers reporting up to a 40% increase in fraudulent invoice attempts.
- Price fluctuations: In industries like restaurants and hospitality, product costs can shift daily. This makes it hard to track spend and control margins in real time.
- Cash flow management: Without visibility into payments and spend, planning becomes little more than guesswork.
- Vendor relationships: Late payments and miscommunications strain partnerships and threaten supply chains.
It’s no surprise that many organizations have turned to AP automation to solve these problems. But most are only partially automated, using tools like OCR for invoice scanning or a vendor portal for data collection. These tools might help with individual pain points, but they don’t solve the full process problem. As a result, benefits quickly plateau.
To truly address these challenges, AP teams need full automation. But for many, that leap can feel daunting.
One of the biggest barriers is resistance to change. People get used to doing things a certain way, and any shift can feel disruptive. Integration complexity is another common hurdle, especially when connecting automation tools to ERPs or other back-office systems. Without overcoming these roadblocks, organizations risk ending up with systems that look modern on the surface, but still run on manual effort behind the scenes.
Now is the time to fully automate
There’s never been a better time to rethink AP processes. But why?
Economic uncertainty continues to put pressure on businesses across industries. This is especially true for restaurants and hospitality, where margins are razor-thin and costs fluctuate daily. In this kind of environment, having real-time visibility into spend is essential for staying profitable.
At the same time, AI is transforming what automation can do. Traditional, rule-based systems have given way to tools like Ottimate that actually learn from your data, flag anomalies, and spot trends humans might miss. That shift allows finance teams to move from reactive problem-solving to proactive decision-making.
For example, rather than waiting for a quarterly review to identify rising ingredient costs, an AI -powered AP platform like Ottimate can alert restaurant operators the moment prices start to go up. These instant insights can help businesses lock in better vendor terms or compare options before higher costs eat into profits.
Lessons from a business that made the leap
Before making the switch to full automation, EHS Business Solutions, a restaurant focused accounting, bookkeeping, and consulting company, was the definition of manual. The team would drive to client sites to pick up paper invoices, key in hundreds of line items, and manually code each one to the right GL account. It was tedious, time-consuming work that was error-prone and nearly impossible to scale.
That all changed once EHS fully automated their AP workflow with Ottimate. With invoices automatically scanned, coded, and routed for approval, the team no longer had to spend hours on manual data entry. That meant they had time to focus on higher-value work, like providing insights to clients, monitoring costs, and advising on strategy.
Reporting also became a competitive advantage. Ottimate’s AI-powered “hot list” feature flags sudden price fluctuations so EHS’s restaurant clients can respond immediately – whether that means negotiating with vendors, locking in pricing, or finding better alternatives.
For EHS, the impact of full, AI-powered AP automation has been dramatic. The team saved up to 75% of time and scaled 5X faster without adding headcount. Embracing full automation with Ottimate has also elevated the company’s role. Instead of being seen as a vendor handling bill payments, they’ve become a strategic partner helping clients run their businesses smarter.
Practical advice for teams starting the journey
Getting started with full automation can feel overwhelming. But it doesn’t have to be.
Whether you’re just beginning to explore automation or looking to modernize an existing setup with AI, a thoughtful approach makes all the difference. These best practices can help you build momentum and see results faster.
Make a strong case
Build your business case by identifying the time, cost, and risk tied up in manual work. Once you quantify the inefficiencies, the ROI of automation will become very clear, very fast.
Fix processes before adding tech
Applying automation to a broken process won’t yield a touchless AP experience. Take time to streamline your workflows first, then layer technology on top.
Focus on change management
Technology will only make an impact if your people use it. Invest in training and communication so everyone understands the “why” and “how” behind the change.
Tailor the experience
The best AP automation tools adapt to different user needs. For example, restaurant managers shouldn’t have to wade through the same interface as accountants. A role-based experience keeps things simple and encourages adoption.
Ask potential vendors the right questions
Go beyond the demo. Ask how the system uses AI and how it learns. Also, ask how invoice capture is done (AI vs. OCR) and whether it integrates end-to-end.
Define your outcomes early
Before speaking with vendors, take time to define your KPIs. Whether you’re focused on cash flow visibility, reduced workloads, or fraud prevention, clear goals ensure you don’t get dazzled by features and instead invest in solutions that’ll deliver real results.
Every automation journey is unique. But the destination is the same: less manual work, better insights, and a stronger foundation for growth.
Ready to transform AP into a growth engine?
Partial AP automation won’t cut it anymore. True efficiency and real business impact only comes from fully automating the entire AP process.
That’s how EHS Business Solutions saved 75% of time, scaled 5X without adding headcount, and transformed AP from a manual task into a strategic advantage.
Ready to make the move to fully automated AP? Book a live demo of Ottimate to see how.