From Cost Center to Strategic Asset: Transforming AP

Finance leaders are constantly asked to do more with less; but slashing budgets isn’t the only solution. There’s untapped value hidden in your existing AP processes. Manual, slow-moving workflows don’t just delay payments—they tie up working capital, limit financial visibility, and cause missed opportunities like early payment discounts. Delayed approvals also introduce financial risks and strain supplier relationships.

AP automation changes the equation. It’s not just about processing invoices faster; it’s about creating financial agility, optimizing payment strategies, and turning AP from a cost center into a profit-driving asset. For finance leaders focused on maximizing resources, that shift can make all the difference.

The Hidden Drain on Your Bottom Line

AP bottlenecks go beyond daily frustrations—they’re a hidden drain on resources. Every manual step adds up: invoices stuck in email, delayed approvals, and missing documents that create costly hurdles.

Companies processing 10,000 invoices annually can spend 1,600 hours (200 full workdays!) on manual tasks like data entry and chasing approvals—costing upwards of $40,000 in labor alone. Factor in missed early payment discounts, late fees, and strained supplier relationships, and the true cost skyrockets.

But that’s just the start:

• Increased Fraud Risk: In 2023, 80% of organizations faced payment fraud attempts, with 65% affected by check fraud.
• Employee Burnout & Turnover: Manual tasks wear teams down, leading to higher turnover and recruitment costs.
• Limited Scalability: Growing businesses quickly outpace manual AP processes, leading to operational slowdowns.
• Delayed Financial Reporting: Lack of real-time data hinders decision-making and slows reporting.

The longer inefficiencies go unchecked, the more they quietly chip away at your bottom line. But there’s a solution that not only stops the bleeding—it actively boosts profitability.

Companies that embrace AP automation can cut manual processing time by 70-80%, unlock early payment discounts, reduce fraud risks, and free up teams to focus on higher-value tasks. It’s not just about streamlining workflows; it’s about protecting your financial health.

Real-world examples show the power of this shift.

Take JetBlue, for example. Managing over 51,000 invoices a month from thousands of suppliers left their AP team buried in manual processes. By implementing onPhase’s intelligent AP system and dynamic discounting, they achieved an 89% touchless processing rate—cutting manual errors and freeing up time for more strategic work. Check out the full story to see how they did it.

JetBlue’s success shows what’s possible when AP is treated as a strategic asset—not just a cost center. But they’re not the only ones who can benefit. Here’s how automation empowers finance teams to turn AP into a profit driver.

Turning AP from a Bottleneck into a Profit Center

Accounts payable has long been viewed as a cost center—focused on processing invoices, avoiding late fees, and keeping the lights on. With the right approach, AP can transform from a cost-heavy process into a strategic profit center. By eliminating manual tasks, improving accuracy, and increasing visibility, companies can turn AP into a competitive advantage that boosts earnings.

When AP teams have the right tools, they shift from simply paying bills to actively managing cash flow, capturing early payment discounts, and optimizing financial operations. The result? AP becomes a catalyst for growth; not just a cost to manage.

Here’s how automation delivers measurable financial wins:

• Capture Early Payment Discounts: Many suppliers offer incentives for early payments (e.g., 2% off if paid within 10 days). Automation ensures these savings aren’t missed.
• Optimize Payment Timing (DPO): Digital AP solutions help teams strategically time payments to maximize working capital while avoiding late fees.
• Electronic Payments & Rebates: Switching from checks to ACH or virtual cards speeds up payments and can unlock cashback rebates from payment providers.
• Supply Chain Financing Options: A connected AP system provides access to financing options that improve cash flow while ensuring suppliers are paid on time.
• Fraud Prevention & Cost Protection: Automated systems flag duplicate invoices, unauthorized payments, and anomalies that could indicate fraud—reducing financial losses and protecting company funds.
• Audit-Ready Records (No More Scrambling!): Streamlined AP platforms create a digital paper trail, simplifying audits and reducing compliance headaches.

These measurable gains are just the beginning. When AP becomes a strategic asset, finance leaders can unlock long-term value that extends well beyond simple process improvements.

The Future of AP: From Expense to Competitive Advantage

Finance leaders who embrace AP automation aren’t just streamlining workflows—they’re safeguarding their company’s financial future. Sticking with outdated AP methods leads to lost discounts, late fees, higher processing costs, and missed opportunities to optimize cash flow. onPhase's solutions eliminate these inefficiencies, boost financial control, and unlock new savings that fuel growth.

The real question isn’t whether you can afford to automate—it’s whether you can afford not to. 

Ready to see AP automation in action?
Schedule some time with one of our automation experts to discover how onPhase helps finance teams “phase” out inefficiencies, close the books faster, streamline payments, and simplify supplier onboarding—all in one platform.