A practical guide to switching to paperless accounts payable

Paperless accounts payable manages a company's bill payments and invoice workflows entirely in a digital environment. This approach uses software and cloud-based platforms to handle invoices, approvals, and payments instead of relying on mailed paper invoices or traditional check-cutting processes.

A paperless AP process transforms three areas of the typical accounts payable operations. Digital invoices and documentation form the foundation, where invoices arrive electronically through email or supplier portals, while any remaining paper documents get converted using OCR invoice processing. Contracts, purchase orders, and receipts are stored in secure digital databases rather than physical file cabinets, creating a centralized, searchable archive of all financial documents.

Automated invoice processing is the second component, handling much of the manual work traditionally performed by AP staff. Modern platforms use AI-powered data capture to extract key information from invoices, automatically match invoices to purchase orders and receipts, and route documents through customizable approval workflows. These automation tools integrate with existing ERP and accounting software, ensuring that invoice data flows seamlessly into financial systems without duplicate data entry.

Electronic payments represent the third component of paperless AP. Instead of printing and mailing paper checks, companies make payments through ACH transfers, wire transfers, corporate virtual cards, or other electronic payment methods.

Moving to a paperless accounts payable process saves time and money while reducing errors. Finance teams that eliminate manual processes can see immediate improvements in processing speed, cost control, and accuracy that directly impact their bottom line.

Cost savings

Eliminating paper and manual work cuts costs significantly across several different aspects of AP processing. Printing, paper storage, postage, and manual labor expenses add up quickly in traditional AP operations. Manual invoice processing carries substantial costs, with each invoice costing $12.42 to handle through traditional methods compared to just $2.65 for best-in-class teams, according to Ardent Partners' State of ePayables in 2025. This represents a cost reduction of over 75% per invoice.

Companies also capture secondary cost savings through faster processing times. Shorter approval cycles mean fewer late payment fees and more opportunities to capture early payment discounts from suppliers. When invoices move through digital workflows in days rather than weeks, finance teams can take advantage of discount structures that directly improve cash flow.

Improved efficiency

Digital workflows accelerate the AP process dramatically compared to manual systems. Invoice processing cycle times shrink from weeks to days when automation handles routing and approvals. Best-in-class organizations process invoices in approximately 3 days, while companies using manual methods typically require over 13 days for the same tasks, according to Ardent Partners.

Eliminating the need to track down paper invoices means faster approvals and payments, which helps avoid missed due dates and ultimately strengthens vendor relationships. AP staff can focus on exception handling and strategic tasks rather than spending time on data entry and document routing.

Greater accuracy

Manual data entry and paper shuffling leads to costly mistakes including typos, duplicate payments, and lost invoices. A paperless platform with validation rules and two-way matching catches errors and duplicates automatically before they become expensive problems. Automation can achieve accuracy rates between 95% and 99%, according to CFO Tech. Fewer errors save money by preventing overpayments and fraud while reducing the time spent fixing mistakes.

Better compliance

Digital AP processes improve compliance by creating audit trails for every invoice and approval. This documentation proves valuable during audits and helps finance teams demonstrate proper internal controls in accounting.

Enforcing segregation of duties in accounting also becomes simpler when workflows are electronic, since these workflows can require specific approvals per policy automatically. Fraud prevention also improves with secure digital processes that include encryption, access controls, and automated flagging of anomalies.

Visibility and real-time reporting

Having all of your AP data in one digital platform provides finance teams with up-to-the-minute visibility into payables and cash requirements. CFOs can see current liabilities, outstanding approvals, and upcoming payment obligations at a glance. This transparency helps with cash flow forecasting and working capital management.

Paperless processes often include dashboards and reports that analyze spending by vendor, track days payable outstanding, and identify discount opportunities. These analytics help finance teams make data-driven decisions about payment timing and vendor management strategies.

Stronger vendor relationships

Faster, more efficient AP processes can help build relationships with vendors and establish stronger business relationships. When invoices are processed promptly, vendors get paid on time or early, which reduces disputes and builds trust that can lead to better terms or priority service. The ability to consistently capture early payment discounts creates win-win scenarios where suppliers get paid sooner and companies save money.

While moving to a paperless AP process has advantages, it requires careful planning to address several challenges that can result from the transition. Anticipating these obstacles can allow finance leaders to develop strategies to avoid them during implementation.

Initial implementation costs and ROI concerns

Implementing paperless AP software and training staff requires an upfront investment that can be costly. Software licenses, potential hardware purchases like scanners, and training costs create immediate expenses before any benefits materialize.

The long-term savings typically justify that initial investment. If you reduce processing cost per invoice and handle thousands of invoices annually, the ROI becomes clear quickly. Finance teams should focus on total cost of ownership and calculate how quickly the platform pays for itself through quick and more efficient processing as well as error reduction.

Change management and training

Employees who have manually processed paper invoices for years may resist new workflows or be concerned about job security. AP staff might fear that automation will eliminate their roles, creating resistance to the new paperless process.

Successful transitions involve the AP team early in the planning process and show them how the new software makes their jobs easier rather than obsolete. Staff should understand that the new platform can shift their work from manual data entry to higher-value tasks like forecasting and vendor analysis. A phased approach can be effective, starting with automating part of the process or a subset of vendors to build confidence before expanding to full implementation.

Integration with existing financial stack

The best AP automation software must work seamlessly with current ERP, accounting systems, and procurement software to avoid creating data silos. Poor integration can end up making your AP process less efficient if staff must manually transfer data between systems. The best solutions offer connectors and API integrations with popular accounting systems and ERPs like NetSuite, Sage, QuickBooks, and others. However, setting up these integrations may require IT support and careful testing to ensure data flows correctly. Choosing software with proven integration capabilities for your specific accounting system reduces implementation risks.

Supplier adoption

Not all of your vendors will immediately switch to submitting invoices electronically. Many may continue sending paper invoices or basic PDF attachments via email, requiring your business to maintain dual processes during transition periods. To help this transition, communicate proactively about new invoice submission methods and provide support to help suppliers adopt electronic processes. Your business may need to scan remaining paper invoices while gradually onboarding vendors to digital submission methods.

Security and compliance concerns

Moving sensitive financial data to cloud-based platforms raises security questions for some finance professionals. Reputable AP systems include strong security features like encryption, multi-factor authentication, and regular security audits. Digital records often improve security by eliminating checks and confidential information sitting on desks or in mailrooms where documents can be lost or stolen.

Effective implementation of a paperless AP process involves taking several key steps, from assessing your current process to training your team on new tools.

1. Assess your current AP process

Understanding how your company's accounts payable operates currently allows you to successfully implement a new workflow. This includes identifying pain points like how invoices arrive, typical approval bottlenecks, monthly invoice volume, error rates, and average processing time. Map your current workflow to pinpoint inefficiencies such as chasing approvals or high exception rates.

Establish baseline metrics like cost per invoice, days to process, and accuracy rates since these measurements will help you demonstrate improvement later and justify the project investment. Document which vendors send paper versus electronic invoices and identify your highest-volume suppliers who should be prioritized for digital onboarding.

2. Secure executive buy-in

Support from your leadership team, such as the CFO or Controller, is critical for successful implementation. Prepare a business case highlighting the ROI using cost and efficiency data, emphasizing how the project ties to strategic goals like cost reduction, better financial controls, and improved scalability for growth. Leadership support also helps ensure company-wide cooperation during the transition.

3. Choose the right AP automation solution

Selecting the right accounts payable software requires evaluating options based on features, integration capabilities, and cost. Key features should include OCR, automated accounts payable reconciliation, custom approval workflows, real-time reporting, and integration with your existing ERP.

Be sure to also consider vendor reputation, customer support quality, and implementation assistance as these can directly affect how effective your platform is. Look for solutions that offer proven integrations with your current accounting systems and can scale as your business grows. The software should also provide strong security protocols and compliance features that meet your industry requirements.

4. Digitize invoices and documents

Digitize any existing physical documents before or during implementation. This can include scanning paper invoices in backlog, uploading vendor master data, and setting up electronic invoice receipt through centralized email addresses or supplier portals.

As you digitize, establish a standardized process for any paper that continues to arrive. Many companies designate daily scanning procedures and use OCR invoice processing to expedite data entry. Create an electronic archive for historical invoices so paper files can eventually be stored off-site or destroyed, depending on your record-keeping regulations.

5. Design and customize workflow

Configure your software to mirror or improve your current approval processes. Set up approval hierarchies based on invoice amounts, define rules for matching POs and receipts, and establish exception handling procedures for mismatched or high-value invoices. As a part of this process, consider how you can streamline your workflows. For instance, if your paper process required five signatures, you might simplify to three approvals in the digital workflow without sacrificing control.

6. Pilot test and phase the rollout

Rather than immediately moving all invoices to a new process, run a pilot with one department or small group of vendors first. This approach lets you work out integration issues, ensure accounting system connectivity works properly, and gather user feedback. As a part of this process, monitor key metrics during the pilot like processing time and error rates compared to the old process. Accounts payable process improvement often happens in steps through these phased implementations.

7. Train employees and stakeholders

Even excellent software doesn’t work if people don't use it properly. Provide training for your AP team and anyone involved in invoice approvals, and be sure to cover how to navigate the interface, electronic approval processes, and procedures for handling exceptions.

While training employees, educate vendors about the new invoice submission methods and communicate the benefits like faster payments to encourage adoption. Consider providing vendor guides or helpdesk support during the transition. Clear communication about timeline and expectations helps the change management process.

8. Monitor, support, and optimize

The implementation process doesn't end once your new platform goes live. Set up ongoing monitoring of key performance indicators like average processing time, cost per invoice, and exception rates. Regular review of these metrics helps find ways to improve and areas that need adjustment.

Gather feedback from users about remaining pain points or manual workarounds. Most platforms need some fine-tuning like adjusting approval rules or adding vendor integrations. Focus on continuous improvement and keep executive sponsors informed of progress, especially ROI achievements like cost savings realized and productivity gains.

As you look for a paperless accounts payable solution, consider each platform’s features and capabilities to ensure the solution meets their needs. The right software can make the difference between a smooth digital transformation and a costly implementation that doesn’t benefit your business.

Integration with ERP or accounting systems

Seamless integration is one of the most important aspects of any AP automation solution. The platform should connect directly with your general ledger or ERP so that invoice data, supplier information, and payment status flow automatically without duplicate data entry. This integration ensures financial reports stay current and helps eliminate any data silos.

Automation and intelligence

Your AP software should minimize manual work through automation features. Look for AI-driven data capture that reads invoices automatically, invoice matching capabilities that compare invoices to purchase orders and receipts, and automated approval routing based on your business rules.

Top solutions offer machine learning suggestions like auto-coding expenses to GL accounts and identifying duplicate invoices before processing. The more the system can handle independently with rules and AI, the less chance of human error and the more time your team saves for more strategic work.

User-friendly interface

Adoption depends on how usable the platform is. While a complex or poorly designed interface can derail even the best automation strategy, a clean, intuitive user interface with easy search functionality, clear invoice viewing, and mobile access for approvals encourages consistent use across the organization. Look for dashboards that provide quick access to pending approvals, payment status, and key metrics. Mobile capabilities also allow approvers to handle invoices from anywhere, speeding up the approval process.

Security and compliance

AP software handles sensitive financial information, so security features are crucial for an effective platform. Look for data encryption, role-based access controls, multi-factor authentication, and comprehensive audit trails to protect against unauthorized access and potential fraud. Be sure that the compliance capabilities help satisfy regulatory requirements and internal controls such as segregation of duties.

Scalability and flexibility

Choose a solution that can scale with your business. If invoice volume doubles or you expand internationally with multi-currency needs, the software should handle increased demands without any issue. Cloud-based solutions often are the most scalable since they can easily add users and storage capacity.

The system should also be able to adapt to changing business needs. Look for flexible workflow configuration, the ability to add new approval processes, and integration options for additional features like purchase order management or spend management if they become necessary later.

Analytics and reporting

Insights from AP data can allow finance leaders to make informed decisions. Look for real-time dashboards and reports that show metrics like total spending by vendor, pending liabilities, and discount opportunities. Accounts payable metrics help identify process improvements and benchmark performance. Some platforms also offer predictive analytics like forecasting cash requirements based on pending invoices or identifying approval bottlenecks.

Vendor portal and customer support

A supplier portal allows vendors to submit invoices electronically and check payment status independently, reducing the need to call and email to your AP team. Even without a full portal, consider how the software supports vendor communication like automated payment notifications.

In addition to a supplier portal, evaluate how the software vendor could support your business through implementation. Consider the vendor’s customer support and training offerings as strong support from the vendor can significantly reduce implementation time and ongoing operational issues.

Making your accounts payable process paperless has strategic implications for CFOs and finance teams. As automation and AI become standard in finance departments, digitizing AP processes allows finance teams to be strategic business partners, representing the evolution of accounts payable from a paper-pushing function to a streamlined digital operation.

The most immediate strategic benefit comes through improved cash flow control. Real-time visibility into outgoing payments and liabilities allows CFOs to manage cash flow more proactively, using payment automation to take advantage of early-pay discounts when cash is available or holding payments to optimize working capital when needed. Ultimately, this connects AP automation directly to corporate treasury management, enabling CFOs to make data-driven decisions about spend since they can trust the accuracy and timeliness of AP data.

Financial reporting accuracy also improves significantly with paperless processes. When invoices and payments are recorded promptly, CFOs can confidently sign off on financial statements since AP liabilities are correctly captured in real time, reducing the risk of surprises during financial close processes. Audits become smoother when documentation is accessible through digital databases, and the month-end close process improves as a result of having AP data available instantly.

Risk reduction is another advantage, particularly for CFOs responsible for company assets. Electronic workflows provide better fraud protection through dual controls enforced by the software, eliminate blank checks sitting in offices, and create comprehensive audit trails for every transaction. Compliance with regulatory requirements like SOX internal controls also become automatic when the platform enforces approval hierarchies and maintains timestamped records.

This elimination manual work allows finance teams to use resources for strategic activities. When AP staff aren't managing paperwork, they can focus on higher-value work like vendor analysis, cost reduction strategies, and process improvement initiatives. Top-performing AP teams reduce invoice processing times by over 75%, according to Ardent Partners, allowing teams to concentrate on supplier relationship management and spend analysis rather than data entry and document routing.

Perhaps most importantly for growing companies, scalable paperless systems eliminate the bottlenecks that manual AP processes create. Traditional paper-based workflows often require proportional increases in headcount to handle more invoices from more vendors, while digital systems allow finance infrastructure to support your business scaling expansion without cost increases.

Accounts payable is evolving from a paper-based function to a streamlined digital operation, and companies that embrace paperless AP position themselves for improved efficiency and control. Going paperless yields significant benefits including cost reduction, faster processing, fewer errors, and improved cash flow management that directly impact a business’s financial performance.

While implementation challenges exist, proper planning and leadership support can ensure they don’t stand in the way of your business. The payoff in transparency, efficiency, and strategic value far outweighs the initial investment and temporary disruption. As automation and AI become standard in finance departments, paper-based AP is quickly becoming outdated, and companies that delay the transition risk falling behind competitors.

For AP teams looking to go paperless, the Brex spend management software offers a unified solution to paperless accounts payable processing. With Brex, your business can automate and streamline the AP process, from vendor onboarding to payment processing. Invoices are automatically digitized and processed, and then routed through custom approval workflows depending on predetermined conditions. Once an invoice is approved, a payment is automatically created.

Integrated corporate credit cards mean you can generate ghost cards for single transactions, preventing fraud and ensuring spend control. Or, you can use Brex’s business banking accounts and send payments via check, wire, or ACH for no fee. This unified platform with robust automations transforms AP processes, as Empire Portfolio Group, a franchisee of Orangetheory Fitness, has found.

“With Brex, we’ve seen a huge shift in accounts payable from being a back-office data entry function to a powerhouse of information that creates a decision-maker and stakeholder,” Tiffany Miller, Director of Accounts Payable at Empire Portfolio Group, said. “Now we have the tools to easily run information to the C-suite … It’s why we needed Brex — to see in real time what’s being spent across multiple locations.”

With proven implementations and industry-leading security standards, Brex provides the reliability and scalability that finance teams need to support business growth. Schedule a demo of Brex to see how you can digitize your accounts payable process and position your finance team for the future.