What are accounts payable best practices?
Accounts payable best practices are proven methods that help finance teams manage invoices, approvals and payments with fewer errors and delays.
They focus on:
- Clear processes
- Strong controls
- Faster approvals
- Better visibility
If your current workflow feels slow or inconsistent, these practices will help you fix it.
For a full breakdown of how the process works, see our guide to accounts payable processing.
Why accounts payable best practices matter
Poor AP processes lead to:
- Late payments
- Duplicate invoices
- Supplier disputes
- Lack of audit trail
Strong processes give you:
- Control over spend
- Faster month-end close
- Better supplier relationships
According to Deloitte, inefficient AP processes increase processing costs and error rates.
1. Standardise your accounts payable process
Start with consistency.
Every invoice should follow the same path:
- Invoice received
- Data captured
- Matched to PO
- Approved
- Paid
Document this clearly.
If your team handles invoices differently, errors will creep in.
This is the foundation of effective accounts payable processing.
2. Use purchase orders for control
No PO. No pay.
This simple rule prevents:
- Unauthorised spending
- Budget overruns
- Approval confusion
A structured PO process gives you:
- Pre-approved spend
- Clear audit trail
- Better supplier communication
Explore how purchase order software helps enforce this.
3. Automate invoice capture
Manual data entry slows everything down.
Use OCR to extract:
- Supplier name
- Invoice number
- Amounts
- Dates
This reduces:
- Human error
- Processing time
Learn more about invoice processing and how automation improves accuracy.
4. Set up structured approval workflows
Approvals should be:
- Role-based
- Value-based
- Automated
Avoid:
- Email approvals
- Verbal sign-offs
- Bottlenecks
Use invoice approval software to:
- Route invoices automatically
- Track approvals
- Reduce delays
5. Enforce three-way matching
Match:
- Invoice
- Purchase order
- Goods received
This ensures:
- You only pay for what was ordered
- You only pay for what was delivered
Without this, overpayments are common.
6. Track invoices in real time
You should always know:
- Where an invoice is
- Who needs to approve it
- When it will be paid
Lack of visibility causes:
- Supplier queries
- Internal delays
Use dashboards to monitor your accounts payable processing in real time.
7. Schedule supplier payments
Avoid manual payments.
Set up scheduled supplier payments to:
- Pay on time
- Maintain cash flow control
- Avoid rush decisions
This also reduces fraud risk.
8. Reduce duplicate and fraudulent invoices
Put controls in place:
- Duplicate invoice detection
- Supplier validation
- Approval thresholds
Automation tools can flag:
- Same invoice number
- Same amount
- Same supplier
This protects your business.
9. Keep a clear audit trail
Every action should be recorded:
- Who approved
- When it was approved
- What changed
This is essential for:
- Audits
- Compliance
- Internal reviews
Digital systems make this easy.
10. Review and improve regularly
Your AP process should not stay static.
Review:
- Processing time
- Cost per invoice
- Error rates
Ask:
- Where are delays happening?
- What can be automated next?
Continuous improvement keeps your process efficient.
Martin Peirce
Founder and CEO
How automation supports accounts payable best practices
Manual processes make these best practices hard to maintain.
Automation helps you:
- Enforce rules
- Reduce errors
- Speed up approvals
- Improve visibility
Using Accounts Payable automation software gives you full control over your process.
You can also explore Zahara’s AP Automation features to see how this works in practice.
Common mistakes to avoid
Avoid these:
- Relying on email approvals
- Processing invoices without POs
- Manual data entry
- Lack of reporting
- No ownership of the AP process
Fixing these quickly improves performance.
Final thoughts
Strong accounts payable best practices give you:
- Control
- Speed
- Accuracy
They also support a more reliable accounts payable processing workflow.
If your current process is slow or inconsistent, start with:
- Standardisation
- Automation
- Clear approval workflows
FAQs
What are accounts payable best practices?
They are proven methods that improve how invoices are received, approved and paid, reducing errors and delays.
How can I improve accounts payable processing?
Start by standardising workflows, using purchase orders, and introducing automation tools.
What is the biggest issue in accounts payable?
Manual processes. They cause delays, errors and lack of visibility.
How does automation help accounts payable?
It reduces manual work, speeds up approvals and improves accuracy across the entire process.
Call to action
If you want to improve your accounts payable process, explore Zahara’s tools or book a demo to see how automation can support your team.
