Published: Feburary 2025
Managing accounts payable (AP) is a cornerstone of financial health and operational efficiency. Ensuring suppliers are paid promptly while minimising manual tasks strengthens supplier relationships, optimises cash flow, and enhances productivity.
Businesses that streamline AP processes often achieve significantly faster payment cycles and notable cost reductions. For Australian SMEs and high-growth startups, modernising AP delivers a competitive edge. This guide outlines six strategies to streamline AP, ensuring seamless bill payments and sustainable savings in 2025.
Prompt supplier payments are vital for operational continuity, fostering trust and securing favorable terms. Many Australian SMEs rely on strong supplier relationships to maintain smooth operations. Timely payments deliver multiple benefits:
Manual AP processes are prone to inefficiencies, with many SMEs reporting frequent errors or delays in 2024. These challenges hinder financial performance:
Modernising AP through automation and streamlined processes boosts accuracy and efficiency. Below are six strategies to transform your AP operations:
Automation eliminates repetitive tasks, reducing processing time significantly.
Digital workflows accelerate approvals, shortening cycles and preventing bottlenecks.
Electronic payments streamline transactions, with 60% of SMEs adopting them in 2024 to enhance efficiency (Business Australia, 2024).
Optical Character Recognition (OCR) digitises paper invoices, streamlining data entry.
Self-service portals allow suppliers to submit invoices and check statuses, reducing inquiries by 50%.
Analytical tools provide visibility into payment cycles, improving cash flow management.
A streamlined AP process delivers significant advantages, transforming financial operations:
Efficient accounts payable management is essential for Australian SMEs and startups in 2025. By adopting automation software, streamlining approvals, enabling electronic payments, implementing OCR, leveraging supplier portals, and monitoring cash flow, businesses can significantly reduce manual work, ensure timely supplier payments, and achieve substantial savings. Companies like XYZ Company demonstrate the power of modernisation—automation and portals streamlined operations while strengthening supplier ties. Start by auditing your AP process and adopting one or two strategies, such as automation or electronic payments. With disciplined execution, you’ll optimise cash flow, enhance supplier relationships, and gain a competitive edge in a fast-paced market.
Q: Why is it important for Australian businesses to pay suppliers on time?
A: Timely payments help maintain operational continuity, strengthen supplier trust, avoid late penalties, and can unlock early payment discounts that improve cash flow.
Q: What are the risks of managing accounts payable manually?
A: Manual processes often lead to data entry errors, slow approvals, lack of payment visibility, and increased administrative costs, all of which can disrupt cash flow and vendor relationships.
Q: How can automation improve accounts payable processes?
A: Automation software reduces manual tasks, cuts errors, speeds up invoice approvals, and integrates with accounting platforms like Xero, improving overall efficiency.
Q: What tools help streamline supplier payments?
A: Businesses use electronic payment platforms (e.g. Airwallex, Wise), OCR scanning tools (e.g. ABBYY), and supplier portals (e.g. Coupa) to digitise processes and reduce admin effort.
Q: What is OCR and how does it help with invoice processing?
A: OCR (Optical Character Recognition) scans paper invoices and extracts key data, reducing manual data entry, improving accuracy, and accelerating invoice processing.
Q: How can SMEs monitor and manage AP cash flow effectively?
A: SMEs can track payment cycles using Xero analytics, monitor Days Payable Outstanding (DPO), and use data to prioritise discounts and manage supplier terms strategically.
Q: What’s the average investment required to improve AP systems?
A: Most SMEs spend between $5,000 and $15,000 annually on automation tools, portals, and training - costs that often pay back within 6–12 months through savings and improved processes.
Scale Suite provides flexible finance solutions for SMEs, including accounts payable support. Our team can assist with implementing automation tools, setting up approval workflows, integrating payment systems, and building efficient reporting processes. We work alongside your existing finance function or bookkeeper to help reduce manual work and improve supplier management without long-term contracts.
For businesses looking to streamline AP, Scale Suite offers tailored, month-to-month services designed to support growth and free up internal resources.
This article was reviewed by the Scale Suite team and reflects information current as of February 2025. We periodically review and update our articles to ensure ongoing accuracy.
Scale Suite delivers finance and human resource services to support the growth of Australian businesses. Our Sydney-based team creates custom packages tailored to your needs, seamlessly integrating with your existing teams. From comprehensive finance services and strategic business support to recruitment and HR services, we reduce costs, save time, and help you scale confidently.
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