Breaking Down Barriers: Solving Common Operational Challenges in Accounts Payable

Managing Accounts Payable (AP) is vital to every school's financial operations, ensuring that suppliers are paid accurately and on time, budgets are adhered to, and cash flow is effectively managed to support the smooth running of the school’s day-to-day activities. However, many finance teams face ongoing challenges that impact efficiency, accuracy, and control, ranging from manual, paper-based workflows to limited visibility over payments and approvals. These issues can slow operations, create compliance risks, and strain supplier relationships.

The good news? With the right technology, schools can overcome these hurdles. AP automation offers a more intelligent, more streamlined approach to managing payments, resulting in reduced manual effort, improved transparency, and boosted financial control.

So, what are the most common AP challenges schools face today, and how can automation help solve them?

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Challenge 1: Manual and Paper-Based Processes  

Many finance teams still use paper invoicing and data entry in their AP processes. This causes inefficiencies, delays, and mistakes. Handling invoices by hand is not only time-consuming but also raises the chance of losing documents, making duplicate payments, and having data errors. These issues can greatly disrupt your school's financial operations.    

Solution: Implementing automated accounts payable processes eliminates the need for paper-based processes by digitising invoices, approvals, and payments. Automation platforms streamline data entry, validate invoices against purchase orders, and route approvals electronically, reducing processing time and human errors.  

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Challenge 2: Lack of Visibility and Control  

Tracking invoice statuses, approvals, and payments can be challenging without a centralised AP system. This lack of transparency leads to delayed payments, strained supplier relationships, and potential compliance issues.  

Solution: A cloud-based AP automation solution provides financial management by offering real-time visibility into invoice lifecycles, approvals, and payment statuses. Finance teams can access dashboards and reports to monitor outstanding liabilities, ensuring better payment methods, financial control and audit readiness.  

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‍Challenge 3: Slow Approval Workflows  

Invoice approvals often require multiple sign-offs, but these workflows can become bottlenecks when done manually. Approval delays lead to missed payment deadlines, late fees, and cash flow disruptions.  

Solution: Automated approval workflows route invoices instantly to the correct approvers. Customisable rules can prioritise urgent payments and set up escalations for overdue approvals, keeping processes on track.  

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Challenge 4: High Risk of Fraud and Compliance Issues  

AP fraud, such as duplicate or fake invoices, remains a significant risk for schools and their financial health. Additionally, ensuring compliance with financial regulations and internal policies can be complex without standardised procedures.  

Solution: Automation helps AP teams prevent fraud. It does this by using three-way matching of invoices, purchase orders, and receipts. It also flags duplicate invoices and keeps a digital audit trail. Compliance features ensure that financial transactions align with policies and regulatory requirements.  

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Challenge 5: Inefficient Supplier Communication and Management  

Managing supplier inquiries, disputes, and payment tracking manually can be time-consuming. Without a streamlined communication process, suppliers may experience payment delays and frustration.  

Solution: A supplier portal integrated with AP automation allows vendors to submit invoices electronically, track payment statuses, and communicate efficiently with finance teams. This reduces back-and-forth emails and makes managing vendor relationships easier and creates potential for early payment discounts and cost savings.

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Challenge 6: Lack of Budget and Cash Flow Insights

When AP processes operate in silos, finance teams struggle to gain real-time insights into expenses, making it difficult to manage budgets and forecast cash flow.

Solution: AP automation platforms provide detailed reporting and analytics, offering visibility into spending patterns, upcoming liabilities, and financial forecasts. This empowers finance teams to make data-driven decisions and improve budget planning.

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Overcoming AP Challenges with the Right Technology

Adopting an AP automation solution transforms the efficiency, accuracy, and security of financial processes. Schools and businesses leveraging Alii's AP automation platform have seen significant improvements, such as:

• Brisbane Grammar School: Saved 20 minutes per order, ensuring 100% compliance on purchase orders with over 800 invoices processed monthly.

• Salesian College Chadstone: Reduced printing by 96%, streamlining invoice approvals and payments across multiple locations.

Breaking down operational barriers in AP requires a shift from manual, paper-based workflows to intelligent, automated solutions. By leveraging automation, organisations can improve efficiency, enhance financial transparency, and reduce risks.

If your AP team is struggling with inefficiencies, compliance challenges, or slow approval processes, it's time to explore a better way forward. Contact Alii today to learn how our AP automation platform can transform your operations and ensure seamless, stress-free financial management.