How to achieve greater control over accounts payable

60% of small and medium-sized businesses cite ineffective cash flow management as a major challenge, according to a PYMNTS Intelligence report. Common obstacles such as time-consuming tasks and unexpected delays can make it hard to stay on top of your accounts payable process. The good news? There are tools and strategies that can help you take control and simplify the process. For businesses working with multiple suppliers or handling a lot of transactions, finding ways to simplify payments can make all the difference.

Understanding the needs of businesses today

While manual processes such as mailing checks or reconciling payments by hand are familiar accounts payable methods, they can take up valuable time. According to the report, in the next three years payment volumes are expected to grow by 50%, and invoicing will rise by 46%. Yet, many businesses are still relying on outdated systems that struggle to keep up. 

So, what is preventing businesses from making the switch to more efficient, digital processes? The answer is simple. Adopting new tools isn’t always easy and the uncertainty that comes with change can be a big factor in resisting it. 

Over a third of the businesses surveyed are held back by high costs or the belief that digital processes, like automation, are too complex.

Still, the shift is happening. Around 64% are exploring financial services integrated with software platforms, and over 80% are turning to cloud-based solutions to fix inefficiencies.

The truth is that digital tools are opening doors for better cash management. For example, 32% of U.S. small and medium-sized businesses are already using instant payments to speed up transactions. Accounts payable automation is also becoming a key strategy to simplify workflows.

So what can you do to simplify your business payments?

Here are 4 ways to improve your AP management

1. Establish a clear payment process

First and foremost, a defined payment process is essential for any business. A standardized workflow helps to eliminate confusion and errors while providing a clear path for managing each transaction. Consider these steps to establish an effective payment process:

• Set approval protocols: Designate team members who are authorized to approve payments and set up guidelines around purchase limits, timelines, and spending categories. This helps prevent unauthorized or duplicate payments.

• Outline payment terms with vendors: Clarify your payment terms with vendors, including due dates and early-payment incentives. Consistent terms help you forecast cash flow and maintain healthy vendor relationships.

• Use an end-to-end payment solution: Instead of juggling multiple payment systems, use a single, centralized platform to manage everything in one place. This can provide an overarching view of all payments, simplifying tracking and reconciliation.

Clear processes are a foundational step toward better control over your finances, but it’s also important to leverage technology to achieve even more granular control.

2. Adopt virtual payments for more control over your cash flow

Virtual payments, particularly virtual cards, are a powerful way to achieve greater control, security, and efficiency over business spending. A virtual card is a unique, 16-digit number generated for a single transaction or vendor, and it can be configured with spending limits, expiration dates, and usage restrictions. Virtual cards bring several advantages that traditional payment methods don’t provide:

Greater security

Virtual payments are often considered one of the most secure methods available. By using unique, tokenized card numbers, they prevent sensitive data from being exposed in the event of a breach. Each virtual card can only be used once or for a specific transaction, significantly reducing the risk of unauthorized use. Virtual payments also allow businesses to set permissions and spending limits, further protecting against fraud.

Check out this video to learn more about tokenization.

Simplified reconciliation

One of the biggest challenges with business payments is reconciling transactions. Traditional payment methods can leave room for error and can be time-consuming to track. Virtual payments simplify reconciliation by providing precise details on each transaction, including vendor, amount, and date, making it easier to match payments with invoices and to keep financial records accurate.

Spending controls

Virtual cards allow businesses to set precise spending controls, making it easy to establish limits on individual transactions, vendors, or even spending categories. With these controls in place, businesses can ensure employees or departments stay within budget, prevent unauthorized expenses, and track spending patterns. This control over spending is especially valuable for managing vendor payments or project-related costs, where budget compliance is strict.

Visibility over transactions

Digital processing makes virtual payments more visible, providing insights into cash flow, spending habits, and vendor activity. These insights allow finance teams to quickly adjust spending, identify irregularities, and optimize cash flow. With detailed reporting options available on most platforms, it’s easy to keep a close eye on transactions without waiting for month-end statements.

Incorporating virtual payments into your business can improve your control over spending and provide a clear financial picture at any moment.

3. Use AP automation to streamline payments

Accounts payable (AP) automation is another great tool for making business payments simpler and easier. AP automation software digitizes and streamlines the entire invoice-to-payment process, reducing manual work, minimizing errors, and providing better insight into spending. By automating AP, businesses can improve efficiency, cash flow management, and oversight over financial transactions. 

Many AP automation solutions seamlessly integrate with existing ERP or accounting software, reducing the need for manual data entry and ensuring that all payment information is up-to-date and accurate.

Combined with virtual payments, AP automation creates a streamlined, secure approach to managing business payments.

4. Set up regular financial reviews

Even with the best processes and tools, regular financial reviews are essential for maintaining control over business payments. Schedule monthly or quarterly reviews to assess spending patterns, identify any discrepancies, and ensure compliance with your financial goals. Regular reviews can uncover:

• Overspending or budget Issues: By comparing actual spending to the budget, you can identify areas where spending is off-track and adjust accordingly.

• Vendor payment trends: Tracking vendor payment trends can reveal opportunities for negotiating better terms, such as bulk discounts or early payment discounts.

• Opportunities for improvement: Regular reviews provide insights into the effectiveness of your current payment strategy and help identify ways to improve efficiency, such as adopting new digital payment methods or adjusting your approval process.

Achieving greater control over the accounts payable process is about leveraging technology and staying proactive. Virtual payments, in particular, offer a modern, secure way to manage spending, simplify reconciliation, and enforce spending limits in a way that traditional methods cannot.

With these tools in place, you’re better equipped to make informed decisions, protect against fraud, and position your business for growth.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” button above or submit your email address in the form below.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.

Resources: 
PYMNTS