In an era where engaging with global supply chains has become a dizzying risk-reward gambit, the accounts payable (AP) function has emerged as a crucial strategic asset. What was once seen as a purely administrative department now stands at the intersection of financial resilience and supply chain stability — with the ability to either strengthen a business’s competitive position or pile on vulnerabilities.
Forward-thinking organizations have recognized this shift. They've transformed their AP operations from back-office cost centers into value-drivers that not only help navigate supply chain complexities but also deliver on improved cash flow management, stronger supplier partnerships and data-driven decision making.
What exactly distinguishes these best-in-class AP teams from their peers? The exclusive Ardent Partners' "AP Metrics that Matter in 2025" report, which Pagero was proud to sponsor this year, reveals performance indicators that demonstrate how finance leaders are seizing opportunities and widening margins with the help of AP automation. Let’s explore three of the best-in-class performance benchmarks we found most compelling.
Metric #1: Processing speed — 82% faster invoice handling
How quickly does your team move an invoice from receipt to payment-ready status? According to Ardent Partners’ findings, for best-in-class organizations, the answer is just 3.1 days — a remarkable 82% faster than the industry average of 17.4 days.
This dramatic difference isn't about working harder — it's about working smarter through automation. Top-performing teams leverage fully digitalalized, automated workflows to:
Instantly capture and extract invoice data
Automatically route approvals to the right people
Eliminate manual data entry and paper handling
The business impact extends far beyond speed. Faster processing unlocks early payment discounts, strengthens supplier relationships and gives your finance team greater visibility into cash flow, which are all critical advantages in uncertain economic times.
Metric #2: Cost efficiency — 80% lower processing costs
Every invoice your team processes has a price tag attached. For the average organization, that cost sits at $9.40 per invoice — a figure that quickly multiplies into significant expense when processing thousands of invoices monthly.
Best-in-class AP teams, however, have slashed these costs by an impressive 80% through strategic automation. By digitalizing their invoice intake and approval workflows, they've eliminated the expensive manual handling that drives up costs.
For a mid-sized business processing 30,000 invoices annually, achieving best-in-class cost efficiency could mean over $150,000 in annual savings that can be redirected to growth opportunities. But this goes beyond saving pennies — it's about freeing up substantial budget for more strategic initiatives.
Metric #3: Exception rates — 59% fewer problematic invoices
Perhaps the most telling metric of AP excellence is the exception rate — the percentage of invoices that get flagged for errors, missing information or approval issues. These exceptions create bottlenecks that slow down your entire AP operation.
The Ardent Partners' analysis reveals that best-in-class teams maintain an exception rate of just 9%, compared to 22% for other organizations. This 59% reduction in exceptions means far less time spent on:
Hunting down missing information
Correcting coding errors
Managing approval bottlenecks
Resolving supplier inquiries
By minimizing exceptions through automation, top-performing AP teams free their staff from reactive firefighting and enable them to focus on more strategic financial activities like cash flow optimization and supplier relationship management.
How to achieve best-in-class AP performance
The path to AP excellence doesn't require a complete system overhaul. With the right automation partner, your team can begin capturing these same benefits by connecting people, systems and data to get accounts payable workflows running on autopilot.
By connecting your financial system to an e-invoicing network, such as the Pagero Network, you can boost the number of e-invoices you receive and have other formats delivered digitally. This connected approach helps you:
Reduce manual data entry and associated errors
Accelerate approval workflows through automatic routing
Gain real-time visibility into invoice status and payment timing
Ensure compliance with evolving e-invoicing mandates worldwide
The best part? These improvements don't just benefit your AP team — they create ripple effects throughout your organization, from improved supplier relationships to better cash management and reduced compliance risk.
AP is better connected
As we move through 2025, AP teams that embrace automation aren't just keeping pace — they're setting it. By focusing on these three critical metrics, your AP function can transform from a processing center into a strategic asset that drives measurable business value.
The most successful organizations recognize that modern AP goes far beyond paying bills — it's about optimizing cash flow, strengthening supplier relationships and contributing directly to profitability. With the right e-invoicing solution, your team can join the ranks of best-in-class performers.
