For many Canadian businesses, the accounts payable (AP) process is seen as a necessary administrative task. But if you’re still relying on outdated, manual workflows, your AP system could be silently draining your resources and impacting cash flow.
Here are 10 signs your payables process may be more expensive—and less efficient—than you realize:
1. You’re Still Writing and Mailing Cheques
If your team is manually cutting cheques, stuffing envelopes, and paying for postage, you’re spending far more than you need to—both in dollars and employee time.
2. Approvals Are Stuck in Silos
Do invoices sit on desks or get lost in email threads waiting for sign-off? Delayed approvals can lead to missed due dates, damaged supplier relationships, and extra effort chasing things down.
3. You’re Manually Entering the Same Information More Than Once
Entering vendor bills into your accounting software, then sending them around for approval, and again during payment? Duplicate data entry increases the risk of mistakes and wastes valuable time.
4. There’s No Audit Trail
If it’s hard to see who approved what and when, you’re lacking visibility and control. This opens the door to accidental overpayments or internal fraud.
5. You’re Losing Out on Vendor Incentives
Some suppliers offer early payment discounts (often 2% net 10). Without an efficient workflow, it’s easy to miss out—leaving money on the table.
6. You’re Paying Late Fees
When bills fall through the cracks, your company may face interest charges, late penalties, or damaged credit terms. A streamlined system helps keep payments on schedule.
7. Your Process Can’t Be Managed on the Go
If invoice approvals can’t be done from a mobile device or outside the office, everything slows down when key decision-makers are unavailable or working remotely.
8. Cheque Fraud Is a Growing Risk
Cheque fraud remains one of the most common forms of financial theft in Canada. Transitioning to secure electronic payments helps mitigate this risk.
9. Your Finance Team Is Always Playing Catch-Up
If your AP staff is buried in paperwork and repetitive tasks, they’re likely underutilized. Automation allows your team to focus on higher-value work like reporting and planning.
10. Closing the Books Takes Too Long
A disorganized AP process makes month-end a stressful ordeal. Reconciling payments, tracking liabilities, and ensuring accuracy should not take days.
Take Control with SparcPay
SparcPay eliminates the paper chase by digitizing invoice approvals and enabling secure, electronic payments—all integrated with your accounting platform. Whether you’re in the office or on the go, you can review and approve payables with just a few clicks.
If any of the pain points above sound familiar, it’s time to rethink your AP strategy.