Managing accounts payable (AP) is no longer just about paying invoices - it’s a strategic lever for cash flow, vendor relationships, and financial stability. For CFOs and finance teams of businesses operating internationally, inefficient AP processes can trigger late payments, costly manual errors, and costly inefficiencies that ripple across departments.

Automation is transforming accounts payable, a function traditionally dependent on manual processes. According to the Institute of Financial Operations & Leadership, only 9% of AP teams are fully automated today. That being said, this number is expected to rise significantly by 2026, with two-thirds of finance teams anticipating full automation.

This shift isn’t just about reducing manual work; it’s about giving finance leaders the ability to track, analyze, and optimize critical accounts payable metrics immediately, and still with great precision. Having the right data in real-time will give finance teams actionable insights into bottlenecks, inefficiencies, and opportunities for improvement.

But what is the right data? Here’s five must-know AP metrics or KPIs finance teams should prioritize in 2025 in order to stay nimble and stay at the forefront in an always-moving global marketplace. 

Considering the baseline of AP metrics and how to go beyond them

The foundational KPIs for AP operations and finance teams give CFOs and finance teams the clarity needed to identify what’s working and where adjustments are necessary.

Most organizations are looking at AP metrics in these three categories:

• Operational metrics: Measure the efficiency of internal processes, such as invoice processing times and staff productivity.
• Financial metrics: Evaluate the financial impact of AP activities, including costs per invoice and savings from early payments.
• Supplier metrics: Assess the health of vendor relationships, tracking factors like the number of disputes and adherence to payment terms.

These are the table stakes. They’re important. But for significant impact, remaining close to the next five AP metrics will be the difference in staying afloat in the global market, or taking the lead in year ahead.

The top 5 accounts payable metrics to track in 2025

Focusing on these five key metrics will help finance leaders optimize processes, improve efficiency, and drive powerful strategic value in 2025.

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Actioning AP metrics to power AP performance

Improving AP performance requires more than just tracking metrics—it demands actionable steps to optimize processes and resources.

Start by ensuring your team has a clear understanding of the accounts payable process and the tools available to them. Calculating the total invoice processing cost is a critical first step, as it highlights inefficiencies and provides compelling evidence for improvements to senior management. Your total invoice processing cost will also underscore the cost savings potential of automation, which will minimize human error and give (nearly) invaluable time back to your team. 

If your staff spends most of their time on manual data entry, investing in AP automation software can supercharge productivity. Automation shortens invoice turnaround times, allowing each employee to handle a higher volume of invoices more efficiently. Regularly reviewing AP processes to identify and address bottlenecks also ensures your system remains optimized. Even small adjustments can lead to enormous performance gains.

Strong vendor relationships are just as essential. Establishing reliable communication channels minimizes disputes, fosters two-way trust, and ensures timely payments, helping you avoid unnecessary late fees and penalties.

All this to say, that by taking action on your data, you can transform your AP department into a high-performance, value-centered function that supports your business' broader financial goals.

How can Finofo unlock and propel your AP processes?

Finofo simplifies and accelerates global AP operations, helping mid-market and enterprise businesses achieve unmatched efficiency and speed. By combining automation, seamless ERP integrations, and real-time payments, Finofo addresses key AP challenges while directly improving performance metrics.

True AP automation with ERP integrations

Finofo automates repetitive tasks like data entry, payment processing, and reconciliation. By integrating with leading ERP systems like QuickBooks Online, Microsoft Dynamics 365, Sage, Xero, and Netsuite, beneficiary and bill information flows seamlessly. Automation lowers invoice processing costs and minimizes invoice exception rates, ensuring smoother workflows.

Effortless bulk payments 

Finofo enables businesses to process hundreds of payments with just a few clicks (most of them in real-time), across multiple currencies. This improves days payable outstanding (DPO) and allows AP teams to accomplish more in less time, boosting invoices processed per FTE.

Automatic reconciliation

Finofo automatically syncs supplier payments, currency conversions, and card transactions through bank feeds, ensuring they are ready for reconciliation. This eliminates manual entry, reduces workloads, and maintains accurate, up-to-date financial records.

Boost efficiency and optimize results in 2025

Finofo transforms accounts payable into a strategic bottom line leader. By automating processes, seamlessly integrating with ERPs, and enabling real-time payments, Finofo directly improves invoice processing costs, DPO, and exception rates. Finance leaders can leverage Finofo to build a more efficient, scalable AP function that optimizes cash flow, strengthens vendor relationships, and supports broader organizational goals—both in the short term and well into the future.

Ready to streamline your AP operations? Book a demo today!