Accounts Payable Automation: Reduce costs with Novabridge & ServiceNow

Accounts payable operations (AP) have long been one of the most complex and difficult-to-control functions within organisations. Especially with scaling businesses, the challenge is only growing. Relying on outdated, manual processes not only increases operational costs but also damages supplier relationships, introduces payment delays, and heightens compliance risks. These inefficiencies, left unaddressed, can spiral into reputational damage and diminished customer trust.

In this article, Novabridge explores the high cost of inaction, outlines the pain points of traditional accounts payable systems, and presents a modern, AI-powered accounts payable solution to help organisations.

The cost of traditional Accounts Payable operations

According to the 2024 Ardent Partners State of ePayables report, the average cost to process a single invoice in a largely manual AP environment is $10.81, compared to just $2.09 in best-in-class operations. This fivefold difference is a direct result of outdated practices, highly dependent on human input, fragmented systems, and reactive supplier management.

The report also highlights that 62% of AP teams cite manual data entry and inefficient processes as their top challenges, while 58% struggle with lengthy invoice approval cycles, creating cash flow unpredictability and delayed supplier payments.

In short, the longer you delay account payable automation, the more you pay in time, trust, and transactional efficiency.

Why traditional Accounts Payable processes are a ticking time bomb

We can't argue that dealing with accounts payable the manual way has become a daily headache for many finance teams nowadays. The method is laboured, incoherent, and aggravating for everyone interacting with it. The following outlines exactly the challenges they face every day:

1. Massive productivity loss from manual tasks

In many organisations, invoice handling still means typing everything in by hand. Employees usually spend hours manually entering invoice data line by line, checking them against purchase orders, and correcting errors caused by poor OCR capture.

Even when an invoice is finally ready, it must be uploaded to disconnected systems where it’s likely to get lost in a sea of files. On top of that, they’re often double-checking entries to avoid duplicates or mismatches, turning a basic task into a major time sink.

And when someone asks for a copy of an old invoice? Be prepared to dig through shared folders and overflowing inboxes.

2. Poor collaboration across teams

Lack of integration between procurement, finance, and business units means approvals are delayed, discrepancies go unresolved, and disputes with suppliers escalate unnecessarily.

Specifically, invoice holds go unresolved. Payment delays mount. And when suppliers don’t get clear updates, they flood AP with inquiries like:

• “Has my invoice been approved?”
• “What’s the payment date?”
• “Why was this short-paid?”

Each inquiry becomes a manual investigation. And over time, this strain damages supplier relationships and trust while wasting even more internal time.

3. Document chaos

Paper invoices, emailed PDFs, and unstructured attachments dominate many AP inboxes. That means hours spent:

• Extracting data by hand
• Correcting OCR errors
• Uploading files to various systems

And even with digital documents, inaccurate data entry and misclassification remain a constant source of friction.

With no centralised way to manage and track invoices, businesses face audit risks, missed discounts, and unnecessary duplication.

As the Aussies say, “You’re pushing it uphill with a stick” if your AP team is still chasing approvals via email. It's time to move from reactive invoice handling to automated accounts payable operations that scale with your business.

Accounts Payable automation is the solution!

Manual processes are slowing teams down, but they don’t have to. Intelligent automation and centralised visibility can help! With ServiceNow Accounts Payable Operations - the ServiceNow AI solution, every aspect of the AP lifecycle is covered and modernised. Here’s how it works:

End-to-End Accounts Payable workflow automation

Problems Solved:

• Manual invoice entry
• Chasing approvals
• Reconciliation delays

ServiceNow Capabilities:

• ServiceNow Financial Services Operations (FSO) – automates finance operations including invoice processing and financial case management.
• ServiceNow IntegrationHub – enables connection with ERP systems (e.g., SAP, Oracle) to automate PO matching, payments, and ledger updates.
• Flow Designer – low-code/no-code workflow builder to automate invoice approval routing.

Results are faster cycle times, fewer errors, and significant cost savings.

💡  Estimated saving: $4 - $6 per invoice when automation replaces manual entry and approval tracking.

AI-Powered document intelligence

Problems Solved:

• OCR errors
• Mismatched entries
• Slow document handling

ServiceNow Capabilities:

• Document Intelligence (now part of the AI & ML capabilities within the Now Platform) – uses AI to ingest unstructured documents (PDFs, images) and extract structured data from invoices, receipts, and contracts.
• ServiceNow AI Search + Now Intelligence – identifies invoice types, classifies content, and flags anomalies.

No more scanning errors or mismatched line items. More invoices processed per FTE (full-time equivalent). Fewer exceptions. Increased first-pass accuracy.

💡 Estimated saving: 50 - 70% reduction in document handling time, plus long-term scaling without adding headcount.

Real-time supplier self-service portals

Problems Solved:

• Supplier frustration
• High volume of invoice queries
• AP team distraction

ServiceNow Capabilities:

• Supplier Lifecycle Management (SLM) – suppliers can view invoice statuses, submit inquiries, and upload documents via a portal.
• Virtual Agent – provides real-time updates and answers for suppliers using chatbots (available via web or mobile).
• Case and Knowledge Management – tracks and resolves supplier issues with transparency and accountability.

Therefore, AP teams regain focus, suppliers get transparency and everyone works smarter.

💡 Estimated saving: 20 - 40% reduction in supplier inquiry volume, based on automation and status visibility alone.

Single pane of glass visibility

Problems Solved:

• Lack of real-time insights
• Forecasting blind spots
• Siloed financial data

ServiceNow Capabilities:

• Performance Analytics for Finance – tracks AP metrics like invoice cycle time, exceptions, payment delays, and supplier SLA breaches.
• Dashboards and Reporting Tools – unified visibility for finance execs across invoice workflows, bottlenecks, and liabilities.
• Predictive AIOps (optional add-on) – for real-time anomaly detection in high-volume financial workflows.

The result is clear: Smarter forecasting, stronger control over cash flow, and far more confident decision-making across the business.

ServiceNow AI solutions enhance accounts payable operations

Novabridge - Transformative solutions for leaders

At Novabridge, we are more than ServiceNow Accounts Payable implementation experts—we’re the agile ServiceNow specialist in Australia and New Zealand, delivering top-tier solutions with a personal touch.

Our proven frameworks and cross-sector experience ensure a smooth transition from clunky Accounts Payable systems to intelligent automation, helping you unlock savings, reduce risk, and transform finance into a value centre.

We’ve helped leading organisations across the region digitise and streamline their accounts payable automation processes:

• Canberra Health Services: We implemented ServiceNow-based workflow automation to streamline vendor onboarding, improve approval cycles, and achieve faster invoice reconciliation.
• Australian Maritime Safety Authority (AMSA): Working with Novabridge, AMSA replaced fragmented AP handling with a unified ServiceNow dashboard, boosting visibility and reducing compliance risk.
• Department of Defence: Through ServiceNow automation and AI integrations, we enabled secure and auditable AP workflows aligned with Defence procurement standards.

When you partner with Novabridge, you don’t just get a solution but also a strategic ally in modern finance transformation.

Conclusion

With costs rising, regulatory scrutiny increasing, and finance teams under pressure to do more with less, manual accounts payable should be enhanced and automated to empower the financial team as well as the supplier relationship, not a pain point in the organisation anymore. ServiceNow Accounts Payable operations, delivered by Novabridge, offer a clear path to operational excellence.

Let’s transform your AP from bottleneck to breakthrough. Reach out today to explore our accounts payable automation offerings.

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