Securing the Accounts Payable process: Why control and compliance start with automation

Accounts Payable (AP) is among the riskiest, most resource-draining areas of finance department operations – here’s how to maintain compliance and control

 Here’s an uncomfortable truth that CFOs can’t ignore any longer – Accounts Payable (AP) has quietly become one of the riskiest, most resource-draining processes in UK finance departments.

While many businesses have focused their digital transformation efforts on front-office innovation, back-office functions like AP often remain fragmented, overly reliant on manual processes and dangerously exposed to fraud.

Indeed, according to recent research, 93% of UK companies were targeted by supplier fraud in 2024, and nearly three-quarters (73%) expected it to get worse this year.

Many finance leaders are still grappling with how to combat fake invoices and falsified bank details, internal manipulation of invoices and phishing scams. These are just a few of the tactics fraudsters are using to exploit outdated processes, decentralised tools and gaps in the approval process.

Fear not, however; preventing these risks is entirely achievable, thanks to the use of Accounts Payable automation. Not only does an AP automation solution reduce invoice processing times, boost accuracy and deliver real-time cash flow visibility, it also hugely improves the finance team’s capability for fraud detection. Smart Data Extraction, anomaly alerts, AI-powered invoice checks and traceable approval workflows are ushering in an era of intelligent, secure AP.

So contrary to what many may believe, automation isn’t just about efficiency – it’s part of a business’s defence mechanism. By taking control of the entire AP process, finance teams can proactively protect their organisations from financial and reputational damage.

In this article, John Gronen, Chief Financial Officer at cloud-based, e-invoicing and P2P automation solution provider, Yooz, outlines how finance leaders can take back control by automating AP processes to streamline operations, secure payments and defend against fraud.

How fraud impacts finance departments

A clear sign that UK finance departments in businesses of all sizes are under threat is the alarming regularity with which they face sophisticated fraud attacks.

However, the risk of fraud isn’t just limited to external threat actors, it can also be a result of the people working within a business. Fraudsters outside the business network may attempt to catch invoice systems out by generating and distributing fictitious supplier relationships and documentation, whereas inside threats come from abuse of access privileges, either by genuine mistake or with malice.

In many cases, regardless of the sophistication of the fraud or the intent of the person, it is the vulnerability of internal systems that allows it to succeed. Quite simply, manual workflows lack the control and traceability needed to detect these scams and finance teams can no longer rely on email trails and gut checks.

Think about it, can your business really afford to suffer any of these potential consequences for insufficient fraud detection?

• Direct financial loss
• Legal or fiscal penalties
• Contractual or supplier disputes
• Reputational damage

Another thing to consider is that when manual checks and balances are in place, having to individually compare the credentials of each invoice against behavioural data places a huge strain on finance department staff, impacting morale and in some cases employee turnover.

How AP automation can help

Nevertheless, UK finance leaders needn’t feel overwhelmed. There is AP automation software out there that facilitates speed, accuracy and control of the finance process – the holy trinity of automation. While manual spreadsheet management is likely to cause security issues that can quickly spiral out of control, automating the invoice process returns power to the finance team while fostering efficiency and visibility across the whole business.

For example, Smart Data Extraction technologies capture and interpret key information from incoming invoices, providing accurate, structured data for the AP system.

This data then feeds into automated two- and three-way matching workflows, where invoices are checked against purchase orders and receipts to ensure payments are legitimate and properly authorised. Together these steps reduce manual entry errors, minimise the risk of fraud and maintain a clear audit trail for compliance.

AI-driven invoice checks automatically flag inconsistencies or duplicates within individual invoices, helping prevent fraud and ensuring errors are caught early. In parallel, automated anomaly alerts monitor wider patterns in invoice and payment data, notifying finance teams of unusual trends or suspicious activity. Together these controls strengthen defences and provide early warning against both simple errors and more sophisticated fraud.

Controlled and customisable approval workflows ensure that every invoice is reviewed by the right approver and automatically routed to them by the system based on pre-defined rules. This guarantees that no document bypasses approval, enforces internal controls and maintains a secure process where every step is fully auditable, reducing the risk of fraud or unauthorised payments.

When combined, these features demonstrate that AP automation is about more than efficiency – it’s about creating a finance function built on control, transparency and trust.

Defending finance with AP automation

The growing threat of fraudsters targeting UK finance teams is concerning, but with the right strategy and technology, finance teams no longer have to rely on error-prone manual processes that expose them to risk. Some still worry that automation threatens jobs, but the reality is very different: AP automation gives existing finance teams greater control over invoice management.

When implemented correctly, with guidance from the finance teams who use it daily, automation becomes more than just a tool for efficiency – it forms a core part of business defence. Customisable, all-in-one cloud solutions improve fraud detection, enhance visibility over invoice processing, secure the payment process and protect against unauthorised activity.

What’s more, AP automation is not only essential for meeting requirements but also for staying ahead. Organisations that embrace it won’t just comply – they’ll improve oversight, reduce risk and gain a competitive edge.

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