Accounts payable has traditionally been treated as an administrative function responsible for processing invoices and issuing payments. That role is changing as finance leaders examine how payment decisions can affect costs, working capital, supplier relationships, and financial returns.
During the recent Controllers Council and AvidXchange webinar, The New AP Playbook: From Cost Center to Profit Driver, Michele Retzbach, Principal Solutions Consultant at AvidXchange, joined Controllers Council Executive Director Neil Brown to discuss findings from AvidXchange’s 2026 Payment Strategy Survey and the practical steps finance teams can take to derive greater value from AP.
The discussion focused on three developments: moving from payment processing to payment strategy, strengthening supplier relationships through the payment experience, and using payment data to inform financial decisions.
Moving From Payment Processing to Payment Strategy
AvidXchange surveyed more than 500 finance decision-makers at mid-market organizations in June 2026. The research found that 63% of respondents mostly or exclusively use electronic payments, while 48% still use paper checks. In addition, 67% outsource at least some supplier payment methods.
Despite the broader adoption of electronic payments, only 53% of respondents have a formal payment mix strategy.
As Retzbach explained, “Automation creates efficiency, but the strategy behind it creates value.”
A deliberate payment strategy can help organizations reduce processing costs, capture rebates through eligible electronic payments, take advantage of early payment discounts, and make more informed working capital decisions. It also encourages finance teams to examine why particular payment methods are being used rather than continuing established practices without regular review.
The webinar’s audience poll reflected this opportunity. Twenty-nine percent of attendees said their organization has payment guidelines but no formal strategy, while 23% said payment methods are selected on a case-by-case basis. Only 20% reported having a formal payment mix strategy.
Measuring the Financial Value of Payments
Rebate programs provide one of the more measurable examples of how AP can contribute financially.
According to the survey, 80% of respondents currently capture rebates or cash back through electronic payment programs. However, only 59% actively track and report rebate performance, while 21% capture rebates without formally measuring the results.
Retzbach emphasized the importance of measurement: “Capturing rebates isn’t enough on its own. It’s the measurement and the data around it, what turns it into a repeatable strategy.”
Tracking rebate performance allows finance teams to determine which payment methods and spending categories are producing returns. That information can then become part of future payment decisions rather than leaving rebate income as an incidental benefit.
Strengthening Supplier Relationships Through Payments
Payment practices also influence how suppliers view their customers.
AvidXchange’s survey found that 46% of respondents believe supplier payment experience has a very significant effect on supplier relationships. Finance teams identified faster payment processing and greater payment flexibility as two of the leading opportunities for improving that experience.
Providing suppliers with payment choices, reliable delivery, and useful remittance information can make reconciliation easier and reduce payment-related friction. These improvements can contribute to stronger relationships and, in some circumstances, better pricing, greater flexibility, or improved access to supply.
The webinar audience reported similar findings. Forty-five percent said supplier payment experience has a somewhat significant effect on supplier relationships, while another 17% described the effect as very significant.
Turning Payment Data Into Financial Intelligence
The third development concerned how finance teams use the information generated by AP.
The survey found that 51% of respondents have real-time visibility and actively use it to manage cash flow. At the same time, 23% said better visibility into cash flow and payment timing would have the greatest effect on their AP strategy during the next 12 months.
Retzbach explained, “Having visibility isn’t the goal. That isn’t the main goal. It’s using that to then make a decision.”
Tracking invoices, payment timing, bottlenecks, and cash requirements has limited value unless finance teams use that information to reconsider processes and guide decisions. Connecting AP information with reporting systems, business intelligence tools, or an ERP can provide leadership with a more useful view of payment activity and cash flow.
Technology plays an important role in supporting that work. Half of survey respondents said their AP or payment automation provider is a key input to their finance strategy. Limited technology infrastructure and a lack of real-time visibility were also cited as obstacles to developing a stronger payment strategy.
Three Questions Finance Leaders Should Ask
Retzbach concluded the presentation with three questions finance leaders can use to evaluate their current AP operations.
First, are payment methods being selected intentionally? Organizations should consider whether each check, ACH payment, card transaction, or other payment method has a financial or operational reason behind it.
Second, does the supplier payment experience strengthen supplier relationships? Delays, limited payment options, and missing remittance information may create avoidable difficulties for important suppliers.
Third, is payment data helping leadership make better financial decisions? As Retzbach stated, “Every payment leaves a data trail.” That information can contribute to reporting, forecasting, cash management, and other finance decisions when it is collected and used effectively.
Building the Business Case for AP Automation
During the Q&A, Retzbach also discussed how finance leaders can develop a business case for AP automation when budgets are constrained.
Potential savings can include avoiding future hires, redirecting employees toward higher-value responsibilities, reducing payment processing expenses, and supporting organizational growth without a comparable increase in payroll. Rebate revenue can provide another measurable component of the calculation.
Depending on payment volume and supplier spend, Retzbach said some mid-market organizations can see financial returns during the first year.
“It is not uncommon for them to be able to be in the green and fully pay for an automation tool within that first year, just simply based on rebates that they’re collecting on those e-payments.”
Automation can also change how existing AP employees spend their time. Rather than eliminating the need for finance professionals, Retzbach described an opportunity to redirect employees away from repetitive activities.
“It’s really about what I mentioned earlier on the ROI and redeploying those AP members or other staff members to other higher value work.”
Reducing manual work can also support employee retention and help accounting departments appeal to professionals who expect contemporary systems and more flexible working arrangements.
A More Deliberate Approach to AP
The webinar illustrated how accounts payable can influence areas that extend beyond invoice processing. Payment methods affect transaction costs and rebate opportunities. Payment reliability and flexibility influence supplier relationships. Payment data can contribute to cash flow planning and broader financial decisions.
For finance leaders, the practical starting point is to examine existing payment practices and determine whether the organization has a clear reason for how payments are selected, processed, measured, and reported.
Watch the full webinar for additional survey findings, practical recommendations, and the complete Q&A with Michele Retzbach.
ABOUT THE SPONSOR:
AvidXchange is a leader in automating invoice, payment and Accounts Payable processes for mid-market organizations. AvidXchange processes more than $242 billion transactions annually, with 1,600 employees, 8,500 customers, and over 265 accounting system integrations. Learn more at www.AvidXchange.com.
