Errors are an inevitable part of doing business. However, when errors occur in accounts payable (AP), they go beyond minor mishaps and can spiral into serious financial losses, strained vendor relationships, operational inefficiencies, and even compliance violations.
A recent survey by the Center for Real Estate Technology & Innovation and SurfaceAI found 60% of property managers face monthly financial discrepancies, while 40% encounter them on a quarterly basis. Unsurprisingly, 100% of respondents cited billing errors as a leading culprit. Far from isolated instances, these mistakes span from hidden late fees to duplicate invoices and incorrect coding.
To preserve financial health and maximize net operating income (NOI), operators must recognize the real cost of AP errors and embrace artificial intelligence (AI)-powered solutions designed to mitigate risk and boost efficiency.
The Hidden Costs of AP Errors
AP processing is a demanding task, particularly in the multifamily space. With multiple properties, a wide network of vendors and a constant flow of invoices, AP teams face unique challenges. Outdated manual AP processes only make it harder, exposing operators to financial risks.
“The most common mistakes we encountered were invoice entry errors such as incorrect amounts, vendor discrepancies, invoice numbers, and GL allocations,” says Reena Ugwuanyi, manager of property accounting for Deveraux Apartment Communities, which primarily develops multifamily communities in Canada. “These issues directly impact financial performance, leading to increased costs from duplicate payments and late fees.”
Manual AP workflows can lead to duplicate payments, missed payment deadlines, and unnecessary financial drain—all of which damage vendor relationships, reduce transparency, and increase exposure to invoice fraud. Without real-time tracking, operators also struggle to spot budget variances or correct financial inefficiencies promptly.
“Such inefficiencies not only delay invoice processing and risk missed payment deadlines, but also require additional staffing to manage high volumes, driving up operational costs,” Ugwuanyi notes. “The result is increased stress on AP teams and strained relationships with vendors.”
To combat these costly and time-consuming inefficiencies, many organizations are turning to innovative solutions that not only ease the burden on AP teams but also enhance overall performance.
AI-Powered AP Automation: A Game Changer
AI-powered AP tools are revolutionizing how organizations manage accounts payable. By leveraging advanced AI-based AP coding engines, operators reduce human error, improve accuracy, and boost efficiency.
“With AI streamlining our invoice entry process, our team can now input all invoices more efficiently, ensuring expenses are allocated to the correct month,” Ugwuanyi says. “We can track spending with greater accuracy and gain clearer insights into our budget. AI’s ability to learn our entry patterns also helps guarantee consistent, accurate expense categorization, which supports a more precise overall financial analysis.”
AI-powered AP automation enhances financial operations by improving budget visibility, increasing productivity, ensuring compliance, and strengthening financial control. Real-time tracking and granular expense categorization help operators detect budget variances early, safeguarding NOI. Automation significantly boosts productivity, freeing employees from manual tasks and reducing errors. Additionally, AI ensures compliance by accurately categorizing transactions, mitigating risks related to misclassification and financial reporting.
AI tools can also flag anomalies and suspicious invoices before they’re processed, significantly improving fraud detection. They help manage controllable expenses, streamline approval workflows, and optimize vendor relationships. As a result, organizations gain greater agility, scalability, and financial forecasting accuracy.
“The biggest boost to our productivity since eliminating manual data entry has been the time savings from having all invoice entry fields prepopulated using our own historical data,” Ugwuanyi says. “Now, our team can quickly review each entry before it moves into our accounting system—immensely reducing invoice entry time. This not only speeds up the AP process but also frees up our employees to focus on higher-value tasks.”
This increased efficiency highlights a broader benefit of AI-powered automation—its ability to transform routine processes into strategic advantages that support long-term growth.
The Investment That Pays Off
Investing in AI-powered AP automation isn’t just about minimizing mistakes—it is about driving long-term financial health. AI-driven tools streamline operations, improve accuracy and deliver unprecedented efficiency.
“AI-powered AP automation has significantly reduced our reliance on manual labor, cutting operational costs and minimizing errors—without the need to expand our team,” Ugwuanyi says. “While the upfront investment may cause pause for some, the long-term savings and efficiency gains are undeniable. By tapping into automation, we are laying the groundwork for sustained financial success and a more competitive business.”
Poor data quality and manual processes cost businesses millions, but AI is paving the way for smarter, more profitable AP management. By making the right investments upfront, multifamily operators gain a competitive edge and can avoid costly corrections down the road, ensuring a stable financial future.
