In recent years, the finance function in higher education has quietly become one of the most operationally strained areas across institutions. Behind the scenes, accounts payable (AP) teams are managing increasing volumes of invoices, dispersed across departments, campuses, and sometimes even continents — all while working with outdated systems and lean staffing models.
Now, a growing number of colleges and universities are reexamining their AP processes. Many are turning to automation and AI-enabled tools to modernize their operations — not only to gain efficiency, but to better align with institutional goals like transparency, agility, and fiscal responsibility.
This blog explores why the shift is happening, what challenges higher ed faces in AP today, and how automation is helping institutions meet the moment.
The State of AP in Higher Ed: Fragmented, Manual, and Under Pressure
Despite being centers of innovation, many higher ed institutions still rely on manual invoice workflows, paper-based processes, and disconnected financial systems. In large part, this is due to long-standing investments in ERP platforms, customized scripts, and decentralized administrative models — all of which can make change feel daunting.
Some common realities include:
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Invoice processing times exceeding 30 days
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Limited visibility into approvals and cash flow
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High costs per transaction, often in the $10–30 range
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Decentralized approval chains that vary by department or campus
As reported in Ardent Partners’ State of ePayables 2023, a significant percentage of organizations still rely on manual routing and have low visibility into real-time AP metrics. For higher education — where accountability and auditability are non-negotiable — these gaps introduce risk and inefficiency.
Why Now? Four Forces Driving Change
Higher education isn’t just trying to keep up — it’s positioning itself to lead. The push for AP automation is driven by a convergence of factors:
From the CFO’s office to procurement, institutions are looking for modern tools that don’t just digitize — they streamline. AP automation offers a clear path to digital maturity, without requiring a complete overhaul of legacy systems.
2. Operational Complexity
Many institutions operate across multiple schools, campuses, or international locations. Each unit may have its own vendors, approvers, and accounting codes. Any AP solution must be flexible enough to accommodate this diversity without adding more administrative burden.
3. Staffing Constraints
As finance departments are asked to do more with less, automation becomes a way to relieve teams of repetitive, low-value tasks and reallocate resources to more strategic work.
4. Institutional Benchmarking and Peer Momentum
Higher education is a community-driven sector. Institutions often look to one another for guidance — and once a peer institution adopts a new technology successfully, others tend to follow. Having visible success stories in this space fuels further adoption.
Artificial intelligence is increasingly embedded in modern AP systems — not as a buzzword, but as a practical tool to simplify complex tasks. In the context of higher education, AI can:
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Predict and auto-code invoice line items
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Improve accuracy by learning institutional GL structures
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Help identify exceptions before they become delays
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Assist in maintaining policy compliance across decentralized units
The result is fewer manual touches, faster processing times, and more accurate data for reporting and forecasting.
What to Look for in a Higher Ed-Ready AP Solution
Not all AP platforms are built with higher ed in mind. Institutions evaluating automation tools should consider:
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Integration capabilities with existing platforms like Workday Financials, Banner, or similar
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Flexibility to support decentralized workflows and multi-entity structures
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Support for complex document types — including PO, non-PO, contract-based, and grant-related invoices
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Audit and compliance readiness, with full traceability and data retention controls
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Ease of implementation and a clear change management path
Solutions like Ascend, for example, are designed with these needs in mind. Built to integrate natively with Workday, Ascend offers automation tools that reduce manual processing, adapt to complex institutional structures, and improve visibility across the invoice lifecycle — all without requiring deep IT involvement or disruptive process changes.
Final Thoughts: Small Steps Toward Big Impact
Modernizing AP doesn’t have to mean replacing existing systems or undertaking a massive transformation. Many institutions start with targeted automation — bringing AI into specific workflows, digitizing approvals, or automating invoice intake — and build from there.
The key is choosing tools that match the complexity, culture, and mission of higher education. With the right strategy and partners in place, AP automation can become a critical enabler of operational resilience and financial agility.
Interested in exploring how AP automation could support your institution’s goals?
Click below to request a free demo.
