Spreadsheets Slow Buildings Faster Than Broken Elevators

For many property managers, inefficiencies lurk not in the halls of apartment buildings but in the filing cabinets and spreadsheets of the back office.

The paperwork and manual reconciliations required for accounts payable (AP) remain an expensive, time-consuming burden for an industry already under pressure to keep costs low and tenants satisfied.

Paper-Based Processes Slow Property Management

Despite advances in financial technology, property managers still rely on manual workflows, according to the PYMNTS Intelligence report “Remodeling AP: How Automation Is Building Smarter Property Management.”

Many firms continue to process more than 1,000 invoices per month using spreadsheets, checks or pen-and-paper entries. These outdated methods can consume more than 40 hours of staff time each month while exposing operations to delays, late payment penalties and costly errors. As of 2024, for example, 25% of property managers still rely solely on manual vendor management, costing more than $20,000 annually in labor.

Paper checks and manually keyed invoices leave property managers vulnerable to fraud. The result is slower payments, strained supplier relationships and ultimately, tenants who feel the downstream effects of inefficiency when services or utilities lag.

AI Cuts Manual Tasks in Accounts Payable

Artificial intelligence is becoming a cornerstone of modern property management by addressing manual AP processing.

Natural language processing tools now extract invoice data, replacing tedious and error-prone rekeying. Machine learning algorithms further streamline workflows by routing invoices directly to the appropriate approvers and flagging potential delays before they happen. The payoff is not just faster payments but scalable back-office operations that can keep up as property portfolios expand. This year, 36% of property management companies are adding new technologies to increase efficiency, with 28% using AI tools.

AI Enhances Security and Fraud Detection

Fraud has become a mounting risk in property management, with many firms reporting a surge in fraudulent invoices and payment scams.

AI-driven platforms tackle this risk by identifying anomalies in vendor details and transaction patterns. By flagging suspicious activity in real time, these systems offer a safeguard against cyberattacks such as business email compromise, which cost the real estate sector $446 million in 2023.

AI Turns AP Into a Strategic Asset

Beyond streamlining invoices and safeguarding cash flow, AI-driven AP platforms give property managers new visibility into working capital. Real-time analytics forecast payment schedules, highlight opportunities for early payment discounts and optimize outgoing cash flows.

By digitizing supplier payments and eliminating reliance on paper checks, managers not only reduce operational risk but also free staff to focus on higher-value priorities such as tenant service and retention. In this way, AI is transforming AP from a behind-the-scenes administrative task into a strategic driver of efficiency and growth in property management.

AI is no longer a side experiment in property management’s back-office operations; it is becoming a tool for financial efficiency and fraud prevention.

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