Finofo launches AI-native AP platform for Canadian firms

Finofo has launched an AI-native accounts payable automation platform for Canadian mid-sized businesses, targeting finance teams that process 200 or more invoices a month.

The Calgary-based financial technology company says the system brings invoice intake, collaboration, approvals, payments and reconciliation into a single platform. It is aimed at businesses where rising invoice volumes have outgrown manual processes and disconnected software.

Accounts payable remains heavily manual in many organisations, especially where teams rely on separate tools for document capture, internal approvals, payment processing and reconciliation. Finofo's approach is designed to keep those tasks within a single workflow, with comments, decisions, and supporting records attached to the same system.

The product is aimed at Canadian finance leaders under pressure to modernise operations without expanding headcount. Finofo argues that accounts payable is a practical area for AI adoption because the work is document-heavy, repetitive and often handled at scale.

Prateek Sodhi, Chief Executive Officer and Co-founder of Finofo, said many products that claim to automate accounts payable still leave finance teams dealing with fragmented underlying processes.

"Accounts payable is still one of the last major finance workflows that has not been truly automated end to end," said Sodhi. "A lot of products claim to automate AP, but for many finance teams the work is still fragmented underneath. What they actually need is a platform with a brain, one that understands the document, surfaces the right context, and adapts to the way the team works. That is the standard we are building at Finofo."

The platform is intended to support the full accounts payable process, rather than only the early stages of invoice capture and routing. Teams can bring in invoices and related documents from several channels, extract line-level data, match records against purchase orders, receipts and contracts, and manage discussions directly on the invoice.

It also includes AI-assisted general ledger coding, approval workflows, posting back to enterprise resource planning systems, and support for payments and reconciliation. The software is built to handle multiple entities, currencies and approval paths while showing users what has been blocked, approved or needs attention.

Charles Maranda, Chief Technology Officer and Co-founder of Finofo, outlined the company's view of what finance teams need from accounts payable software.

"Finance teams do not need another tool that adds work around the ERP," said Maranda. "They need a platform that can handle AP end to end. In practice, that means finance teams can ingest invoices and supporting documents from multiple channels, extract line level data, match against purchase orders, receipts, and contracts, collaborate with comments and mentions directly on the document, apply AI assisted GL coding, approve with full context, post clean records back to the ERP, and carry the workflow through payment and reconciliation in one system. It also means being able to manage growing AP complexity across multiple entities, currencies, and approval paths without losing visibility into what is blocked, what is approved, and what needs attention next."

Cost pressure

Finofo says the economics of automating accounts payable become clearer as invoice volume rises. It estimates that processing costs can fall from about USD $10 to USD $15 per invoice to roughly USD $2 to USD $3, while cycle times can drop from nine to 17 days to three to four days.

The impact becomes more visible once a finance team processes more than 200 invoices per month. At that level, fragmented approvals, unclear ownership, slow exception handling and delayed reporting can begin to create operational strain.

One scenario cited by the company involved a four-person accounts payable team handling about 5,000 invoices a year. In that example, manual workload could be reduced by more than 75%, freeing staff for analysis, controls and other finance work.

Canadian focus

Finofo is presenting itself as a domestic option in a market where finance teams are weighing both software modernisation and broader AI adoption. The company says demand for Canadian technology and AI use has created a favourable backdrop for a locally built accounts payable system.

Its market focus is on mid-sized businesses rather than large global groups or very small firms. By concentrating on organisations with a meaningful monthly invoice burden, Finofo is seeking customers with enough process complexity to feel the limits of manual work, but that may not yet have adopted broader end-to-end automation.

Finofo argues that finance leaders do not need more point products added to existing processes, but rather software that can carry work from invoice through payment and reconciliation in a single system.