Accounts payable automation offers many opportunities to reduce costs, increase efficiencies and improve invoice-processing accuracy. However, despite the obvious advantages of AP automation, many organisations still allow concern over the upfront costs to delay or dissuade them from moving to an automated system.
The reality is that the up-front costs are on average recouped within just a few months through the immediate and on-going savings produced by an automated system.
What is the return on investment for accounts payable automation?
On average, accounts payable automation produces a 200% to 300% ROI in the first year. These savings continue year on year and more importantly, as the company grows, the savings increase.
The Accounts Payable Benchmark Report, an annual report that measures the productivity of AP operations in more than 800 organisations, demonstrates how valuable accounts payable automation is to the bottom line of any organisation, no matter the size or scale.
For example, consider the impact of automation on invoice processing costs:
- No automation = $6.60 per invoice
- Full automation = $1.24 per invoice
Measureable time savings and improved productivity
Automated accounts payable delivers some clear time savings by eliminating the following manual handling activities:
- Opening mail
- Invoices sorting
- Data entry
- Reviewing every invoice, to determine if it has an issue
- Handling and resolving exceptions
- Coordinating the time consuming process of exceptions, discrepancies and supplier dispute.
Automation frees up AP staff and management to focus on more strategic, profitable activities, including investing time in spend analysis and fraud detection as well as reducing management involvement in exception resolution.
The productivity gains through accounts payable automation are an untapped opportunity that can benefit organisations of all sizes.
Cost savings from duplicate payment detection
In addition to these cost returns and efficiencies, the Complete Automated Accounts Payable Solution (CAAPS) software also offers the benefit of duplicate payment detection.
The savings delivered in the first year alone by identifying undetected overpayments is often greater than the costs of implementing an automated system.
Acumen Data offers a complimentary ROI report that calculates how much you could save by introducing accounts payable automation. Contact us to find out more and request your complimentary ROI calculation.