WHAT IS THE ROI OF AP AUTOMATION?
When deciding whether to implement an accounts payable automation system, it’s important to consider the ROI.
In reality, calculating the ROI of AP automation isn’t always straightforward. This is because it impacts so many different areas of a business, and the savings compound as volumes increase.
When calculating the ROI of AP automation, there are a number of points to consider, including both financial and non-financial benefits.
The Financial ROI of AP Automation
The specific numbers will depend on factors such as the industry your business operates in, the amount you invoice each month, and how much you currently spend on the process.
Factors to consider include:
- Reduced invoicing processing costs
- Reduced losses as a result of human error
- Fewer supplier inquiries into payment status
- Increase in on-time payment performance
- Time savings
- Increased capture of early payment discounts
- Reduced staffing costs
The Non-Financial ROI for AP Automation
As well as the financial returns, you should also consider the non-financial ROI, including:
- Increased control
- Streamlined processes
- Easy auditing
- Optimised business relationships
- Employee satisfaction
Considering all the factors above and their financial implications will help you calculate the potential ROI AP automation could offer for your organisation.
HOW TO GET BUY-IN FOR AP AUTOMATION IN YOUR BUSINESS
If you’re considering implementing AP automation in your business, you’ll need to secure buy-in from key stakeholders. Introducing automation won’t just impact the accounts payable department, it will also impact roles such as IT, procurement, management, and the CFO.
Each stakeholder, or group of stakeholders, will have their own questions and potential concerns when it comes to AP automation. To overcome them, you must identify the issues, and explain how automation will benefit their areas of the business.