In today’s AP world, fully automated accounts payable solutions provide visibility for cash management, forecasting, spend management, long-term planning, and budgeting.
Large companies are figuring out these benefits and cost savings of automating their accounts payable process. While small businesses are following suit, are they doing enough? To break down the current state of AP automation, we’ve put together an infographic for you to see how AP automation is being used and how it can benefit your business.
Most accounts payable functions are still manual or semi-automated. If your organization is processing 1,000 invoices per month and 61% of them require some manual task, a person would look at 7,320 per year. Chances are you don’t have time to spare for someone to be looking over that many invoices.
Now we know how fully automated AP can save you time, let’s talk about how it can save you money.
We’ll talk in terms that are sure to get your senior management’s attention: companies that have fully automated AP lower their average invoice processing costs almost 30 percent, according to the Association for Information and Image Management (AIIM). Those savings translate into approximately $300,000 per year for a business that processes 10,000 invoices per month at an average cost of $10 per invoice. Those savings are conservative.
If you think you can achieve these savings with a semi-automated accounts payable solution, think again. The real cost to process a single invoice comes down to $38.77 per invoice with an annual cost of $465,240 when processed manually and $16.67 per invoice with an annual cost of $200,040 for semi-automated at 1,000 invoices per month.
Lastly, best-in-class organizations with fully automated accounts payable processes have nearly 4x the rate of day-to-day visibility into enterprise cash flow as their peers. The least AP solutions enable your on-the-go workforce to manage invoices, POs, lists, and approvals from any mobile device.