When legendary bank robber Willie Sutton was captured in 1934, the FBI agents asked, Why do you rob banks, Willie? He replied, “because that's where the money is.”
Accounts payable operations can be chaotic, but AP automation solutions can help. First off, there’s the chaos of lost invoices, errors during data entry, and invoice duplicates that comes with the analogue version of accounts payable. Then, you have staff members banging their heads against the wall doing the same monotonous tasks over and over again. And if you’re considering implementing an AP automation solution, the daunting task of researching, integrating, and training your staff can seem like too much to bear.
Did you know you could reduce your document management costs by up to 80% if you choose the right system? Download the infographic for free when you subscribe to our blog.
A cost per invoice benchmark is important because it tells you how efficient you are. Industry leaders are paying just a few dollars, but laggards are paying $10, $20, or more. It’s expensive, inefficient, and with the right elbow grease, can become a strength for the company instead of a weakness. Calculating your Cost per Invoice (CPI) benchmark may seem like a challenging and time-consuming task, but as we’ll discuss, an accurate CPI is well worth spending the time on to use as a tool to benchmark your AP department’s efficiency and help determine if you should look for ways to automate and improve your processes. Often AP departments will simply calculate their CPI by dividing the total annual salary of their AP department by the number of invoices processed per year, but this leaves out several important factors that impact cost and does not give a clear picture of where you can start improving your processes.
As you finish closing out the books for 2016, it’s time to think about what the coming year could hold for the accounts payable industry. This past year we saw a big push toward cloud-based document management and automation. This year we think that trend will continue, with more technologies and advancements around data, artificial intelligence, mobile accessibility and more!
Making significant process changes is rarely ever easy, but if you’re reading this post, there’s probably a reason you’re curious if switching to an automated accounts payable system is the right move to make in your company. Maybe you’ve heard colleagues at other companies have had success making the switch, or perhaps you just feel bogged down with endless paperwork and that there has to be a better way. We work with people in finance every day to identify what process improvements they can make and if an accounts payable automation system is the right solution for them. Below we’ve outlined some key signs that your finance department is in the right place to start considering such a system.
We talk to companies every day who are looking to automate their accounts payable (AP) processes, and the burning question is always: How much will it cost us? And the answer is always the same: it depends. But that doesn’t mean you should be left in the dark. Here are the factors that influence the cost of the switch to an automated AP system, and what you should plan for when deciding.