It's widely know that accounts payable automation can streamline invoice processing and vendor payments, but the value of AP automation goes beyond financial benefits. Let's look at a hypothetical story to explore the financial and human value of digitizing vendor invoice processing and streamlining payments.
A Story About AP Automation Value
An accounting director for a small business is growing increasingly frustrated with a sluggish paper-based vendor invoice process that’s costing about $9 per invoice. They want to save time and costs, but more importantly, they want to find more joy at work by eliminating a major pain point.
It's time to find a solution to digitize vendor invoice processing and the entire accounts payable process.
Financial Value
The accounting director implements an AP automation solution with integration to ERP. Their new system includes the following:
- 1,000 Monthly Invoices
- Optical Character Recognition (Data Capture)
- 3 administrator users
- 20 approvers
- 2 approvals per invoice
Based on this case, Fidesic's ROI calculator says the company’s average cost per invoice would drop to just $2.28 almost a 75% decrease. The company would also save 275 hours and about $6,600 per month.
The Human Value
With lost invoices, stalled invoices and frequent errors, the accounting director was often stressed out, particularly at month-end closing time. Finding joy in their job became increasingly out of reach.
- By eliminating these problems with AP automation, they are able to eliminate a significant pain point in their job.
- Now with the ability to work remotely, the team is able to avoid traffic and improve their work-life balance.
- With time saved, they are able to find more joy in their jobs
