Making the Case for AP Automation at Your Company

Less paper and manual entry. Fewer lost invoices and late payment fees. More early pay discounts. Increased efficiency and productivity overall. A more accurate and timelier picture of cash flow.

You’ve probably heard the advantages and arguments for fully automating accounts payable, and for moving past doing invoices and payments on paper or with only partially automated methods.

But whether you’re the CEO, the finance director, or in another role and have been convinced yourself, you still might need to justify the switch to others for it to occur and be well received. That’s true if you’re pushing down from the top or making a case to those higher up the food chain. Either way, it’s worth stressing that the result can be this: the clarity and confidence you now lack in spending decisions can become moments of certainty.

Helping others see the benefits of an automated accounts payable solution like Concur Invoice can take a multipronged approach. Numbers that demonstrate efficiencies and savings are, of course, a place to start. Backing them up with a more personal “what’s in it for you” strategy can be essential and effective.

What’s the company gain from AP automation?

Businesses that fully automate their invoicing and payment systems save money and time, both of which can be put to use elsewhere. The time saved is valuable, as finance and accounting team members can concentrate on higher-value work instead of pushing paper. In a competitive labor market, better and more satisfying work can translate into better hires and retention.

Accounts Payable Metrics that Matter quantifies some of the benefits that companies are seeing from automation. Here’s a quick look at results:

• Invoice processing time decreased by 82% to 3.1 days per invoice.
• Cost to process each invoice decreased by 80% to $2.78 per invoice.
• Invoice exceptions decreased by 59% to just 9%.

According to another recent research report, AP automation brings real results for companies.

• Companies with automated AP solutions process 64% more vendor invoices in a given month than users of non-automated AP.
• More than 66% of teams reported a decrease in costs of invoice processing after implementing an automated AP solution.
• Teams that reported a decrease in costs of invoice processing said that they experienced cost savings of 20%.

How to build the case for automation

In some ways, you’re fortunate to be making the case these days. Flexible work and the ever-competitive business environment have shown how important automation and easily accessible, cloud-based technology are to a company’s ability to operate.

That said, businesses can be resistant to change and concerned that a new solution might prove worse than the “good enough” they were using. Here are some approaches that can help you bring accounting, finance, IT and other key stakeholders aboard the automation team. These approaches demonstrate how a comprehensive invoice and payment system can make their lives better and help the business grow and succeed. That last one is something everyone has a stake in.

Managers and the finance team

From department managers who must review and approve invoices to members of your finance and accounting teams who process them and reconcile budgets, no one enjoys manual, tedious work. It’s a drain on their time and not, mostly, what they were trained to do. They bear the brunt of the dissatisfaction when vendors don’t get paid on time. Initiating a conversation about automation can pave the way for substantial improvements.

• Talk to them about how automation can improve submittals and approvals.
• Discuss how they won’t have to regularly track down invoices that go astray.
• Highlight how late payment fees could be avoided and how the company could earn more discounts.
• Explain how they could better watch cash flow and focus on the work that matters most.

The IT department

The questions anyone handling information technology at your company ask will likely zero in on support, integration, security, and the time involved.

You can reassure them that automation solutions:

• Connect with existing systems and won’t require new integrations.
• Use cloud-based technology that simplifies updates.
• Meet compliance and security standards.
• Offer training, resources, and other support.

Top leaders and owners

This conversation probably will circle back to cost at first, so have those money, time, and payback stats in hand. Then be ready to talk about how an automation solution could be implemented quickly and securely and could grow as the company does. You can explain how compliance and employee satisfaction could both improve, ultimately leading to a more streamlined workflow.

Making a Case, Doing the Math

Don’t forget to emphasize to fellow employees that, with a better grasp of cash flow, they can have the information to make better, more strategic decisions for the business and its future. That they’ll have moments of clarity instead of uncertainty with each spending decision. By taking the time to share what you’ve come to know about automating accounts payable, you likely can build a pool of allies. And then the question won’t be whether to automate but how soon.

• For a more detailed look at strategies advocating for invoice automation, read our E-book Building a Business Case for AP Automation.
• To tally how your business could save with automation, try our Concur Invoice Business ROI Calculator.