Benefits of AP Automation
To update a pitch deck by obtaining recent data on the benefits of AP automation (accounts payable automation). Any information provided by MasterCard should not be included.
- According to Insights Success, AP Automation enables businesses to save money, save time, and avoid errors.
- Businesses can use the automation system to reduce the amount of time used in handling payroll and payments.
- According to a report by the Institute of Finance and Management (IOFM), 63% of companies mention that reducing the costs of invoice-processing is their number one priority.
- The Accounts Payable Procure-to-Pay (APP2P) Network recently carried out a comparison between manual AP operation and a highly automated AP operation. The APP2P white paper found that "the average monthly cost to process 5,000 invoices is 85 percent less with automation."
- Increased productivity is another benefit of AP automation. Without an automated accounts payable process, transaction processing consumes 84% of staff time; this leaves only 16% of staff time for value-added activities.
- Automating AP automation results in earlier pay discounts. Approximately "80 percent of suppliers offer early payment discounts, and companies with significant automation can capture nearly 75 percent of them." An organization that only uses basic automation would also be able to capture 50% of these payment discounts.
- Also, automated AP processing helps businesses achieve faster cycle times. According to a report by Ardent Partners, the "best-in-class performers process a single invoice in 3.6 days, while most companies take 16.6 days." This statistic "explains why only four percent of businesses pay all their invoices on time".
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