The accounts payable automation benefits that are real, and their actual size

The benefits of accounts payable automation are real, well understood and consistently overstated by a factor that depends on your exception rate. Automation removes touches from invoices that behave: it reads the header, matches against the order, routes to an approver and chases them, and posts the result. That is genuinely most of the volume in a well-run payables function and a smaller share in a messy one. This page sizes each benefit against your own route rather than against a published percentage, because the difference between a 5% and a 20% exception rate changes the answer more than the choice of product does.

Fewer touches on the invoices that behave

The main benefit and the measurable one. On the worked example on this site, 400 invoices at three touches of six minutes with a 12% exception rate is 134.4 hours a month: $4,300.80 at a $32 loaded rate, $10.75 an invoice and $51,609.60 a year. The routine portion of that is what automation addresses, and it is the number to size the benefit against.

A faster and better-recorded approval

Chasing happens automatically and approval is recorded rather than sitting in an inbox. This helps the close more than it helps the cost, because the unapproved pile at cut-off is what pushes a close out.

A better audit trail, which is undersold

Every action dated and attributed, which turns audit preparation from reconstruction into a query. That benefit does not appear in most business cases and is often worth more than the hours. It is also the benefit that keeps returning every year rather than being banked once.

Questions people ask about accounts payable automation benefits

What benefit should we expect?

Not a percentage from us. Size the routine portion of your own cost and treat that as the ceiling, then discount it for the fact that automation is never complete.

Does automation reduce errors?

It removes transcription errors and introduces configuration errors. Net, usually better, and different in kind: configuration errors are systematic rather than random, which makes them larger when they happen.

Will suppliers notice?

If it speeds payment, yes, and it is worth telling them. Faster approval is a supplier relationship benefit that rarely appears in the business case.

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