5 Factors to Measure ROI in AP Automation

We can identify critical opportunities for improvement and calculate the return on investment of AP automation by monitoring, evaluating, and measuring the Accounts Payable operations. It enables us to assess the effectiveness of our current AP operations and address root causes more successfully.

Organizations are increasingly realizing the potential of automating their AP operations. AP invoice automation has changed how businesses handle and pay invoices by enabling them to conduct their AP procedures electronically as opposed to manually. Because of this, it's crucial to track, examine, and make any necessary adjustments to the workflow and their effects on ROI whenever we alter any important AP automation processes.

But how can you convince the important decision-makers in your organization of the benefits of AP automation from Skyscend? You may also be the main decision-maker, attempting to assess the ROI of AP automation spending. Simply hold on and relish the journey!

What is AP Automation's Real Return on Investment?

ROI is quite easy to determine when it comes to marketing. Your ROI is calculated by deducting the cost of a campaign from the income it generated. Calculating the ROI of AP automation can be a little more difficult.

It affects a wide range of facets of your company. Additionally, savings grow as volume rises. Additionally, it can be challenging to compute some savings. What benefit, for instance, might come from a less frustrating procedure? Let's begin by talking about the financial advantages of AP automation software.

1. The Return on Investment for AP Automation

Most businesses are focused on the financial advantages when it comes to AP automation. The average numbers are encouraging, but the precise figures will rely on your sector, how much your business invoices each quarter, and how much you already spend.

2. Reduce the cost of processing invoices

According to one study, the average business pays $15–$20 on each invoice that is processed manually as opposed to approximately $3 for an automated invoice. Depending on how many invoices your company functions each month, this might easily result in annual savings of hundreds of dollars or even thousands of dollars.

3. Reduce Error-Related Losses

Despite your AP department's best efforts, mistakes still occur. A $400 invoice can become a $4,000 invoice with the touch of a finger. Or, if an invoice was delivered to two separate departments, it might have received a double payment.

Although the errors can be corrected, doing so has a price. By minimizing human data entry and simplifying communication with suppliers, approvers, and the AP department, AP automation can help eliminate errors.

4. Save time and avoid late fees

Automation can reduce the normal cycle for settling an invoice from 14 days to 3 days. Accelerating the financing process can help reduce the $3 trillion in annual late penalties that firms incur.

Wrapping Up

Measures to monitor performance should be taken after introducing a new system. You and the AP team can increase productivity and boost revenue in your AP department by tracking the ROI of AP automation. Companies can alter their AP automation processes to reduce expensive errors and boost ROI.

Skilled consultants from Skyscend would be pleased to help you with this procedure. They can explain to you in detail what AP automation solutions can achieve for your business and how you can effortlessly incorporate it into current processes and systems. To learn more about what Skyscend AP Automation can offer for your company, contact the team or read more about how to install AP automation for your business.

By introducing easy, seamless, and transparent just-in-time-finance options for suppliers & subcontractors – we solve one of the largest challenges in the business – cash flow and liquidity.

We drive efficiency, productivity, and a synergistic, beneficial & profitable partnership between all actors within the construction supply-chain ecosystem.

So, what are you waiting for?

Book a demo, now!

https://apautomation.skyscend.com/