#PAYABLE AUTOMATION MANUAL#

According to a 2018 report by Goldman Sachs, B2B businesses in North America spend $187 billion annually on AP processing - and this estimate captures only direct processing and labor costs in fact, labor accounts for over 90% of direct costs incurred.The costs of automated AP processing, according to the same report, are only 33% of manual costs. Additionally, with manual AP systems, team members often spend hours on tasks such as searching for lost or misplaced invoices, and answering inquiry calls. These costs, when added up, can significantly impact the overall cost-effectiveness of the AP process. For example, even a single document scanned by a salaried clerk earning $40,000 per year can take 5 minutes of their time and result in an estimated cost per document of over $2.

While the costs associated with traditional paper-based payments such as check stock, envelopes, and postage are easily identifiable, there are also costs associated with the time spent on manual tasks related to processing payments. How much can a business save with AP automation?ĪP automation can bring cost savings to businesses by reducing labor costs and late fees.

AP automation can also help ensure compliance with regulatory and legal requirements and reduce the risk of fraud. By streamlining the payment process, businesses can increase their ability to capture supplier payment discounts and improve cash flow. Another valuable tool offered by AP automation is the ability to manage payments and cash flow efficiently. AP automation also reduces the risk of fraud and errors, leading to smoother audits and accurate financial records. As businesses grow, this automation can also aid in scaling AP processes without requiring additional hires. One of the most significant advantages is the reduction of processing costs by minimizing the need for manual effort. This includes improving accuracy, automatic invoice matching, integrating with accounting software, streamlining invoice approval and providing audit trails. What are the benefits of automated accounts payable?Īccounts payable automation offers various advantages that can significantly benefit businesses.

Payable automation