A while back, we hosted a webinar where we delved deep into the realm of AP automation solutions and their profound impact on saving invoice processing costs. The enlightening discussions during the webinar uncovered a surprising reality: a substantial portion of business owners are unaware of the transformative potential that automation tools hold for notable cost savings. This realization spurred us to explore the questions and comments shared by our webinar attendees, which paint a vivid picture of the curiosity and eagerness to understand how embracing automation can indeed translate into tangible financial benefits.
Some of the questions asked by our attendees were:
Can AP automation truly reduce our business expenses?
How can AP automation streamline supplier management and lower costs?
Can AP automation really prevent costly errors?
What’s “shadow spending,” and how can AP automation curb it effectively?
In this blog, we will delve into the world of AP automation solutions and explore their profound impact on reducing operational expenses. From preventing costly errors to streamlining
supplier management, let’s uncover how embracing AP automation can enhance your financial outcomes.
The Toll of Manual Processes: A Costly Affair
Manual processes within the Accounts Payable (AP) world come with an unexpected price tag. While they might seem straightforward on the surface, the labor-intensive nature of these processes reveals a deeper financial impact. From human error to delayed approvals, the costs accumulate.
Unveil the Hidden Costs
Manual AP processes might seem simple, but their labor-intensive nature conceals unexpected costs. QUICK FACT – Processing a SINGLE invoice can cost your company anywhere from $14 to $20. If your company processes 25,000 invoices per year at $15 per invoice, they will spend $375,000 on invoice processing alone! These processes are prone to human errors, leading to invoice discrepancies and payment disputes. These expenses add up quickly, chipping away at your bottom line.
Impact of Delayed Approvals on Cash Flow
The prolonged approval cycles in manual AP processes can strain your cash flow. In contrast, automated AP workflows ensure timely invoice routing, approval, and payment, reducing the time it takes for funds to move from your business to suppliers. This optimization can significantly impact on your liquidity and operational efficiency.
Read More at https://pathquest.com/knowledge-center/blogs/save-invoice-processing-cost-with-ap-automation-guide/
