Thinking about automating AP processes to rake in big savings? Start here.
In the midst of searching for the perfect system, one of the most important parts of the process can be overlooked: figuring out the current cost of what you want to automate — whether it’s invoices, payments, etc.
The complexity of the calculation can vary greatly, but this simple equation gives a pretty clear picture of your costs:
A/P salary (benefits included) ÷ the # of items processed = current cost
It’s also important to avoid including certain costs that remain part of your AP process, automated or not. Example: Certain overhead costs will not change even if you automate billing.
Of course, a detailed analysis of your current A/P process costs may reveal that a costly switch to automation isn’t worth it just yet.