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Filing Away Inefficiency: The ROI of Electronic Invoicing


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FilingAwayInefficiency
“What will my ROI be after implementing AP automation?”

That’s one of the first questions asked by AP managers or CFOs interested in e-invoicing or AP automation solutions. It’s a tough one to answer, and not because it is hard to calculate.

After all, we have a new AP automation ROI calculator that can give you a good idea as to your potential savings by looking at the size of your AP staff and the number of invoices and payments your company processes every month.

That’s looking at the big picture. Many in the financial industry are meticulous about analyzing the entire process, determining the benefits and ROI inherent at every stage of your workflow process.

That’s why during the month of April, we have been discussing the topic of ROI on the AvidXchange blog. We examined ROI as it relates to every step in the AP automation process, from an automated invoice workflow to AP and payment automation. We wrote about how to define the ROI of AP automation, and then we talked about how AP managers and CFOs might define that ROI differently. We even told you how you could help present a business case to your CFO of the ROI of AP automation.

 

But every journey starts with a single step. In the case of AP automation, that first step is electronic invoicing (or e-invoicing).

What is the ROI of e-invoicing?

Before we begin, I’m going to ask you to walk over to your filing cabinet. Grab the handle, slide open the drawer, and gaze with wonder -- or perhaps trepidation -- at the sheer amount of paper you work with every day.

Chances are, you have a sizeable amount of time and money invested in the very first step of the AP process: invoicing. You may be so immersed in your current practices that you don’t realize how much time and money this first step actually requires.

Consider the costs associated with the invoice itself: the paper upon which it’s printed, the envelope into which it’s stuffed, the postage required. And this is to say nothing of the time and labor involved with having to process these invoices the manual way.

These have likely been part of your AP process for years, and perhaps you’ve never stopped to think about the amount spent on what you might consider a cost of doing business.

You can save your company thousands of dollars by eliminating this stage and introducing an electronic invoicing system (also known as e-invoicing). Through a paperless AP system, you will not only cut the aforementioned costs related to the invoices themselves, but you will likely also save money from the efficiency inherent in such a system. Having greater control and visibility means fewer data entry errors, duplicate invoices, late fees and fraud. All of this is more easily detected through an automated AP process where you can see all of your files digitally, as well as the history and conversation surrounding each invoice.

Does that sound like a huge change from your current process? Believe it or not, it isn’t. This is the same process you have always followed – we’re just cutting the costs associated with physical invoices and granting you greater visibility through cloud-based AP automation.

We invite you to try our new accounts payable ROI calculator to get a general idea as to the costs you could be saving your company. We think you'll be surprised at how quickly all of that paper adds up.

by AvidXchange

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