You may have heard that AP automation software speeds invoice processing, reduces errors, and increases efficiency—meaning there are many reasons to embrace it. But, only 39% of organizations have invested in Accounts Payable technology to date. Why? What could be holding those who haven’t adopted it back?
However, there are still plenty of reasons why organizations don’t make the switch. For example, the business:
- Didn’t plan for the expenditure
- Doesn’t have time to implement a new technology and retrain already stretched teams
- Doesn't have a case for the ROI
Making the case for AP automation
The good news is your exec team wants this. They just don’t know it yet…
Almost 40% of CFOs worldwide report that they don’t completely trust the accuracy of their information, and that number is higher for the CEO. Yet according to KPMG, “CEOs want to use data to transform their organizations and drive future growth.” Meanwhile, Gartner shares that the top three CEO/CFO concerns are:
- Growth: The Gartner report shares: “Balancing future growth investments and CEO expectations while still tightly managing cost and cashflow is the tightrope CFOs must walk.”
- Keep investing in technology: Both CEOs and CFOs cite enabling technologies as one of their organization’s top priorities.
- Prioritize workforce issues and address the talent shortage:
But have no fear: all these issues can be addressed head on by AP automation. You just need to make a business case first.
Four steps to making the case for AP automation
The C-suite will always entertain a project that will save money, reduce risk, and increase productivity, which is all in reach with AP automation. By going through each of these steps and mapping out a justification backed by stats and figures, you can easily convince your executives that a solution will be a strategic advantage to your organization.
Step 1: Establish inputs
First, you need to collect information regarding key items and metrics, including:
- Current and estimated go-live dates
- Project schedule
- Go-live workdays
- Hourly rate
- Monthly AP budget
- Standard week hours
- Monthly subscription cost
- FTE numbers
- Additional information like discounts and overtime
Step 2: Document and define the automation
Next, you must define the areas you’re planning to automate. Typical tasks and functions include:
- Data entry
- Approval processes/PO matching
- Payment processes
- Expense reconciliation
- Audit, scanning, and digital filing
For each of the above, calculate how much time is currently spent monthly and how much can be saved. To do that, you will need total resource hours, percentage of time spent on each task, and overall time spent.
Step 3: Determine implications
Once you have your data, you need to identify the impact of moving forward. Who needs to be involved? What will be the effect on the organization during the change and after? What will you need to do to retrain your teams and ensure a smooth transition?
Step 4: Prepare to reallocate time
Finally, let the business know what your teams will be doing with the time they’re saving on manual tasks. That means explaining how resources can be reallocated to more strategic activities.
Quadient AP by Beanworks can help in your AP Automation business case efforts. Access our ROI calculator to get the numbers you need at https://www.quadient.com/en/ap-automation/roi-calculator
BAASS Business Solutions has been a valuable partner of Quadient AP for years, collaborating to deliver successful AP automation implementations for our clients.
However, successfully implementing any new technology requires a thorough understanding of your current state. This is where BAASS Business Solutions' implementation methodology shines.
BAASS Requirements Gathering: The Foundation for Success
During this crucial phase, our team works closely with yours to understand your unique AP processes, pain points, and desired outcomes. Our team works closely with you to:
- Identify current pain points: We delve into your existing AP processes, pinpointing areas ripe for automation.
- Define automation goals: What do you hope to achieve with automation? Faster processing times? Improved data visibility? We ensure alignment between your goals and the chosen solution.
- Map out your workflow: A clear understanding of your invoice processing journey allows for a tailored implementation that seamlessly integrates with your existing systems.
Contact BAASS Business Solutions today for a free consultation and discover how AP automation can transform your finance function.
Sources:
- https://www.journalofaccountancy.com/news/2024/jan/finance-leaders-have-trust-issues-with-their-data.html
- https://www.gartner.com/en/articles/what-matters-to-ceos-and-cfos-right-now#:~:text=CEOs%20and%20CFOs%20are%20under,up%20from%2059%25%20in%202022.
