3 Reasons To Automate AP for Sage Intacct
1. Save money – reduce costs by up to 60%
Processing invoices manually is expensive. Research from Sterling Commerce shows that a manual process costs between $12 and $30 per invoice, on average. An Aberdeen Group whitepaper found that automating AP resulted in 40% to 60% savings compared to manual processing.
In other words, let’s say your current cost per invoice is $20 when you process it manually. Introducing AP automation software could reduce it to somewhere between $8 and $12. Imagine multiplying this saving across all your invoices each month or quarter, and it becomes pretty clear that AP automation can seriously increase the bottom line.
2. Save time – up to 70% less time spent than manual methods
Almost as important as the cost savings that are generated by AP automation is the time saving benefit. You can save as much as 70% when compared to manual processing, as automotive component manufacturer US Farathane discovered. In turn, this led to a 43% drop in associated costs. They were also able to increase invoice volume by 20% without taking on any extra staff in the accounts department.
Also, with an automated system, the turnaround time per invoice is significantly reduced. The Aberdeen Group revealed that companies who apply minimal automation take around 16.3 days to process an invoice. With AP automation this time period can be reduced significantly. A fully automated system can reduce both handling and cycle times.
3. Improve accuracy – reduce errors by up to 97%
Last but not least is accuracy. Using a manual method to handle and process invoices opens up the possibility of human error. This is especially true as a company grows and the accounts department struggles to keep up with the surge of invoices. Automating your AP process means that human error is limited or eliminated entirely. This helps you to save more money and improves your reputation with suppliers.