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How Much Does AP Automation Really Cost?

25th May 2023
Brought to you by
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Kefron provides a range of information management solutions including Document Scanning, Accounts...
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AP Automation Cost
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In the ever-evolving landscape of modern business, leveraging technology to maximise efficiency is no longer a luxury, but a strategic necessity. At the forefront of this transformation lies AP (Accounts Payable) automation, a solution designed to revolutionise payment processes and deliver unparalleled value. However, the lingering question of cost can overshadow its merits, leaving many businesses hesitant to embrace this cutting-edge technology.  

With 50+ solutions offering AP Automation, how can you measure value against the cost of the solution?  

The Cost of AP Automation and Invoices 

There are a variety of pricing options available for AP automation. The cost is based on one or more of the following, depending on the provider: 

  • Cost per invoice processed,  
  • Price per user licence,  
  • Cost per page of document,  
  • Cost per line of data on each document, 
  • Monthly flat fee. 

Kefron AP pricing is based on cost per invoice. The price is tailored to you and your needs. So, you’re not paying for unprocessed invoices. To manually process a single invoice can cost between £25 and £40. AP automation can save your team up to £16 per invoice. How does it save that money?  

Return on Investment (ROI) 

Once you understand the different costs associated with the numerous AP automation vendors, you need to consider the value of the solution relative to your AP process. Which of the following benefits highlight challenges in your finance team? 

1. Reduced Errors: Human error is unavoidable when manually inputting data. It’s hard to concentrate on such a mundane repetitive task and easy to hit the wrong key – we’ve all done it! Mistakes in invoice processing can have serious consequences, especially if not caught early. An AP automation solution does the proofreading for you. Any mistakes are highlighted to the relevant parties immediately for resolution. This means no mistakes get through and can be fixed ASAP. No more wasting time trawling through invoices looking for, and correcting, errors.  

2. Time Saved: Finance and insurance staff spend over half their time collecting and processing data. Invoices play a large part in this. Invoices play a large part in this. Manually processing invoices takes up too much of your team’s valuable time. Chasing people to approve invoices makes this even worse. And could lead to working overtime to ensure suppliers are paid on time. It’s a waste of everyone’s time.  This could be dedicated to more value-added work, such as analysing cashflow. AP automation streamlines invoice processing, saving your team from time consuming tedious tasks. 

3. Better Resource Management: With all this time saved, your team can focus on work that better serves your business.  Automation means your suppliers are paid on time. This establishes you as a reliable and trustworthy business. Building on these good business relations is vital to grow your business. Focus can be put on this and on analysing and improving cashflows. This is even more achievable with the dashboards offered by AP automation providers. 

4. Improved Visibility and Control: Dashboards offered by AP automation providers allow for better visibility and control. The types of dashboards are dependent on the provider. Nevertheless, they provide accurate, real-time statistics surrounding your invoice processing. Having your invoices in the one place, and fully text searchable, makes finding information a breeze. With better visibility and control your AP team can better analyse your business’ cashflows and budget accordingly. 

5. Superior Compliance: AP automation systems can help companies comply with AP related regulations and policies. By providing visibility into the process, you can identify and address compliance issues. A full digital audit trail is maintained throughout an invoice’s lifetime. You can see who is responsible for every action and when they happened. Your company admin controls access to the system so users see only what they need to complete specific tasks. You can choose whether someone can only view certain invoices, or whether they can edit or approve invoices.  

This ensures sensitive information isn’t viewed nor edited by unauthorised parties. AP automation often makes invoices text searchable, so they’re easy to find during an audit. This significantly reduces the risk of fines and other penalties. Yet another way that AP automation saves your business money. 

How Companies Measure ROI with Kefron AP 

Many of Kefron’s clients have seen how AP automation benefits them and we have the proof below:  

ROI
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And for SMEs who don’t process thousands of invoices a month, don’t worry! The figures below show how a medium sizes company benefits from AP automation: 

ROI
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So, how much AP automation costs depends on your business. What is clear though, is that it is worth the investment. It saves you and your company time and money, allowing you to focus on what really matters to your business. In fact, 67% of accountants prefer cloud accounting over more traditional systems. 

To invest in your AP automation future, download our comprehensive Buyer’s Guide or chat to one of our experts today