Automating accounts payable is a cost-effective, low-effort alternative to other digital transformation projects, but its benefits are both immediate and widespread. With all the advantages of automating AP, adopting this technology should be a no-brainer. But where do you begin?
Whether you are just beginning your automation journey or looking to improve your existing AP automation efforts, the abundance of available solutions, software, and tools can be overwhelming. In this article, we’ll cover how you can build the best business case for AP automation and cover the following:
5 Steps to Building a Business Case for AP Automation
- Identify the current state of your AP process: Start by analyzing your current AP process to identify pain points, inefficiencies, and bottlenecks. Consider manual data entry, paper-based invoices, delayed approvals, errors, and duplicated efforts.
- Quantify the potential benefits of AP automation: Next, estimate the potential benefits of AP automation. This may include cost savings, increased efficiency, improved accuracy, faster processing times, better cash management, and enhanced visibility and control.
- Calculate the ROI of AP automation: Once you have estimated the potential benefits of AP automation, you can calculate the project’s return on investment (ROI). This involves comparing the costs of implementing AP automation to the projected financial benefits and determining the payback period.
- Develop a business case: Use the data gathered in the previous steps to develop a comprehensive business case for AP automation. This should include a detailed cost-benefit analysis, an assessment of the risks and challenges associated with the project, and a timeline for implementation.
- Present the business case to stakeholders: Finally, present the business case to key stakeholders, such as senior executives, finance, and IT teams. Be sure to highlight the potential benefits of AP automation, the ROI of the project, and the timeline for implementation. Address any concerns or objections raised by stakeholders, and provide a clear plan for moving forward with the project.
By following these five steps, you can build a persuasive business case for AP automation that demonstrates the potential benefits and ROI of the project, and helps to secure buy-in from stakeholders.
With Itemize, clients have saved up to 60% while streamlining their AP processes. Find out if our automation platform is right for you, and get your one-on-one demo today.