AP automation software is a sound investment for businesses of all sizes. It can help you save time, money, improve accuracy, and reduce fraud.

In this blog post, we will discuss what is AP automation, the benefits of AP automation, calculating ROI, and tips to maximize your investment. 

What is AP Automation?

AP automation is the use of software to automate the accounts payable process. This includes tasks such as email box maintenance,  invoice processing, approval, and payment. AP automation can help you streamline your AP processes, improve accuracy, and reduce costs.

The Benefits of AP Automation

There are many benefits to AP automation, including:

  • Reduction in labor costs: Manual AP requires a significant amount of labor, including the time spent keying in invoices, matching invoices to purchase orders, and approving payments. Automating AP can free up employees to focus on other tasks, such as customer service or sales.
  • Cost savings: AP automation can help you save money by reducing errors and late payments. It can also help you negotiate better payment terms with vendors.
  • Improved accuracy: Humans make mistakes. AP automation can help you improve accuracy by eliminating human errors. This can help you avoid costly mistakes, such as paying the wrong amount or paying an invoice twice.
  • Reduced fraud: Manual AP can be susceptible to fraud. For example, a dishonest employee could approve payments for invoices that were never received. Automating AP can help to reduce the risk of fraud by providing a more secure way to process payments.
  • Increased cash flow visibility: With manual AP your company often has no visibility into your true cash balance. Often times liabilities can't be accrued because invoices haven't been entered into your ERP. The paper invoice may be on a desk waiting to be entered or hiding in someone's email inbox. AP automation provides you with visibility once you receive an invoice. 

How to Calculate the ROI of AP Automation

The ROI of AP automation can vary depending on your business size and needs. However, there are a few best practices you can do to estimate the ROI for your business:

  1. Identify your current AP costs. This includes the cost of labor, paper processing, late payments, and fraud.
  2. Estimate the savings you can expect from AP automation. This includes the time savings, cost savings, and fraud reduction.
  3. Calculate the payback period. This is the amount of time it takes to recover the cost of your AP automation investment.

Tips for Getting the Most Out of Your AP Automation Investment

Here are four considerations for getting the most out of your AP automation investment:

  • Choose the right AP automation solution for your business. There are many different AP automation solutions available, so it is important to choose one that meets your specific needs.
  • Implement the AP automation solution correctly. The success of AP automation depends on the correct implementation of the solution.
  • Train your employees on how to use the AP automation solution. Employees need to be trained on how to use the AP automation solution in order to get the most out of it.
  • Monitor the AP automation solution to ensure that it is working properly and that it is saving you money.


AP automation is a sound investment that can help you save time, money, and improve accuracy. By following the tips in this blog post, you can get the most out of your AP automation investment. If you are interested in learning more about calculating your ROI, contact us today. 


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