The invoicing process had gotten so intense for the accountant at a Tennessee insulation manufacturer that she was replacing her keyboard every six months. She kept wearing the letters off.
Then her company adopted an automated invoice solution.
Month-end close time went from five business days to two. Report time shrank to almost nothing. The company stopped needing new filing cabinets every year. And, as she put it, got to “actually be an accountant.”
Remove the drudgery
Accounts payable automation can do all that for you. A primary value-add for automation is the ability to speed up invoice capture and payment, provide visibility into every step of the process, and free up the AP team to do the work they love.
Ah, but how do you get there if you’re mired in manual or semi-automated processes?
It can be challenging to create change if you’re not in a decision-making position. It’s especially difficult when your day job is already wearing you down to the nub. And, frankly, the idea of automation can be scary. For a lot of professionals, there’s the nagging worry that it’s going to take away their jobs.
We have some recommendations below to help you present your case, but we’re also here to encourage you to make the case – soon!
Here’s how to do that.
How to build the business case for vendor invoice automation
Fortunately, there’s a process to follow. (Disclaimer: Like any good process, it’s simple but not easy).
- Frame the argument: You’ll need to get buy-in from your company’s financial leader (the CFO or equivalent). The main thing for them to know and for you to keep in mind is that there’s a better way for AP professionals to use their time – one that will allow you to be more strategic and create more value for the company.
For example, if you’re not manually keying invoices or tracking down approvers, you can spend your time:
- Calling vendors and negotiating better payment terms
- Removing bottlenecks
- Reconciling company cash-flow projections with planned initiatives
- Moving payments into an ACH system
- Exploring virtual-card payment options that will give you cash back
- Gather data. Leadership will want to see numbers. Here are three places to start:
- Case studies: You don’t need a ton. Just pick 3–5 that are similar to your company’s size and industry. You can find a slew of them on the SAP Concur case study page. For example, Concur Invoice helps the Simons Foundation save approximately 100 hours a month on the overall invoice process.
- Industry statistics: Have some figures on hand that demonstrate the value of automation for both the AP team and the business as a whole. For example, did you know that automation helps accounting/finance employees reduce invoice processing time by 16%? (It does.) Or that an integrated expense, travel, and invoice solution saves them each 500 hours per year? (It does.)
- Your own company data: You need to show your leadership team the high cost of manual processes by letting them know how much time you’re spending on day-to-day tasks. This is the hardest data to gather, because you’re already so busy. But it’s also crucial. Benchmark the time you spend tracking down approvals and communicate how much time erroneous invoices are costing you. (We have a calculator that can help.) Your executive team will insist on that raw data. Yes, it can feel daunting. Yes, you can do it. Yes, it’s worth it!
- Make your pitch: Presenting to your financial leader may seem intimidating, but keep in mind that you want to help the business and leadership wants to help you. Present your argument, let them know what you’re trying to do, and suggest the solution. Once you’ve compiled the data we’ve outlined, you’ll have all the conviction and authority you’ll need to make your case.
Let them know that with automation, everybody wins.
Stay strong, and get in touch if you have questions – even if you’re just looking for pitch-meeting tips. We can and do help companies all the time.
Want more? Check out the guide, How Automating Your AP Invoice Processes Saves Finance Leaders Money and Drives Growth, to get more insights and data to help make your case.