One of the most difficult steps in your much-needed implementation of AP automation for your company could very well be getting your CFO onboard with the idea. Why? Well, CFOs have a number of concerns that need to be addressed before they commit to time and other resources for new projects or systems. It’s not that CFOs are all just naturally overly-cautious, but it is no secret that many of them are conservative by nature and committed to understanding the full scope of a project and the expected ROI before any commitments are made.
It’s a good thing for the most part, but sometimes it can slow down or impede progress in the for projects such as an accounts payable automation software implementation.
So, what is the major topic that you’ll need to make sure you are ready to address with your CFO to show him or her the benefits of AP automation for your entire company? it’s all about how much time and money can you save with an AP automation solution.
Saving time and money is naturally at the top of the list for any CFO and with information around the ROI you can get straight to the point with the proposed project. Research has shown that AP automation can potentially reduce the processing time for an invoice from $15.96 to $2.94. In addition, invoice processing time can be reduced from 16.6 days to 3.6 days.
If saving time and money isn’t enough for your CFO, then addressing the following concerns could help your case:
- Forecasting– Will AP automation improve forecasting? Yes, considerably, due to its 24/7 visibility in real-time, which provides info regarding the status and workflow of your invoices. As a result, you get better working capital and cash flow management.
- Profitability– Will it increase profitability? Yes, of course, it will. Without automation, you can potentially process 1,000 invoices while with AP automation and electronic invoicing, you could be processing 5,000 in the same amount of time. You get instant profitability via payment times that are sped up considerably, resulting in fewer fees for late payments and capturing more dynamic discounting.
- Compliance– Will it ease compliance issues? Absolutely! AP automation gives you more accuracy and an audit trail that is integrated with backups and complete documentation. It also makes your access to all of that important documentation when it’s needed much easier than paper docs ever could.