- Quadient Accounts Payable Automation by Beanworks surveyed 331 customers to calculate the expected savings from Accounts Payable automation. On average, accounting teams saved more than 38 hours per week.
- The time freed from manual processes allowed organizations to reallocate their resources. Increased attention to high-level tasks led to additional cost savings and improved long-term business planning.
- Quantifying the ROI of automation processes tells only part of the story. Giving space for special projects leads to a more productive, creative workforce.
Often, conversations around automation focus on what it can replace. Eliminating manual data entry, lagging workflows and redundant processes certainly saves time, but business leaders don’t always consider the specifics of what their teams could do with that time instead. This is human resource reallocation — a reimagining of what accounts payable teams are responsible for.
In Quadient AP’s recent webinar, AP Data from 331 Customers, account executive Nico McEown revealed the findings of an extensive survey of Quadient AP automation system users. Of the 331 organizations surveyed, the average AP workflow dropped from 80 hours per week to 41.84. At a rate of $30/hour, that’s a savings of $4,579 per month.
AP teams can immediately take that dollar value and reallocate it to high-level tasks. Here are the top four.
1. Accounts receivable
When asked where they’d add the time saved from AP automation, many Quadient AP's customers said accounts receivable. “Bringing money in is much, much more fun for the company than sending money out,” says Nico.
Accounts receivable has the potential to increase an organization’s cash flow. Quick invoice delivery and clear collections workflows make it easier for customers to pay and lower the average day's sales outstanding. The sooner a business receives cash, the faster it can scale operations.
Reallocating resources to AR gives accounting teams more brainpower to analyze predictive insights, more bandwidth to manage disputes and more flexibility to strategize. On average, Quadient AP's customers estimated they would give about 20% of their time saved through AP automation to their accounts receivable teams.
2. Vendor management
Poor vendor relationships are an unwelcome byproduct of overtasked AP teams. Comparison shopping and outreach negotiations can lower costs and streamline workflows in the long term, but many AP teams simply don’t have time for it. Of the companies surveyed, most spent an hour or less per week on vendor management.
Even something as simple as paying invoices on time can strengthen supplier relationships. Not owing late fees to vendors saves money and avoids disputes, offering more bargaining leverage for future contract renewals or service expansions.
Quadient AP's customers put 30% of their reallocated time toward building strong vendor partnerships. The money saved on AP redundancy can generate further savings with data-informed supplier decisions.
3. Budgeting and forecasting
On the topic of data, smarter budgeting is the next landing spot for reallocated resources. Survey respondents say they put about 20% of their recovered time here.
It’s no secret that economic forecasting is increasingly uncertain. The more minds dedicated to budgeting, the better an organization can monitor complex spending patterns and calculate the feasibility of new investments.
Proper auditing can also protect against losses. Everything from duplicate payments to miscategorized expenses can lead to cost overrun. By reallocating time to internal review and business forecasting, companies can gain a more accurate picture of their current strengths, weaknesses and opportunities.
Budgeting also supports another benefit of time saved from AP automation. Unused funds can go toward employee-driven special projects.
4. Special projects
It’s this last, catch-all category that Quadient AP's customers said they give about 30% of their reallocated hours. What defines a special project? It’s an opportunity for employees to bring their passions to work.
The Harvard Business Review cites passion opportunities as a key factor in employee retention. In other words, people feel alive and fulfilled when they have time to do what they love. Freeing up those hours through automation gives employees a unique opportunity.
Perhaps it’s as simple as more flexibility or time off. Although it may look like lost productivity on paper, the work is still accomplished through automation, and employees return to the office feeling recharged and motivated.
Similarly, employers can offer more opportunities for professional development. Empowering employees to lead and think creatively is a long-term investment into business development, yielding lower turnover, higher morale and interdisciplinary collaboration.
Calculating the ROI
Quadient AP saved 331 companies an average of $4,579 per month. These funds supported better customer and vendor relations, as well as smarter forecasting and improved workplace cultures. At Quadient AP, we believe any organization can save through automation.
By using our AP automation ROI calculator, you can determine the value of the time you’re likely to recover. Although it may not be money straight into the corporate bank account, the time savings go to other places in the organization. Reallocating resources to high-level tasks has proven to reduce costs and increase revenue.
