- CFOs and finance executives are eager to digitise processes and reduce AP costs, in light of widespread predictions of a 2023 recession.
- AP automation allows organisations to achieve key metrics of success and overcome the limitations of manual processes.
- Not quite convinced? We’ve gathered 10 statistics showing how automation has the power to transform the accounts payable function and reach the goals of employees and company leadership alike.
As humans, we often avoid change for as long as possible. The comfort and familiarity of the status quo make it easy to simply do things the way we’ve always done them — in our personal lives and in the workplace.
But think of the tools you consider essential in your daily life, from your smartphone to your air fryer. You may not have always had them, but they make your life easier — and now, you wouldn’t trade them.
For finance teams, AP automation technology is one such tool — offering savings, improved productivity and risk reduction benefits that businesses can’t afford to go without.
10 statistics on the power of AP automation
These 10 statistics, shared in a Quadient webinar, show how AP aligns with business success — and how automation can further empower the AP function. They highlight finance executives’ most pressing priorities, the measurable drawbacks of manual processes and the major improvements that come with AP automation.
1. Three-fourths of CFOs predicted a recession in 2023.
For months, speculation has swirled about what this year would hold for the economy amidst inflation, the Russia-Ukraine war and widespread layoffs. Last year, 77% of CFOs anticipated a recession in 2023 — and believed it would come sooner than later.
With the first half of 2023 nearly behind us, over half of CFOs remain confident of a recession in the second half of 2023. Just over one-fourth of those surveyed have shifted their prediction to early 2024.
Whichever prophecy holds true, the market remains volatile and business leaders are wary. As revenue becomes more uncertain, managing costs grows more critical for businesses in every sector, and prudent organisations look for any chance to save.
2. Nearly 45% of finance executives list lowering invoice processing costs as their greatest AP-related concern.
While AP processes offer several areas to cut costs, close to half of finance leaders point to invoice processing as a top priority. Manual invoicing costs range from the hard costs of postage and paper to soft factors, such as time wasted by approval delays.
Though the drawbacks of these outdated AP methods are well known, paper checks still make up 40% of transactions — leaving plenty of opportunity for organisations to modernise their workflows.
3. Eighty-six percent of CFOs surveyed cited digitisation of finance processes as the key to their company’s success.
Using physical documents for invoices and other AP paperwork isn’t just more costly. It also leaves organisations more vulnerable to fraud, which can cause drastic damage to the health of a business should the worst happen.
What’s more, physical documents are easily lost or damaged, they can be unwieldy to manage (think filing cabinets filled with invoices and purchase orders) and they’re unfriendly to remote work. It’s no wonder that 86% of CFOs are eager for AP digitisation — and, in fact, view it as central to the success of their organisations.
4. For 59% of employees, tools and technology are at the top of their list of considerations for their next role.
More than half of today’s workers are interested in working for companies that provide their staff with the right tech stack. These workers want their next employer to invest in tools that will make their lives easier — not because they’re lazy, but for the opposite reason.
Potential hires want automation to help streamline the repetitive tasks that can all too easily fill their days. That way, they can spend their time on more interesting and challenging work that drives value for the organisation — rather than being bogged down by manual tasks.
AP is no exception. Accountants know the burnout that comes with an overabundance of tedious manual tasks like data entry. With the help of AP automation, organizations can equip their finance teams to simplify manual processes and spend their time on higher-value activities. This leads to greater employee satisfaction and a more productive business.
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5. More than one in 10 documents is misplaced.
According to the Association for Intel Information Management, 7.5% of all documents get lost and another 3% is misfiled. These statistics demonstrate one of the clearest issues with physical documents: the inefficiencies they present.
When AP teams must track down one out of every 10 of the documents they need, they’re forced to waste valuable time that could’ve been spent on other essential functions. These wild goose chases are entirely preventable with the help of AP automation. Digitized documents are much harder to misplace, helping teams stay organized and efficient.
6. 76% of office workers spend up to three hours per day on data entry.
While some workers might find themselves enthralled by the prospect of hours of tedious data entry, these happy few are the exception rather than the rule.
Data entry plagues AP teams, and the task is even more burdensome because they have to enter data into multiple sources. Not only is manual data unpleasant and unnecessarily time-consuming — it’s also error-prone. But this state of AP affairs doesn’t have to continue.
7. Invoice automation reduces data entry by over 80%.
By automatically capturing invoice details from descriptions to unit costs and quantities, automation dramatically cuts manual data entry for AP teams and minimises human error.
The power of invoice automation extends to approval processes, which organisations can customise and route based on their unique needs. Automation also simplifies the process of searching for invoices. With Sage AP automation, you simply type in the details of the invoice you need and the system will do the work for you.
8. Automation can bring down the cost of processing a paper-based invoice from £12 to £3 or less.
The cost of processing a single paper invoice is a drop in the bucket for most organisations, but a steady drip can fill a bucket in no time — leading to spiralling costs
AP automation slashes the cost of a single invoice by 80% or more. For companies that process around 500 invoices each month, this means an annual savings of between £60,000 and £70,000. Whether your company is in a season of growth or budget cuts, those cost savings go a long way toward shoring up the health of the business.
9. Redeployment of FTE by automating repetitive tasks can save up to £300K per year.
Imagine how much your finance team could accomplish when AP automation streamlines repetitive manual processes like invoice validation and approval correspondence. Automating these kinds of tasks can save mid-to-large enterprises anywhere from £250,000 to £300,000 annually by redeploying your team.
Not only will your team members be able to focus on higher-value activities, but they’ll also be able to say goodbye to overtime spent keying in invoices in favour of a more balanced and less burnt-out life.
10. AP automation can save your organisation more than 70% of the time spent on accounts payable.
With manual methods, finance teams can typically process around five invoices per hour.
Through the power of AP automation, this number jumps to 30 invoices per hour. This dramatic increase in productivity means your organization can save between 70% and 80% of the time typically spent on AP activities.
Transform your business with AP automation
If you’re ready to reduce costs and improve AP workflows from end to end, Quadient AP is here to help.
Automate invoices and streamline processes for expenses, payments, and purchase orders for a more productive and profitable business.
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Quadient AP is reshaping accounts payable with leading automation tools. Learn more about how Quadient empowers modern finance teams with the efficiency they need, and request a demo today.
