Five steps for building your AP automation business case

Connect your automation project to the company’s strategic objectives. Senior leaders are

more likely to approve projects that support broader company goals, such as:

• Mitigating fraud risk: Manual processes are more vulnerable to fraud attempts, positioning AP automation as an effective way to fight back.
• Maximizing resources and minimizing overhead: Eliminating repetitive manual work saves time and frees up existing resources for more value-added tasks — without increasing costs.
• Cashflow optimization: Automation could mean faster approvals and better working capital management.
• Improved vendor relationships: Consider how seamless processes could allow you to build stronger partnerships with your vendors, helping to eliminate frustrating delays and provide real-time visibility into payment status.

Focus on the impact on return on investment (ROI). While there’s an upfront cost for any major project, both in terms of the technology implementation and in people, show how automated solutions can maximize the use of those dollars and deliver a positive return in short order. Consider how different scenarios could unfold and map out the ROI implications for your company.

Define who will be involved in decision-making and implementation, including stakeholders from finance, procurement, IT and AP. While these decision-makers are important, remember that the employees who are actually doing the work are also an impactful voice. To help the smooth transition and implementation of an automated AP solution, ensure that the communication path between the executive level and the front line is clear. You’ll also need to be ready for questions about:

• Costs: Highlight the total cost of undertaking this project versus living with current inefficiencies, which may become unsustainable.
• Integration: Help stakeholders understand how new technology can integrate with existing systems, as well as the benefits of working with a trusted partner to smooth the way.
• Team resources: Cost-effective automation can free up employees to take on more strategic efforts. It can also help with recruitment and retention — employees who have grown up with a digital-first mindset have less appetite for the risks that come with manual processes.

While the initial investment in time and resources needs to be considered, can the company reach its goals by carrying on as before? Think about how automation could shorten the time it takes to achieve certain milestones, like financial, technology or vendor relationship goals. For example, automation could accelerate the invoice process, reduce error rates and improve accuracy, leading to smoother processing, as well as time and resource savings.

Stakeholders will naturally want to know how soon ROI improvements will emerge. Setting and communicating clear efficiency metrics can help track how automation is meeting its goals. You’ll need to document:

• Direct savings, such as lower costs per invoice, reduced need for paper, fewer manual errors and fewer opportunities for fraud.
• Indirect savings, including the time you’ve freed up for strategic work, improved job satisfaction as repetitive tasks are eliminated, increased vendor satisfaction, plus new revenue streams arising from rebate income.
• Soft benefits, like more visibility and control, and improvements in compliance and monitoring.