What Does AP Automation Actually Cost?
You’ve heard AP automation will save you money. That sounds great, but you want a more precise answer about the actual costs. Exactly how much money does automating your AP department really involve?
Giving an exact answer is a bit complicated. Different types of AP automation have different pricing models and it often varies depending on the size of your business. But the bottom line is AP automation saves most companies significant amounts of money and it’s well-worth taking a closer look at how it can help your business.
How We Price
We base the pricing for NextProcess on software used and expected transactional volume. Most of the SaaS modules we offer are document focused and we charge per document processed. We also offer discounts for higher volumes. For non-document software like Capital Project or Purchase Order, we charge a monthly fee based the services your company wants. That fee remains static for the duration of our contract.
The final price depends on what your company needs. You only pay for the AP automation services your company will use. And you’ll never have to worry about paying for user licenses. Unlike many competitors and the ERP software we interface with, NextProcess has never and will never charge based on how many people are using the software. Give access to as many of your employees and vendors as you want.
Price Over Time
There’s more influencing AP’s cost than how much you’re paying for the software, though. Processing an invoice costs money whether you use automation or not. A survey by APQC shows there’s a vast difference in how much different companies pay per invoice. “Bottom performers” are spending an average of $12.44 per invoice. Top performers, on the other hand, spend an average of $4.98.
According to APQC research, “Labor costs typically consume 62% of total AP costs.” Automation cuts down on labor costs and the need for manual intervention when processing invoices. So even though you’re paying a fee to process each invoice automatically, it often works out that you save significant amounts of money per invoice. In fact, many companies find that automation cuts costs so efficiently it quickly pays for itself.
Switching over to a new system always involves some cost. But choosing a SaaS company like NextProcess can make that transition easier and less expensive. You won’t be bogged down for months rolling out new software across your company. Instead, our cloud-based AP automation simplifies the implementation process. Also, the user-friendly interface makes learning the new system quick and painless.
Ready to learn more about exactly how much AP automation will cost your specific business? Contact us. Software demos are free and so is most information. We can also provide RFPs or ROI models for sales upon request.