But this implementation hasn’t come without challenges. The main issue? Money. When a CFO looks at potential expenditures related to adopting the IT vendor invoice automation, they need to know how each function will impact their bottom line. And it’s not just the immediate impact on cash flow. There are long-term risks and rewards to consider. Without the right profile, even the most promising project won’t get funding, which leads to a central question:
Is automating IT Vendor Invoice processes worth the effort? What is the actual ROI of IT Vendor Invoice Automation?
The ROI of IT Vendor Invoice automation can be a bit more complex to calculate. Why? To startup, it impacts so many different aspects of your business. For example, what is the value of a less frustrating and manual invoice extraction process? Is it worth automating, and if so, what is the ROI?
Savings from fully automating IT invoicing are estimated at 30-80%. With fully automated IT invoicing, you can use features like the following to reduce costs and increase cash flow.
- Invoice templates – eliminate repeated invoice creation from scratch
- Email and text invoice copies – save postage and processing costs and reduce delivery time
- Links on invoices – speed collections with online payment options
- Reminder emails and text messages – reduce collection calls and increase cash flow
Let’s start by considering the financial benefits of IT Vendor Invoice automation. Then, we will take a look at the non-financial benefits of switching to IT Vendor Invoice automation.
The Financial ROI of IT Vendor Invoice Automation
- Cost is reduced from $14-$17 per invoice (when done manually) to $3 (when automated)
- Time investment is lower: the typical cycle cuts down from 14 days to 3 days with automation
Lower costs, fewer late fees, and more early payment discounts are the norm – not the exception. That’s the IT Vendor Invoice Automation ROI realized.
The Non-Financial ROI of IT Vendor Invoice Automation
Getting executive buy-in for IT Vendor Invoice automation is critical, yet most people only focus on the financial benefits. Which makes sense; it is easier to convince higher-ups that IT Vendor Invoice automation is beneficial when you can say, “This will save our company $X per year.”
But, don’t overlook the non-financial benefits. These benefits might not have an easy to calculate cash value, but they can still help the company grow and increase employee happiness long term.
- More Control: IT Vendor Invoice automation creates a streamlined, controlled process that leaves less room for manual errors and mistakes. The result is a tighter, well-controlled IT Vendor Invoice process with fewer errors.
- Streamline Auditing: Do you dread the audit process? IT Vendor Invoice automation makes it easier to stay organized and pull reports so the AP team can get audits done faster, with better accuracy and less frustration.
- Improve Business Relationships: IT Vendor Invoice automation can also help you improve relationships with vendors by making communication easier. For example, all the vendor communications are kept in one location, making it easier to see and respond to questions and requests. In addition, anyone with access can see past conversations, which keeps everyone in the loop.
How does an IT vendor invoice automation solution help SaaS enterprises?
An automated IT vendor invoice solution, like Aavenir Invoiceflow, lets you
- Identify, categorize, ingest data required for account payable workflow from any invoice formats
- Detect various parts of invoice through a regular expression, machine learning extraction models, and unique parsing strategies
- Automatically match a combination of the invoice, purchase orders, goods/services receipt, quality check, vendor contract
- Execute on-time payments on ServiceNow powered flexible workflow platform with rules-driven conditional approvals,
- Complete audit logs and alerts with pre-built analytics reports and insightful dashboards
- Collect and share invoice data to multiple endpoints including existing accounting and procurement systems built with SAP, EMC, and any other CRM or ERP solutions
Watch this video case study to learn how T. D. Williamson Gains Greater IT vendor Invoice Visibility with Aavenir Invoiceflow.
We get it: automating isn’t an instant decision. Organizations need to evaluate (and often maintain) the long-standing IT Vendor Invoice processes. Aavenir’s solutions let you keep your current ways of processing but automate them for increased efficiency.
Companies lose up to 5% of revenue or face critical IT issues due to delayed payments, duplicate invoices, frauds, and manual processes.
Attend this webinar to learn how to use AI to automate 90% of manual IT vendor invoice processes and manage approval workflows on Servicenow.