Here is a simple Frequently Asked Questions page to assist you regarding the transfer of ProcessFlows business activities to Konica Minolta Business Solutions (UK) Limited .
Calculating the Cost Per Invoice
A fair evaluation of cost per invoice should at least include the following:
- Full loaded costs of all headcount (Full, part-time or seasonal) involved directly in the AP process
- Costs of all associated software, IT infrastructure and other support costs relating to AP
- Accounts Payable teams can also incur additional or unnecessary costs through late payments, missed early payments or worst supplier terms, fast payment fees. If there are significant these should be included.
- Inefficient Purchase to Pay (P2P) and Account Payable operations can be a huge drain on other departments and approvers. Approvers need to Approver payment/ Receipt. Processes break down and queries from suppliers result in unnecessary burdens across the organisation. It is best practice to at least include the Approver’s time.
Benefits Of AP Automation Beyond A Lower Cost Per Invoice
It is important to note that many AP automation projects only focus on the possible direct cost savings that can be achieved rather the other important benefits that can be realised through AP Automation and are not reflected in the cost saving mode.
For example, smaller businesses processing less than 500 invoices a month, the value of and case for automating or outsourcing AP is less about the financial savings and more about the time that a person or team gets back to spend on growing or innovating their business not just managing it.
Other benefits missed by a simple cost benefit analysis include: