How much does AP automation cost? That’s a great question.
But every company and organization is unique, so the (somewhat frustrating) answer is: it depends.
The best way to get a precise estimate of the cost is to book a call with us…
But, on average, we can process them for as little as $1 – $2 per invoice.
We can give you a much more precise cost estimate for AP automation tailored specifically for your company or organization in less than 15 minutes!
That said, we will break the costs down so you can get an idea of how much it would cost your company or organization to to automate purchasing, invoice processing, and payments.
In addition, it’s important to keep in mind that AP automation is not a cost. It’s an investment.
In the end, your investment in AP automation will make your AP department 500 times more efficient! This video shows you how:
So let’s break down the factors that go into how much AP automation costs.
We’ll start by examining recurring costs of AP automation. Then we will examine the one-time costs to automate your procure to pay process. Finally, we discuss why AP automation is an investment rather than a cost.
Table of contents
- Same Content in Video Format
- Recurring Costs
- One-Time Cost of AP Automation
- Total Cost of AP Automation
- AP Automation is an Investment, NOT A COST!
- Bottom Line – How Much Does AP Automation Cost?
Same Content in Video Format
We know that some people learn better from videos than from reading. So we created this video that has the same content as this article.
If you prefer to read more about how much AP automation costs, you can do so below the video.
Volume of Invoice Automation
The major factor impacting your recurring cost of AP automation is the number of invoices you process.
Broken down on a monthly basis, the best return on investment for AP automation starts around 250 invoices per month. Or 3,000 invoices per year.
The good news is that, generally speaking, our flat rate for automating an invoice is between $1 and $2. As your volume goes up, the price per invoice goes down.
The GREAT news is that this AP automation cost includes:
- Check request automation – digital check requests with built-in fraud protection.
- Digitized purchase requisitions – including automation of both requisitions and approvals.
- Automatic PO generation – Purchase orders are automatically generated out of purchase requisitions with built-in vendor PO acceptance automation.
- Automated verified invoice data capture – invoice data is captured with 99.9% accuracy!
- Smart AP robotic process automation technology – software that learns how you process invoices then auto-fills details like GL distributions, tax information, etc.
- Receiving automation – Automate receiving to facilitate 2-way or 3-way match.
- 2-way or 3-way matching of invoices – automatically match invoices to POs and/or receipts/packing slips.
- Digital invoice approval – managers love being able to see and approve invoices on any device from anywhere in the world!
- Budgeting insights – ability compare spend to budget in real time.
- Travel and expense automation – digitizes and automates the process of recording, tracking, approving, and paying for reimbursable expenses incurred by your employees.
With our cloud-based A/P One solution, cloud server and invoice storage space are also included.
As are unlimited users and approvers.
That’s a LOT of functionality for $1 to $2 per invoice!
Payment Automation Choices
The only other recurring cost of AP automation is the cost of your payment automation.
You can choose e-checks, ACH, wire transfers, or virtual credit card payments. The cheapest of these options are virtual credit cards. In fact, you can earn 1% back on every invoice you pay using VCCs!
From there, ACH, e-checks, and then wire transfers are the least expensive ways to pay invoices.
But manually cutting a check can add an extra 5-7 days for delivery and posting of the check. And it costs over $5 on average. Our ACH and e-check automated payment options cost a fraction of that.
We recommend paying as many invoices as possible with virtual credit cards. They are the safest form of payment and they are an electronic payment that earns your company cash. Why not make money by paying your invoices!?
For vendors who won’t accept virtual credit cards, use our very affordable ACH option as a backup form of payment. And automated, outsourced paper checks for vendors who will only accept old school payments. And use automated wire transfers for large invoice amounts.
Learn more about the benefits of automated epayments by watching this video:
One-Time Cost of AP Automation
In addition to the low cost-per-invoice to automate your AP there is also a one-time flat installation fee. This fee includes AP automation functionality configuration and setup as well as ERP or accounting system integration.
Let’s break those costs down.
AP Automation Functionality
The exact cost of your AP automation installation fee depends on how much of the available functionality you desire.
Our cloud-based A/P One solution base package including automated verified data capture and automated approvals has a flat implementation fee of under $7,000.
Each additional functional requirement adds $1,000 to $4,000 to the installation fee, depending on the functionality.
Generally speaking, the flat implementation cost to install, configure, and train to all 10 of the functional requirements is in the high $20k range.
ERP or Accounting System Integration
Your one time cost of AP automation will also vary based on your ERP or accounting system. We have over 20 years of experience integrating with Dynamics GP. But we have integrations for just about any accounting or ERP system.
The cost to integrate your ERP or accounting system to AP automation is purely in professional services. So depending on how much work it will take, the integration will cost as little as $1,000.
For more complex integrations the time-cost to build an integration can run as high as $10,000.
But whatever the case, you will always have the protection of a flat fee rather than a time and materials contract. We assume all the risk of completing a successful implementation, including integration with your accounting system.
We’d be happy to show you our transparent flat-fee pricing structure for your specific functional requirements and accounting system.
Total Cost of AP Automation
As we say, the best way to find out how much AP automation will cost your company is to request a demo to discuss your specific requirements.
We can show you a rough estimated cost for AP automation tailored to your organization’s requirements within 15 minutes or less.
We’ve done smaller and more basic AP automation solutions for one-time fees under $5,000 with recurring annual costs of under $7,000.
Of course, larger volumes of invoices and more functionality raises those costs.
But those costs are almost always less than the cost of a single AP specialist’s annual salary.
AP Automation is an Investment, NOT A COST!
So there is a cost to implementing AP automation.
But then, over time, your company will recoup those costs – and will keep saving money long after your AP automation solution has paid for itself.
First, that’s because, as noted, AP automation is an investment rather than a cost. For a small upfront investment in implementation and then $1 to $2 per invoice, your AP department will be incredibly efficient.
And then, many of our customers are able to reduce the size of their AP department through automation. Or process twice as many invoices without adding staff.
Your company will save money on every invoice you pay. And your AP department can even add to your company’s bottom line with virtual credit card rebates.
Check out our AP automation cost savings calculator to see how much money your organization could save with AP automation!
Bottom Line – How Much Does AP Automation Cost?
There is no simple answer to the question of how much AP automation costs. It depends on how many invoices your company processes and what your functional requirements are.
It can cost as little as a few thousand dollars or as much as $50,000 or more. But either way, most of that cost is a one-time investment. Recurring fees to automate invoice processing will be a fraction of that.
But what is clear is that whatever the cost, implementing AP automation is an investment.
Over time, the money you invest in AP automation will pay for itself – and then some. And in the meantime your AP staff will be freed to add value to your company in other ways.