There are a lot of variables to consider in order to accurately calculate the cost of your AP processes. Are you considering all of them? If not, here’s an easier way to calculate those costs.
You may consider the dollars spent on invoice processing and payment simply as the cost of doing business. But what is that cost? And can you reduce it without sacrificing the integrity of your business? These are important questions because, in today’s global economy, CFOs and finance executives at all levels are being tasked with creating greater efficiencies and reducing costs while still maintaining accuracy, accountability, and compliance. This has put every department and its processes under a microscope. This is especially true for functions like accounts payable that have long been regarded as cost centers rather than strategic partners furthering the growth and profitability of the company.
But in order to decide where savings can be made in terms of time and capital, finance professionals need to know what those operational areas are actually costing. There are a lot of variables to consider in order to accurately calculate the cost of your AP processes: traditional estimates include the number of processors, managers, and supervisors; their individual salaries; number of average monthly invoices; and average invoice amount; but these are just the tip of the iceberg.
Because there are so many factors to take into account, it has been difficult to accurately calculate as a total cost. That’s why Corcentric has developed their interactive AP calculator; to help you begin to calculate how much it’s costing you to process invoices with easy-to-follow steps. After you’ve completed these steps, simply click on “submit” and you’ll immediately discover your “tip of the iceberg” when it comes to your current annual AP cost.
Download the AP calculator to see how much your processes may be costing you.