Accounts payable · Cost
Where the cost saving in bills automation actually comes from
Not from replacing your accounts payable person. From changing what the cost of processing an invoice scales with.
Published · Updated
Accounts payable · Cost
Not from replacing your accounts payable person. From changing what the cost of processing an invoice scales with.
Published · Updated
Bills automation is usually pitched as a way to avoid hiring. That framing is unhelpful, and for most businesses it is not what happens. The saving is real, but it comes from somewhere else.
The cost of entering an invoice has almost nothing to do with the size of the invoice. A $200 bill with thirty lines takes far longer to process than a $40,000 bill with one. As a business grows, the number of lines grows faster than anything else on the invoice, which is why accounts payable effort grows faster than turnover.
When the lines are extracted rather than typed, a thirty-line bill takes about as long to handle as a one-line bill: you are reviewing a document either way. Effort stops tracking line count and starts tracking the number of bills that need a decision — which is a much smaller number.
One person can handle a batch of bills, with their line detail, in a single pass rather than over a morning. In most businesses that does not mean fewer people. It means the same person doing the reconciliations, the supplier queries and the month-end work that was previously getting squeezed.
Numbers we deliberately do not publish
Of everything a finance team does, accounts payable is high-volume, rule-driven and slow to optimise. That is why it goes first.
Scan history, PDF preview, supplier mapping and line splitting — the parts people actually use every week.
Manual entry of a dozen multi-line bills is slow enough to be worth measuring. Here is how to work out what yours costs.
Start on the free plan, connect Xero or Reckon, and process your first bills today.