How to Build a Winning AP Automation Business Case (with Metrics that Matter)

You know the pain points when it comes to the accounts payable (AP) process: The time-consuming data entry. The delayed approvals. The stack of invoices waiting for someone to type, check, forward, follow up. You’ve seen how clunky the process can get, especially as volumes grow or vendors start asking about missing payments. 

What you also know is that there’s a better way: AP automation. 

But before automation becomes a line item in the budget, leadership needs a compelling reason to prioritize it.

Let's walk through the steps you should take to create an AP automation business case that's impossible to ignore, backed by metrics that matter to decision-makers.

Step 1: Tell Your Story 

Don't underestimate the power of a good story when asking to invest in technology, like AP automation solutions. Instead of jumping straight into technical details or return on investment (ROI) numbers, start by painting a clear picture of your current challenges.

Consider these questions when crafting your story:

• How long does it take, on average, to process a single invoice?
• Where do most delays occur?
• How much time does your team spend on low-value tasks, like data entry or chasing approvals?
• What happens when things go wrong (like duplicate payments, late fees, lost invoices, or unhappy vendors)?

Then, introduce how automation can solve these challenges, and how it can free your team to focus on more strategic work.

Step 2: Focus on Metrics that Speak Leadership's Language

Leadership focuses on outcomes and how they affect your company’s bottom line. To build a persuasive AP automation business case, you need metrics that show how investing in automation can lead to better cash flow, smoother operations, and reduced costs.  

Here are five key metrics to focus on:

1. Cost Per Invoice

Manually processing a single invoice generally costs anywhere from $2 to $10 per invoice. If you're working through hundreds or thousands of invoices each month, your bottom line can take a pretty hefty hit.

When trying to get leadership buy-in for AP automation, don’t just quote industry averages. Calculate your team's specific costs:

• Add up your team's hours spent on AP tasks
• Include technology and overhead costs
• Factor in time spent fixing errors
• Multiply the potential savings by your monthly invoice volume

This will give your leaders a clear view of how much your current process costs — and how AP automation can help lower these expenses.

2. Invoice Processing Time

Manual AP workflows can stretch processing times to days or even weeks, especially if you’re dealing with PO-based invoices or high volumes. Automation can significantly reduce these times, turning days into minutes and weeks into hours. 

This metric becomes even more powerful when you consider factors like:

• Early payment discount opportunities
• Stronger vendor relationships
• More predictable cash flow
• More time for other tasks and priorities

3. Exception Rate

Managing multiple exceptions and regularly mitigating errors can tie your team up in manual reviews.

Automation saves your team time (and hassle!) by reducing errors and ensuring invoices are processed accurately. Automation solutions, like Nimbello, also help you spot errors or inconsistencies before they become bottlenecks in your process.

Track how often your team finds themselves needing manual intervention. Share this information with your leaders, and then highlight how automation can solve these issues.

Consider key benefits of AP automation solutions, like:

• Automatic checking at entry
• Consistent rule application
• Automated three-way matching
• Smart data extraction

4. On-Time Payment Rate

Late payments can damage vendor relationships and lead to hefty late fees. Automating accounts payable creates consistency and reliability. Measure your current on-time payment performance, then show how automation could improve consistency and predictability by:

• Strengthening vendor relationships
• Capturing early-payment discounts
• Eliminating late fees

5. Audit and Compliance Readiness

Having a digital invoice system makes audits faster and less painful. If your records currently live in multiple places or paper files, automation can save the day.

AP automation solutions, like Nimbello, offer a searchable, centralized system that can:

• Create an easy-to-search digital database
• Reduce compliance risks
• Make tax season and audits easier
• Give instant access to payment history

Step 3: Don't Overlook the Human Benefits

Not every benefit fits neatly into a spreadsheet, and that’s okay! Leadership also cares about things like employee retention, vendor satisfaction, and long-term scalability. Don’t be afraid to include "soft benefits" when making the business case for automation, such as:

• Freeing up time for more strategic tasks, like forecasting or managing vendor relationships
• Reducing burnout and turnover from repetitive, manual work
• Improving collaboration between different teams, like finance, procurement, and operations
• Scaling efficiently, without needing to add (or reduce!) headcount

Paint a picture of what your team could do with the time and tedium saved by using automation — and how much happier they would be.

Step 4: Use Real-World Examples

Social proof reigns supreme, and nothing is better for an AP automation business case than seeing the results in action.

You can do this by:

• Reaching out to industry connections who've implemented similar solutions
• Referencing specific case studies with measurable results
• Sharing testimonials that address common concerns

By sharing real-world results, you can help your leadership see that the benefits of AP automation are both achievable and realistic.

Before Nimbello, we struggled with delays and inefficiencies, but now, the AP process is smoother, and the reduction in paper handling has been a game changer.

– Kyle Werner, Corporate Controller at Ellwood

Step 5: Address the Question of Cost Directly

It's inevitable: the "what will this cost?" question.

Once you've shown how inefficient and costly your current process is and demonstrated the impact automation can have, you can present the cost in the right context: as a return on investment.

Create an ROI snapshot that includes:

• Estimated annual savings from faster processing time
• Reduced expenses due to late fees, overtime, or duplicate payments
• Improved cash flow from faster approvals
• Typical payback period (many solutions recoup their cost in less than a year)
  
  

Step 6: Package Your AP Automation Business Case

With your metrics and story in place, it’s time to put everything together in a clear, visually appealing presentation. 

Include: 

• A summary highlighting key benefits
• Simple charts comparing current vs. future metrics
• A straightforward implementation timeline
• Answers to common questions

Remember, your pitch is about more than highlighting a problem and sharing information. You want to inspire confidence and show leadership that you’ve already thought a few steps ahead.

Let's Build Your Business Case Together

AP automation can help your team deliver meaningful results, without disrupting your workflows. At Nimbello, we're here to help your team go from “this is taking forever” to “we can’t believe we used to do it that way!"

If you’re ready to improve your processes with AP automation, we’re happy to help you build a case that gets the green light. Contact us to get started today!