One common misconception with accounts receivable software is that it’s costly and will not realize ROI. But, most companies only focus on the direct costs of invoicing (printing, postage, etc) and do not understand the true cost of preparing invoices and collecting outstanding receivables. Working at VersaPay, I’ve seen customers on average realize ROI in less than 2 months with an AR automation platform. So what costs are businesses overlooking when calculating ROI? When preparing invoices, managing customer accounts, and collecting payment, there are many costs to consider. Most businesses are aware of their direct costs, but unaware of indirect and hidden costs eating up their bottom-line. Do you know the true cost of your invoicing? Take a look below. There may be some costs that surprise you: According to analysts, 90% of manual invoice processing costs stems from labor. By streamlining your process with AR automation, you are not only eliminating direct costs by presenting invoices online, but many of the indirect and hidden ones that sneak up on your cash flow. On average, according to a 2016 APQC report, the cost to prepare an invoice can be as high as $11.50 or more per invoice. For a company producing 1000 invoices a month, that is $138,000 per year. With AR automation, you can bring the cost closer to the best level (Top – $0.71 per invoice). That’s only $8,520 per year – 17x less costly. As you can see, automating your AR process will significantly reduce costs, but the ROI doesn’t stop there – it makes it easier for customers to do business with you. This may not be considered in calculating ROI but by making it easy for customers to view, dispute and pay invoices, they can pay you faster. For example, consider our customer story of Metroland Media. In the first couple of minutes of launching their invoicing and payment portal, a customer paid over $17,000 of outstanding receivables. By moving their AR process online, Metroland removed the friction caused by delays of receiving invoices (mail /resending copies of invoices) and payment (sending a cheque/calling in with credit card). The notion that accounts receivable automation is expensive and doesn’t deliver true ROI is a myth. As you can see, there are significant costs associated with the traditional order-to-cash cycle that dig into your profits. Why continue to waste time and money, when you can streamline for less than the opportunity cost of keeping your manual process? Lisa Soares, Digital Marketing Manager, VersaPay Lisa Soares joined VersaPay in 2015 and is responsible for delivering the company’s brand and marketing strategy on VersaPay digital channels . Lisa was formerly a Digital Marketing Manager at Sandvine Incorporated, a Network Policy Control for Communication Service Providers (CSPs) and was instrumental in building their brand personality and digital presence on social media and other online channels. Lisa holds a BBA from Wilfrid Laurier University with a specialization in Brand Communications.