Many accounts receivable departments feel that using an automation tool is an out of reach option, prohibited by cost. However, accounts receivable automation software has become even more affordable due to SaaS options. Many times it’s even more affordable than traditional options such as adding an additional team member.
Traditional invoices cost about $11.50 per invoice to prepare and send out to customers. Consider the cost of paper, stamps, envelopes and shipping them out. All of these paper costs tend to have very high hard costs. If you look at this as a whole over one year for a company that is processing about 1,000 invoices per month, it would cost that company $138,000 per year. By adding automation, these costs go down significantly. The average cost per invoice to process when using an automation tool, when considering the monthly cost of an automation tool, decreases down to $0.71. For a company that is processing 1,000 invoices per month, that amounts to just $8,250 a year.
As accounts receivable departments begin to feel overwhelmed by the tasks of the job, they might consider adding an additional team member. The average salary in the United States for a full-time Accounts Receivable Clerk is $34,770 (Glassdoor). However, the costs do not end there. Benefits are typically 20 percent of the employee’s salary, adding another $6,954. Taxes can cost around $2,590 for an accounts receivable clerk salary, however this can vary depending on your state. You’re now paying $44,314 annually for an additional accounts receivable employee to send emails, mail letters and print invoices. With these tasks automated by an accounts receivable software that costs around $100 a month, you can keep your current staff but add even more accounts. That’s a savings of $43,114.[/vc_column_text][vc_single_image image=”5878″ img_size=”full”]