# What is the ROI of invoice automation?
Invoice automation typically delivers 300-500% ROI within the first year through: (1) Labor Savings - reduce processing time from 10-15 minutes to 1-2 minutes per invoice, freeing staff for strategic work; (2) Cost Reduction - cut per-invoice processing cost from $15-25 to $3-5; (3) Early Payment Discounts - capture 2-3% discounts by processing invoices faster; (4) Avoided Late Fees - eliminate penalties from missed payment deadlines; (5) Error Reduction - prevent costly errors (overpayments, duplicate payments); (6) Fraud Prevention - reduce fraud losses; (7) Better Cash Flow - improved visibility enables better cash management. Example: Processing 500 invoices/month manually costs ~$8,000/month ($15/invoice). Automated costs ~$2,000/month ($4/invoice), saving $72,000/year. If automation software costs $18,000/year, ROI is 300%. Additional benefits include improved supplier relationships, faster month-end close, and better financial data.
## Key Takeaways
- Invoice automation typically delivers 300-500% ROI within the first year through: (1) Labor Savings - reduce processing time from 10-15 minutes to 1-2 minutes per invoice, freeing staff for strategic work; (2) Cost Reduction - cut per-invoice processing cost from $15-25 to $3-5; (3) Early Payment Discounts - capture 2-3% discounts by processing invoices faster; (4) Avoided Late Fees - eliminate penalties from missed payment deadlines; (5) Error Reduction - prevent costly errors (overpayments, duplicate payments); (6) Fraud Prevention - reduce fraud losses; (7) Better Cash Flow - improved visibility enables better cash management.
- Example: Processing 500 invoices/month manually costs ~$8,000/month ($15/invoice).
- Automated costs ~$2,000/month ($4/invoice), saving $72,000/year.
## Related Topics
- invoice automation ROI
- AP automation ROI
- invoice processing savings
- automation benefits