Why automate your accounts payable process?
- Manual invoice processing is slow, expensive and prone to errors. Research has shown that it costs on average £15 and 10 days to process an invoice. Data entry alone can take the majority of accounts payable time and 20% of invoices are paid late, often incurring financial penalties.
Low productivity and inefficiency
- Slow, inefficient invoice processing is costly. Lost documents increase the risk of errors and can be very time consuming – resolving discrepancies, handling disputes and answering supplier queries – as well as damaging to supplier relations, resulting in slower procurement.
- Without proper control over the invoice process maintaining optimum cash flow is difficult - outstanding liabilities are unclear and correct forecasting can be severely hampered. It is also difficult to ensure efficiency unless you can easily analyse process performance.
- Retrieving and auditing invoice data is essential to ensure it has been captured correctly. Data must also be securely archived – costly with bulky paper documents - to meet regulatory demands and mitigate fraud.
‘ Improved supporting tools and processes, coupled with advanced validation algorithms, deliver straight through processing levels of 50% and above.’ Forrester Research, Inc., A Buyer’s Guide To Invoice-To-Pay Solutions, December 30, 2011
The benefits of automating invoice processing
- Automating invoice processing can help cut processing times, reduce late penalty payments and avoid costly invoice disputes. It can also help you to leverage early payment discounts.
Increased productivity and efficiency
- Manual data entry time is dramatically reduced and input accuracy improved - so you can focus more time on revenue generation or customer service. The availability of invoice documentation for query, dispute and audit can be improved and the number of lost invoices reduced.
- Reporting systems deliver clear invoice status allowing you to answer supplier queries first time. Process reports allow you to identify bottlenecks, areas for improvement and any changes in performance over time.
- Retrieval of documentation for auditing is quick and easy, while approval steps and ownership are readily identifiable. It can also be integrated into your retention and compliance policies.
Enhance the performance of your Invoice processing.