Is an Invoice Management System Right for Your Business?

If you were to ask 100 companies if they would like to reduce their invoice processing costs, there is a high probability that 99 of them would say “yes.” And the one that says no? They’ve probably started their invoice automation journey already — with a full invoice management system implemented and operable. For businesses that are still managing invoices manually, an invoice management system can provide considerable cost savings while bolstering efficiency to help your Accounts Payable department improve cash flow management and visibility.

Let’s face it, manual invoice processing is expensive and time-consuming. It’s a grim reality that other companies have been grappling with for a long time. Here’s what they’re saying:

What Other Companies Are Saying About Invoice Management Systems

The Institute of Financial Operations surveyed companies about their current approach to invoice management. Here’s what they had to say:

90%

of organizations still deal with paper invoices and transaction documents

 

80%

said that their volume of invoices increased or remained roughly the same over the past year

 

60%

reported that the bulk of their increase in invoices was paper-based

 

80%

confirmed that half or more of their invoices arrived in paper format

 

90%

of total invoice volume was paper-based for majority of businesses

 

60%

of companies required between 5 and 25 full-time employees for invoice entry and validation

 

70%

had a steady or increased number of errors during invoice entry and payment in the last 18 months

 

70%

of organizations said that PO-based invoice automation is important to a comprehensive automation project

 

60%

60 percent said that they were focusing on controlling their spend and ensuring that purchases were made with preferred suppliers

 

45%

were focusing on eliminating mismatches and exceptions that lead to blocked invoice payment

 

65%

noted the average time it takes to process an invoice increased over the past year

 

50%+

were able to capture “a significant amount” of early payment discounts with invoice processing automation

 

45%

used front-end document capture software

 

20%

used optical character recognition (OCR) software to replace manual ERP keying

 

10%

had full data extraction and ERP validation capabilities

 

The statistics illustrate an alarming trend. For most companies, invoice processing is still a largely manual process, but they are also spending more time thinking about their AP processes and how they can improve them with an invoice management system.

What You Can Do To Reduce Your Invoice Processing Costs

Reducing your invoice processing costs is easier said than done, which is why we have developed comprehensive solutions, including invoice validation software, to help companies overcome these challenges. Most of our customers achieve a full ROI within one year of implementation with a 75 percent reduction in invoice processing costs. With a robust invoice management system and invoice automation capabilities, you can avoid late payment fees and expedite invoice processing to capture a higher percentage of available discounts.

IntelliChief customers also benefit by:

  • Reducing AP cycle time by 80 percent
  • Preventing time-consuming manual data entry mistakes
  • Improving visibility into the Accounts Payable processes with intuitive, decision-enhancing reports

The best part? You can keep your specific processes in place. Strategic automation is all it takes to achieve these results. with our invoice management system.

To learn more, contact us today. Or, download our AP automation overview to see more of the cost-reduction advantages.