Ask 100 companies if they’d like to reduce their Accounts Payable processing costs, and 99 would likely say yes.
(And the one that says no? They’ve probably automated their AP workflows, and have already brought the costs down to a more reasonable level.)
The reality? Manual invoice processing is expensive. It’s a time-consuming experience, and highly inefficient.
What Other Companies are Saying About Accounts Payable Automation
Here’s what The Institute of Financial Operations found when they asked companies about their current approach to AP:
- 9 out of 10 organizations still deal with paper invoices and transaction documents.
- 80 percent said that their volume of invoices increased or remained roughly the same over the past year.
- 60 percent reported that the bulk of their increase was paper-based.
- 80 percent confirmed that half or more of their invoices arrived in paper format. (A majority said that paper made up more than 90 percent of their total invoice volume.)
- 60 percent 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.
- 7 out of 10 organizations said that purchase order-based AP automation is important to a comprehensive automation project.
- 60 percent said that they were focusing on controlling their spend and ensuring that their purchases are made with preferred suppliers.
- 45 percent said that they were focusing on eliminating mismatches and exceptions that lead to blocked invoice payment.
- 65 percent noted the average time it takes to process an invoice increased over the past year.
- Just over half of the companies were able to capture “a significant amount” of early payment discounts
- 45 percent of companies used front-end document capture software, but only 20 percent used optical character recognition software to replace manual ERP keying
- Only 10 percent of respondents had full data extraction and ERP validation capabilities
If you made it through all those statistics, congratulations: it’s a lot of information to absorb. But it’s important information – and it shows that companies are spending more time thinking about their Accounts Payable expenses (and ways to reduce them.)
What You Can Do To Reduce Your Accounts Payable Costs
At IntelliChief, we understand that reducing your AP costs can be easier said than done. But, we’ve developed comprehensive solutions – including an electronic invoice validation program – that are well worth the investment. Most of our customers achieve a full ROI within one year of implementation, with a 75 percent reduction in invoice processing costs. They can completely avoid late payment fees by getting invoices out the door faster, in turn capturing a higher percentage of available discounts.
And when it comes to non-financial benefits? Our customers have reduced their AP cycle time by 80 percent, prevented the time-consuming mistakes that occur when manually entering invoice data into their ERPs, and gained more visibility into their Accounts Payable processes through 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.