The Hidden Costs of Paying Your Invoices
Do you still process your invoices by hand? If you do, you’re not alone, but all indications are that soon manual invoice processing will be a thing of the past. So…if you’re not looking at alternatives, maybe it’s time to start. Our white paper can help you.
What many companies fail to realize is just how costly manual invoice processing can be. And, we’re not just talking about the dollars you send out as payment to your creditors. We’re talking about the (mostly hidden) costs of sending those dollars out.
It can be hard to ferret them out these less than obvious costs, so let’s start poking around your manual processes and see what we can find…
- You have a computer-based accounting package, so you feel like you’re not entirely relying on manual processing, but…
- Each invoice may be handled multiple times, even before an approval decision is made and it’s entered into your system.
- Each time an invoice is handled, labor costs increase and you run the risk of missing a prompt payment discount.
- If your invoice processing doesn’t start until the invoice reaches the A/P department, you’ve already wasted time, and your costs have gone up.
- Your average cost of manual invoice processing can be as much as 20 times higher than your competitor who uses automation to process invoices.
Got your attention when we talked about your competitor having a better way of doing things, didn’t we? So, let’s see why his way is better…
- Your competitor starts the invoice processing at the point of entry, not when it gets to the A/P department. Automation lets him do this.
- The invoices are automatically opened. No pre-sorting is required.
- A single operator drops the contents of the opened mail onto a conveyor for immediate imaging.
- Documents are captured and classified, the automatically routed to the correct person or department
- And, by the way, the same is done with electronic documents
What takes your company days and multiple people to do has been done by one person in a matter of minutes.
What the Surveys Show
- More than 400 AP departments were surveyed by The Institute of Management & Administration (IOMA). They found that companies who automated data capture were processing 25-60 percent more invoices with the same level of AP staffing as those who were relying on manual data entry.
- Use of automated invoice processing has been proven to easily boost efficiency by 25-60%.
- If you can reduce you’re A/P operational cost by 5%, it has the same bottom-line effect as turning your A/P department into a sales department who increase sales by 30%.
Keeping Up with Technology Keeps Your Company Strong
Business practices vary from company to company, but one thing is certain – those that keep up tend to keep on. So, do yourself, your company and your employees a favor…check out automated invoice processing. You’ll find there are many ways to accomplish A/P efficiencies, but they all have these things in common:
- Faster invoice turn-around
- Reduced labor and overhead costs
- Greater efficiency in the overall A/P process
- Workers able to focus on important business tasks
Contact us for more information.