More often than not, the invoice processing costs of a single supplier invoice is dictated by a variety of manual clerical duties performed by skilled accounting employees: opening incoming mail, sorting invoices into specific batches, hunting down managers for coding and approval, and entering invoice data manually into the system for payment processing. That’s a lot of work for just one invoice.
Trade associations like The Accounts Payable Network have noted that the average cost to process a single invoice is approximately $15, while companies with more complex AP processes have seen their costs peak at almost $40 per invoice. Having said that, organizations that have implemented some kind of accounts payable process improvement—namely an AP automation system—have realized a significant savings of 60-80% over manual processing with average per invoice costs lowered to $5 or less per invoice.
How Accurate is Your AP Data Entry?
We don’t want to point fingers here but, we have to ask: are all your accounts payable employees equally productive, detail-oriented, and meticulous with their data entry? Beanworks has worked with hundreds of organizations, large and small, so we know that variances in inputted data can be caused by many different factors. Incorrectly coded line items, manual key-in errors, employee bottlenecks—it happens to the best of us.
We also know that the time it takes to correct these mistakes can cost your company many times more than what it actually costs to process a single invoice correctly. This is one of the main reasons why organizations turn to accounts payable automation solutions.
AP automation software enables controllers to put rules in place to correctly process invoices while simultaneously flagging those invoices with issues. Flagged invoices can then be directed back to them for resolution, and real-time reports can be generated to flag all variances and processing issues.
How Quickly Can You Match Purchase Orders To Invoices?
Manually matching a PO to an invoice takes time, and this time varies depending on the people tasked with the job. As we all know, some people are just faster and more precise than others. Having an AP automation system in place means you can implement processing rules to auto-match invoices against your purchase orders, receivers, or any other criteria that you set. For example, with Beanworks you can follow up your invoice auto-matching rules with an additional rule that automatically codes your invoice. This eliminates the need for additional manual data entry and human error.
From start to finish, an accounts payable solution is able to capture, route, code, request approval, and ensure payments get sent to the right supplier in a timely manner. The risk of errors, fraud, and late payments are mitigated and the cost to process a single invoice is significantly reduced. Learn how Beanworks can help you reduce your invoice processing costs quickly and painlessly.