Quick questions for the payments department: From arrival to categorization to payment, how long does it take you to process an invoice? How much does it cost, and how many steps are involved? If you answered too long, too much, and too many, you may be suffering from unnecessary accounts payable pain.
If each invoice you receive means you will be chasing down the procurement people, digging up purchase orders, waiting days for approval, and stressing over getting everything paid out in thirty days, your organization, like many others, could be falling behind.
- 36% of organizations see difficulty finding or managing paper-based documents as a leading market pressure.
- 35% see the same market pressure stemming from their inability to reconcile accounts/payments in a timely manner
- 35% see the same market pressure but in the inability to handle exceptions in a timely manner
The problem starts with the paper, and is exacerbated by the processing. This hinders transparency, causes frustration to buyers and suppliers, and could harm relationships with strategic partners.
So, if you’re like these organizations that find stress in payments, pain in processing, and worry in aligning your payables department with the financial strategy, you need to find peace.
How do you find peace in payables, you ask? It all starts with automation.
If you can shorten the time taken from receiving an invoice to processing to paying, you can not only take advantage of any discounts, you can also enhance relationships with suppliers. How much time? How much money? According to another Aberdeen study, best-in-class companies—companies in the top 20% based on performance—were able to accomplish some impressive results:
- Invoice Processing Time: Best-in-Class averaged 3.7 days to process an invoice, compared to 8.8 industry average and 14.3 for laggards.
- Invoice Processing Cost: Best-in-class paid $4.00 to process an invoice, compared to $9.60 for average companies and $23.3 for laggards.
- Early Payment Capture Rate: Best in class were able to capture 65.8% of discounts available, compared to 42.7% average and an astoundingly low 8.9% for laggards.
Automation is the first step to visibility and in turn, strategic operation. By capturing discounts, allowing yourself more time, and spending less money, your organization will be able to capture more growth opportunities.
So, if you’re looking to help become strategically significant in your organization and reduce the pain in invoice processing, it all starts with automation. What’s the easiest way to promote automation? An invoice processing software that can reduce the time spent while enhancing visibility into the spending of your organization.
As a proud provider of Concur Invoice Management we have helped AP departments to save time and money by automating their invoice processing, solidifying their strategic role within the organization.
To take the visibility and savings one step further, we have recently introduced Brittenford InvoiceConnect to enhance the effectiveness of Concur Invoice by securely synchronizing Concur Invoice with either Microsoft Dynamics GP or Intacct Cloud Financial Management.
Learn more about our products, services, and connectors through the resources below.
- Concur Invoice
- InvoiceConnect for Microsoft Dynamics GP
- InvoiceConnect for Intacct
- Webcast: Improving Efficiency by Automation of Invoicing
Be sure to contact us to learn more.