One of the biggest dangers for any growing business is that it focuses too much on short term, tactical decisions when it really should be focusing on long-term strategic growth. Often, it is not the fault of the finance team, who try as they might, are forced into operating reactively due to manual processes and errors that they spend hours trying to fix.
Reactive, Inaccurate, and Slow is No Way to Operate a Business
An APQC Study looked into the average time spent on processes in the finance department and found that the average organization spends 49% of its time on transaction processing. That’s two and a half days per work week just making sure the bills are paid ant the lights stay on. This is a reactive-at-best, wasteful-at-worst mentality that is crippling the growth of an organization.
Worse yet, with all this time being spent on transaction processing, much of it is not accurate, as a Concur study found that small and midsized businesses could be throwing away as much as $12,000 per month paying duplicate invoices.
“According to Concur Invoice data, a typical SMB* processes approximately 450 invoices in a busy month, and experiences an invoice duplication rate of 1.29 percent, or about six duplicate invoices monthly.
The average value of a duplicate invoice received is $2,034 – for a total potential outlay of $12,000 per month, if each duplicate invoice were to be paid in error.”
Stop Duplication, Stop Manual Processes, and Start Thinking Strategically
Duplicate invoice payment presents a huge danger on organizations. When a duplicate payment to a supplier goes unnoticed, it’s akin to lighting stacks of money on fire. Even if you do notice a duplicate payment to a supplier, the pursuant process needed to get the money back takes time.
“Duplicate invoicing is a big problem in the SMB market, likely costing businesses not just in terms of overpayment but in time spent to rectify the overpayment,” said Christal Bemont, SVP & GM (SMB), Concur.
By automating the invoice management and payment with smarter invoice solutions, you can have any duplicate payment flagged before the payment is made, allowing you to rest easier knowing that you’re not throwing away $12,000 in duplicate payments.
An ideal supplier invoice automation system tracks and matches invoice details to avoid duplication, as well as allowing customers to configure alerts or automatically halt processing when they identify duplicate invoices. With all of this complete, your team will be able to refocus its efforts on the future rather than the present or past, and you can watch your business grow.
Learn More: Improving AP—Accounting Today/APQC Webinar
On March 30, 2017, Accounting Today will be presenting a webcast on how organizations can improve their accounts payable process, achieving high levels of labor productivity and enhancing finance’s role as a strategic partner within the organization. Featuring presenters from Accounting Today and APQC, this webcast is sponsored by Concur. Register now.
Take AP to Another Level: InvoiceConnect from Wipfli/Brittenford
Automating the Accounts Payable process is only the first step in focusing your business on the future. However, there is an even higher level that you can achieve—complete integration.
InvoiceConnect from Wipfli/Brittenford is designed to connect Concur Invoice with Microsoft Dynamics (GP, AX, or SL) or Intacct. InvoiceConnect connects AP and finance through a secure, fully automated integration that eliminates the time consuming download and manipulation process built around your workflows. Learn more about these connectors:
- InvoiceConnect for Dynamics GP
- InvoiceConnect for Intacct
- InvoiceConnect for Dynamics AX
- InvoiceConnect for Dynamics SL