The average cost to process one manual invoice is $15 – Aberdeen Group
Nearly 62% of invoice processing costs are made up of staff labour – APQC
The cost to locate a lost document can reach $120, and the cost to replace it, as much as $220 – AIIM
80% of inbound invoices are paper. – Aberdeen Group
More than 50% of vendor discount opportunities are missed. – Aberdeen Group
Most organizations don’t realize the costs associated with paper-based invoice processing. There are many tedious, manual, time consuming tasks including opening and sorting mail, date stamping each invoice, writing general ledger codes on each invoice, hand keying invoice information into the accounting system, tracking down approvers, matching invoices with the PO and receiving documents, dealing with discrepancies and exceptions, the list goes on.
PayStream Advisors recommend tracking these 7 key performance indicators to help determine where improvement is needed:
- Number of Invoices Processed Per Day Per Operator
- Average Total Cost to Process an Invoice (By Invoice Time)
- Exception Invoices as a Percentage of Total Invoices
- Average Time to Approve an Invoice from Receipt to Payment
- Discounts Captured as a Percentage of Discounts Offered
- Erroneous Payments as a Percentage of Total Payments
- Electronic Invoices as a Percentage of Total Invoices
Knowing these key metrics can help build a case for automating some or all of the manual tasks. Once you are aware of which processes are costing the most time and money, you can implement a solution to make these processes more efficient.
When you’re ready to discuss automation give us a call for a free consultation. We’ll ask about your current process, any areas you’d like to improve and give our advice on a solution to improve your process!