Where are your invoices in process?
Visibility is a major concern for Accounts Payable departments. Lack of visibility begins with the invoice process. Invoices are sent to different offices, are manually forwarded, and entered into an ERP system. These invoices are almost impossible to track until they reach the ERP system, leaving little to no visibility on the front end.
Invoices can sit on desks for days or weeks, resulting in process delays and inefficiencies. Capturing your invoices as they enter your process provides major benefits and can be achieved with AP automation and pre-processing services.
What is your average cost to process an invoice?
Is your Accounts Payable process considered to be best-in-class? Before you can determine your efficiency, you must first identify your average cost to process an invoice.
Best-in-class AP invoicing generally costs around $3.34. Unfortunately, most organizations are closer to an average of $7.00 per invoice. Paper invoices and manual processes tend to impede efficiency, and could be improved with the proper document conversion and workflow automation solutions. In addition to decreased labor costs and increased savings, AP automation helps decrease your risk of penalties.
How quickly can you identify accrued liabilities?
Accrued liabilities can cause havoc for AP departments. Come month, quarter, or year end, your AP staff is most likely running around to identify all of the expenses that have not been paid or logged. This results in a labor intensive, costly, and frustrating process. Fortunately, AP automation can help alleviate the issues associated with accrued liability processes.
Want to know how we can help you address these questions? Chat with one of our Consultants today.