Invoicing is an everyday reality for every business, but it shouldn’t be dragging down the bottom line or contributing to inefficiencies.
The primary way invoice management becomes costly to an organization is through paper-based invoice management processes. The average company managing a paper invoice process spends over $20 on each invoice, including the time, labour and costs associated with printing and storing that piece of paper. Multiply that figure by the number of invoices you process, and accounts payable suddenly becomes an extremely costly department.
When you’re facing stacks and stacks of paper, it can be difficult to consider making a change to paper-less invoicing. The benefits, however, are completely worth it. Adopting paperless, automated solutions allow businesses to free up labour and resources, and achieve better financial transparency. Here are five benefits you can realize through AP automation:
Cost Reduction – According to an Aberdeen Group, automating invoice processing dramatically reduces the average cost per invoice from about $23 to $3.41. A company processing 100 invoices a month could save almost $2,000 each month. Those savings quickly add up to over $20,000 in a year. Many larger organizations process much more than 100 invoices in a month and the savings could be exponentially greater.
Efficient audit process – Mandatory audits have the potential to derail even the most organized AP function. When the paper trail is locked away in filing cabinets, audits can greatly reduce day-to-day productivity as key team members are left sifting through paper documents. With an automated invoice system like Concur Invoice, everything needed can easily be recalled in minutes saving you time and money, and keeping teams focused on important daily operations.
Strategic cash flow – While AP automation allows you to pay invoices quicker, it’s really about paying invoices on a schedule that suits the organization. Automated systems give you the control to better manage cash flow. Businesses can more strategically capture early payment discounts or keep cash until it is required to pay.
Visibility into spend – Digital processes allow AP teams to have better visibility to organizational spend. Without the delay of scanning, printing, approving and filing, businesses have an instant top-down view into financial standing because invoices automatically enter the system and are captured.
Environmental Benefit – Digitizing the AP department also helps reduce paper waste. Many organizations are considering how to make offices and operational functions more environmentally responsible and paper reduction is a strong way to do so.
Kevin Craig is the Managing Director of Concur Canada.
SAMSUNG GALAXY S8 PLUS
The Samsung Galaxy S8 Plus is a beautifully crafted smartphone with nearly no bezel, curvaceous in design and reflects a…
How to: Connect to Exchange Online Using Multi-Factor Authentication
Using PowerShell to manage your Microsoft cloud services like Exchange Online and using multi-factor authentication (MFA) separately is awesome. Using…