One of the most redundant tasks in any accounting department is paying invoices. Obviously the business won't function very long without paying their bills, but there has got to be a better way to get the right amounts of money to the right people.
This is where AP Automation becomes crucial.
It is estimated by benchmark studies that the cost to process an invoice and/or make a vendor payment can be as high as $26/invoice.
This is obviously on the high end of the spectrum, since at $26/invoice most businesses wouldn't be able to afford to pay their accounting departments. But realistically, some benchmark studies have placed the average cost anywhere between $4 and $14 per invoice. Why the variance?
A lot of the determining factors have to do with time. The best accounting departments in the country have a processing time of approximately three days per invoice, whereas the average is double that time - 6 days spent in processing, in the average accounting department.
It's obvious to see, even from a non-accounting standpoint, how doubling the time to pay a vendor could seriously hinder the speed at which production can occur. This also may threaten the ability to receive discounts from certain vendors, etc.
With proper automation and storage, however, cost-per-invoice drops drastically. Fully automated, top-performing AP departments are able to process 3,339 PO invoices per AP staffer per month. This is an astounding number of invoices processed!
The only way to get your company to this level is to automate your accounts payable division properly - enhanced routing saves time on everyone's parts during amount-based, vendor-based, or time-sensitive approvals.
Strong digital automation also means that there aren't any slowdowns when a crucial member of the team is out of the office - even the CEO can approve large payments from a mobile device from anywhere in the world.