Is your company still using manual invoice processing to manage the cash flow? Are you aware of the fact that manual invoice processing might be bogging down your business? It is not just your money, but your time and resources are also at stake if you are stuck in the manual processing loop.
You may not be realizing it, but your accounts payable processes are way expensive than you think. And if you have not addressed it yet then it’s high time to start acting now! Because suboptimal invoice processing is a lost cause.
Processing Invoices in a semi-automated or manual environment is costly in the long run. The time your finance team is spending on single invoice processing manually is four times as much as your competitor who uses an automated invoice processing solution. So, isn’t it better to invest in your account payable just once and save yourself from the hassle of invoice processing?
In this article, we will be sharing the top five hidden costs incurred in manual processing that you are probably unaware of.
77% of invoices received by companies are in the manual format as PDF’s, hard copies, faxes, or emails. In a perfect scenario, date, price, quantity, seller, and buyer, etc will find their way in the account payable stack.
So, the manual invoice processing marathon will begin, starting from document preparation, routing, exception handling, data entry, indexing, approval, and filing. Even if the invoice is all done and complete, still this process is quite lengthy and tedious. When a process has a manual intervention, the chances of errors, decentralized data, and gazillions other pitfalls that may occur. This was a perfect world scenario. However, in our not-so-perfect world, the majority of invoices are not complete, have exceptions and errors, get sent to the wrong person, or are lost in the process.
Improper invoices can cause hindrance in the process. And to complete this process the back office needs to locate the missing data first. So, this already lengthy process is further elongated and employees are compelled to spend more time on this.
A manual invoice processing system where all the invoice handling is done manually can cascade into unnecessary and hidden costs from the following primary sources
The real task in improving accounts payable is to identify the hidden costs of the manual account payable process and eliminating them. The top five hidden costs that can pull down your business are:
Cognitive Invoice is the best-bet for businesses looking for an optimal and cost-effective solution. All the lengthy manual invoice processing steps can be put to an end with the introduction of the Cognitive invoice in your account payable system. Switching to automatic invoice processing, your accounting department can easily save the time required to process an invoice by up to 70%. So, your company will be able to take benefits from early discounts an on-time payments.
All of the hassles of manual invoice processing will make you go back to the barter system. You can save yourself the costs of manual processing and cut down the frustration in the process by using the Cognitive invoice. As per the reports of APQC, automatic invoice processing can optimize business by 25%. Plus, you can save the pre-processing cost as well.
Some additional benefits of using Cognitive Invoice are:
Now, knowing the actual and hidden costs in old school invoicing is enough to change to automatic invoice processing software. If you want to tap into the new world of automation, slice errors, valuing-draining stress, and wasted time for manual keying and processing of data then Cognitive Invoice is the best solution for you.
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