Cloud technologies are bringing world-class software solutions to small and midsize companies around the world – and they are paving the way for greater efficiency, visibility, and scalability. Take AP automation, for example. According to AMI Partners, amongst firms that have automated invoice processing, 82% are already using cloud solutions.
There’s no denying that automating invoice processing can deliver huge ROI. A typical small to midsize business processes 450 invoices a month with a duplication rate of 1.29%, and labor costs typically make up 62% of total accounts payable (AP) costs. Automation can largely eliminate these labor costs. For example, with the right solution:
- Invoice line items are matched with data in purchase orders using intelligent automation – addressing a huge pain point for AP departments. They not only save time, but also reduce the risk of human errors that require even more effort to fix after the fact.
- Rather than worrying about whether or not the right people have approved an invoice, you know they have because policies are built-in – and documents are routed – electronically.
- You are able to better keep track of invoices – which solves a common problem. The software tracks when invoices have been received as they come in, saving people the time and effort needed to track them down.
- You can reduce duplicate invoices – and reduce reliance on the laborious process of correcting these errors because everyone can see, in one place, when invoices have been paid.
- When suppliers call regarding payment status, answers are just a click away, saving finance time and improving supplier relationships.
- You can proactively manage payments to take advantage of supplier discounts by paying early – and capture savings that go right to your bottom line.
As noted by AMI Partners, companies implementing such invoice management solutions see significant time and cost savings that go right to the bottom line. Among the companies they surveyed, the average accounting and finance teams realized a 16% time savings, which equals 40 hours saved per week for a typical team of five, and nearly $34,000 cost savings annually.
Want to learn more? Take a moment to see the Concur Invoice solution in action by walking through the self-guided demo. You’ll see what happens when an employee purchases office furniture and the vendor invoice needs to be captured, processed, and paid.
How does it compare to your invoice handling process?