The cost to manually process invoices is high. For most organizations it ranges somewhere between $10 and $20 each. In a recent study performed by IBM’s Sterling Commerce they found that manufacturing companies were paying as much as $30 per invoice. Since even small-to-medium sized organizations often receive hundreds of invoices per month simple math shows how costly invoice processing is. But what can be done to minimize AP expenses?
According to research by PayStream Advisors, businesses surveyed reported that 77% of invoices received are paper. That’s a large number especially considering that manual invoice processing relies on multiple ‘human touch points’ before payment approval. These ‘human touch points’ include: document preparation, scanning, PO matching, approval for non-PO images, routing, data entry, indexing and filing. All of these processes are tedious, time consuming, and carry an increased potential for error.