Is your Accounts Payable process prone to errors, slow, and costly?
Is your company buried under the stress of dealing with invoices? Invoice processing is a monotonous, laborious, and error-prone, unavoidable task. The accounting department relies on manual, paper-based processes that are boring and inefficient.
There is not enough time in a day to process invoices with a 90% chance of errors. The AP process is a revenue generator despite the companies neglecting its importance. The efficient AP processes ensure your company receives payments timely while freeing up the necessary cash.
“A penny saved is a penny earned” is an ancient saying implying that cutting costs play a significant role in scaling your businesses. The potential growth of any company is compromised because of the inefficient AP system and conventional invoice processing methods. Automating your invoice processing leads to reduced expenses, efficient processing, eliminating errors, and most significantly, relieving your employees of the hectic work schedule.
So what is the cost of processing an invoice?
Processing the invoice manually consists of entering data, proofreading the information, rectifying it, and finally processing the invoice. Later, invoices are validated, approved, and then sent to the vendors or suppliers for payments with a high probability of delay in payments. At last, the payments are received, and the invoice is archived. An average clerk from the AP department can process five invoices within an hour.
Take a second to analyze how much time is wasted on processing the invoices in your business while making a report of hidden costs that increase the overall expense ratio. Including all the processes above, the cost for processing an invoice on average is $15.80.
Despite the size of your company and the number of invoices you process, we are all sailing in the same boat. Multiple incoming documents with different types of formats from different vendors require many AP clerks to process those invoices.
Since the advent of technology, your company has needed an efficient processing system that is reliable and productive. In the previous decade, invoice processing automation was expensive; however, not integrating automated invoice processing is more expensive today. Recent research by EY concluded that more than 41% of the companies have accepted the fact that automation is critical with passing times for businesses to stay progressive.
Check the following to generate a more specific estimation of your own manual invoicing costs:
- Total processing time for invoices (including time in the post)
- Time spent evaluating invoices in total
- Total time spent locating and rectifying data input errors, duplicate payments, and other inconsistencies.
- Physical invoice storage and shipping costs
- Discounts that have been lost and penalties that have been incurred as a result of late payments, blunders, and so on.
- A total number of hours wasted by employees doing invoicing instead of their assigned tasks.
With this information, you can estimate your own invoice processing costs by adding employee costs, lost discounts, late fees, storage costs, and postal and shipping charges, then dividing that sum by the total number of invoices processed to get the average invoice processing cost.
How can you get paid quickly while processing invoices?
An average company’s cost of processing an invoice starts from $12 and goes as high as $40. The cost directly depends on the complexity of the AP processes and their relative functions. If you digitally process invoices, there can be a massive difference in your expenses.
Choosing the right technology for your business means improved efficiency, reduced costs, efficient invoice processing, and saving time, money, and resources. With Hubbroker, your company can gain up to 75% efficiency using our cutting-edge business technology. We deliver invoice processing wrapped up in minutes while reducing your per-invoice charges to a minimum, helping your scale your business and allowing your employees to narrow their focus on core business objectives.
Hubbroker enables your company to save thousands of dollars with top-notch technology while reducing the scope of errors you experience during manual invoice processing or conventional OCR technology. Our high-tech technology integrated by our clients has reduced their invoice processing cost to a bare minimum of $2.00. The potential to save money, scale your business, streamline your processes, and enhance your ROI.
In e-invoicing, the data is automatically captured with 100% accuracy and whenever a document is received, performing an extensive data extraction process and three-way validation method for verification of the information. This ensures the information extracted is correct, saving your employees time verifying the information.
After the three-way validation procedure, the invoices are transferred to the back office for processing invoices in a format that will allow automated invoice processing.
Automated invoicing aids companies in saving time and is not limited to any specific company size or industry. This means that your AP team can aim their efforts towards more crucial activities for the enhancement of your business.
Should I integrate e-invoicing in my company?
Processing invoices is hectic and worrisome that pours stress on the employees and the managing teams. Reading through the invoice and entering data from one system or a paper to another system gets you frustrated, doesn’t it?
Well, you can reduce your frustration and your costs without disrupting your current position in the market and a guaranteed chance to enhance your ROI while reducing workload.
In 2018, the American Productivity & Quality Center (APQC) report from their evaluation stated that only $2.07 was spent by the top 25% of businesses. Comparatively, the bottom 25% of the companies spent over $10 or more, five times the higher prices for a single invoice.
The key difference between the top and bottom performers is a simple and five times effective – automation. Processing invoices digitally enhance performances and trims costs through:
- Remove the use of paper, which means no storage issues, no shipping or postal costs, and most importantly, reduces carbon footprint.
- Reduced staff requirement and work hours on-premises because of automated invoice processing.
- Eliminating the scope of errors and providing reliable accuracy
- Enhanced communication channels, reminders for payments, and cloud-based storage for all-time accessibility
- Improving security and reducing frauds with in-built verification technology
- Allowing the management to focus on futuristic goals rather than micromanaging the invoicing tasks
- Gain better insights into the processes
- Streamlined processes
- Gain control over the processes and productivity
- Compatible with most formats of the invoices, hence, higher chances of onboarding new clients
To understand the company’s potential to stay afloat in the current market, ask yourself these questions.
- How is my company currently processing invoices?
- Do we handle the inbound invoices more often?
- What is the time of processing one document in my company?
- What is the cost of processing one invoice?
- Do we hire temporary staff to rectify errors that occurred during the data capturing process?
- How accurate is your data after data capturing?
- Are SLAs met for your suppliers?
- How automating the processes can help our company?
We process business documents automatically 24 hours a day, 365 days per year, all processed with 100% accuracy. With hundreds of customers and partners spread across the world, HubBroker receives and processes documents from thousands of unique senders.
We’d love to help you meet your business automation needs. Contact us today to know how we can help you reach your automation goal in record time.