New Research reveals top strategies for efficient accounts payable processing – PaperLess Europe

New Research reveals top strategies for efficient accounts payable processing

New research from The Aberdeen Group suggests that the best in class companies for efficient accounts payable (A/P) processing apply 5 top strategies to their AP business process.

64% of the best in class companies in their recent research paper entitled “Invoicing and Workflow: Integrating process Automation To Enhance Operational Performance” all cited their key strategy as “invest in automation of invoice receipt and workflow process”

39% of the best in class companies identified a second key strategy of “conducting assessments of the A/P capabilities” and 29% specified “integrate Payables with back end systems”

The benefits of adopting these key strategies within the A/P function were interesting too.

Key benefits of an efficient A/P process is the cost of processing a supplier invoice, the best in class companies recorded an average cost of $3.09 and were processing invoices within 3.8 days. The laggards in comparison found an invoice costing them $38.77 to process and that this took in excess of 20 days.

This time delay on supplier invoice processing meant that the best in class companies were able to capture 31% of available early settlement discounts, twice the level obtained by the laggards in the report.

A saving in management time was also recognised as a key benefit from efficient A/P processing. The laggards in the survey experienced a 30% exception rate of supplier invoices being flagged for management, nearly 3 times the rate experienced by the best in class companies.

Invoicing and Workflow: Integrating process Automation To Enhance Operational Performance was compiled by Scott Pezza a research analyst at The Aberdeen Group and is available for download from their website for a limited period.

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Ask now for your free online demo and in 20 minutes you will find out how PaperLess software allows companies to effectively archive and link all documentation directly to their accounting transactions. See also how Automatic Invoice Recognition associated with powerful workflow features automates the entire process from the moment documents are receive until they are posted into your accounting package.

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