Best-in-Class Accounts Payable Department

23rd June, 2016

By studying the benchmark for best-in-class accounts payable costs, you can effectively determine just how efficiently your business is performing: the top quartile of high performers typically fall somewhere below AUD$2 spent per invoice. However, reaching and even breaking through that ‘glass ceiling’ is possible, thanks to the benefits afforded by a superior quality automated accounts payable solution.

Studies continue to show that accurate and automated invoice processing has assisted numerous organisations around the world in achieving world-class performance benchmarks: this includes reducing the cost of processing a single invoice and minimising the entire invoice processing cycle.

By targeting these two key areas, the simplicity of streamlined invoice processing boosts employee productivity while simultaneously improving workplace efficiency. This digital solution ultimately does away with antiquated paper invoicing archives, lowering the processing costs associated with the entire AP system.

The table below illustrates the difference in performance between the high performers and the average AP department.

Invoice Processing Benchmarks

Metrics Best-in-Class Industry Average
Single Invoice Processing Costs (AUD) $1.24 $6.60
Invoices Processed per FTE per month 3,402 640

Source: Acumen Data: AD Benchmark Report

Make no mistake: the manual invoicing process bears with it a whole host of challenges. Processing paper invoices is extremely labour intensive, due to necessary data entry and mail-handling tasks. Cross-referencing invoices through a variety of sources significantly increases the chances of a clerical error – one that can set you back greatly – while hard copy paper invoices are notoriously easy to lose or misplace.

Through the use of sophisticated, invoice scanning solutions, automated Optical Character Recognition and workflow technology, when compared to the average, those firms deemed best-in-class were able to achieve:

  • 88% lower invoice processing costs
  • 75% faster invoice processing times

Source: Ardent Partners: ePayables Report

Each and every day that passes sees the global marketplace move closer and closer to a fully integrated and digitised way of operating: digitising your invoices enables your business to stay ahead of the curve, maximise profits, and reap the greatest rewards.

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