Determining the Costs to Process an Invoice Without Automation
The average cost to process an invoice manually has been pegged at between $15 and $20 by various studies, and polls of a sample of Octacom’s clients.
This, of course, depends on whether line items are captured and costs, proportion of PO vs. non-PO invoices, and whether 3-way matching is a part of invoice processing.
When you consider invoice exceptions, where an error is identified in the invoice that requires time to resolve internally or with a vendor, they can require a significant amount of time and complexity to the task, increasing that cost to $60 or more.
Octacom finds that average exception rates are as little as 3% of total invoices processed, but can be as high as 10% or more depending on compliance internally in the PO process and vendor compliance to listing items correctly on their invoices.
Knowing that approximately 95% or more of invoices can result in straight-through processing, there are ample savings for companies that are contemplating AP Automation, by reducing the cost to process from $20 today to as little as $1 per invoice.
If your business is spending an unreasonable amount of time and money within your AP department correcting errors and manually handling paper invoices, you should consider automating your AP processes.
Here are the main advantages of replacing manual invoice processing with AP automation:
- Eliminate manual data entry of invoice data
- Automate 2-way or 3-way PO matching
- Manage exceptions digitally with ease
- Manage approval workflows digitally
- Achieve 24 hour turnaround times with 99.9% + accuracy
- Enable your AP team to focus on more strategic areas of payables, including spend management analysis
- Increase financial certainty and efficiency ratios with low per invoice pricing
Watch the Video to See How AP Automation Works
Established in 1976, Octacom is a privately held, 100% Canadian owned company. As a business outsourcing specialist, Octacom have developed solutions for accounting, finance, healthcare, human resources and many more key business areas for companies such as Air Canada, Lafarge, Hamilton Health Sciences and OPG.
Octacom’s solutions include document conversion, mail and email handling, document indexing and data capture.
Leveraging our OdissTM Document Management Software, we create tailored solutions to simplify and automate processes by changing the way you manage, access and maintain your information, providing you with the tools you need to do things more efficiently with increased productivity.
Contact us today to learn more about Octacom’s solutions and how we can help you save money, improving your business processes and operations.