The challenges
High costs
Manual invoice processing is slow, expensive and prone to errors. Research has shown that it costs on average £1.49-£7.46 to process an invoice and up to five days (1). Data entry takes most accounts payable time and 20% of invoices are paid late, often incurring financial penalties.
Low productivity & inefficiency
Slow, inefficient invoice processing is costly and lost documents increase the risk of errors and can be very time consuming. Resolving discrepancies, handling disputes and answering supplier queries result in slower procurement and damage supplier relations.
Inadequate control
Without proper control over the invoice process, maintaining optimum cash flow is difficult – outstanding liabilities are unclear and correct forecasting can be severely hampered. It is difficult to ensure efficiency unless you can easily analyse process performance.
Poor compliance
Retrieving and auditing invoice data is essential to ensure it has been captured correctly. Data must be securely archived.
The benefits
Reduced costs
Automating invoice processing can help cut processing times, reduce late penalty payments and avoid costly invoice disputes. It can also help you to leverage early payment discounts. According to AIIM’s latest research, invoice cost reductions of 25%-50% could be expected with Accounts Payable automation.
Increased productivity and efficiency
Manual data entry time is dramatically reduced and input accuracy improved – so you can focus more time on revenue generation or customer service. The availability of invoice documentation for query, dispute and audit can be improved and the number of lost invoices reduced.
Greater control
Reporting systems deliver clear invoice status allowing you to answer supplier queries first time. Process reports allow you to identify bottlenecks, areas for improvement and any changes in performance over time.
Improved compliance
Retrieval of documentation for auditing is quick and easy, while approval steps and ownership are readily identifiable. It can also be integrated into your retention and compliance policies.
End-to-end solution
Focus on core business
Invoice processing is critical to keep cash flowing through your business. Parseq offer a complete automated solution to help you meet all your invoice processing challenges, enabling you to focus on your core business.
- Invoices are processed quickly and efficiently – from document scanning right through to archiving.
- Smart Accounts Payable reporting options put you in control while all errors are flagged for attention.
- Invoices can be linked to purchase orders or delivery notes automatically before being sent for mobile authorisation.
To discuss how we can enhance the performance of your invoice processing or how we might be able to support you with our wider service offering, please email us at info@parseq.com
(1) AIIM – Finance and Accounting in 2017: Automating Core Information Workflows
