If reduced spending is among your organization’s goals for 2017, issuing purchase orders for more of your spending, and automating your process for managing purchase orders, is a good place to start.
Fifty percent of all invoices are against a purchase order, according to the Institute of Finance and Management (IOFM). The ability to match invoices to purchase orders accelerates invoice approval cycle times. Twenty-seven percent of businesses process purchase order-based invoices in less than four days from the receipt of the invoice, IOFM research finds. Only 25 percent of businesses process non-purchase order-based invoices in less than four days from the receipt of the invoice.
Similarly, 21 percent of businesses report an average cycle time of less than four days from the invoice date to process purchase order-based invoices. Only 18 percent of businesses process non-purchase order-based invoices in the same amount of time, according to IOFM’s research.
Automating the management of purchase orders delivers additional benefits.
Electronic invoicing solutions such as NexusPayables enable organizations to improve visibility into purchases, better manage spend, strengthen internal reporting, tracking and control, and reduce invoice processing costs. Since all transactions are handled electronically, delivery of purchase orders, acknowledgement of purchase orders, and changes to purchase orders are immediately verifiable. With purchasers and the accounts payable using the same system, organizations also gain control over purchases, payables, and disbursements. This is a big reason that more organizations are deploying electronic invoicing solutions in order to automate the procure-to-pay cycle.