Sluggish revenue growth is forcing businesses to look for new ways to increase profit margins. Automating invoice processing is one proven way to wring costs out of a business. Only about one-in-four businesses has highly automated accounts payable processes, IOFM finds. As a result, it costs nearly 40 percent of businesses more than $6 to process a single invoice.
Accounts payable solutions such as NexusPayables reduce invoice processing costs by up to 60 percent by automating the manual processes that drive up operational costs by:
• Capturing data from incoming invoices
• Matching invoices to the relevant purchase order and/or and receipt of goods
• Passing matched invoices to downstream systems
• Routing invoices for review and approval based on business rules
• Collaborating with internal and external stakeholders to resolve exceptions
• Storing and retrieving invoices and audit trails
Moreover, NexusPayables enables suppliers to submit invoices electronically through a portal, delivering further cost savings through the elimination of document scanning. Supplier portals allow for the fast and secure electronic submission of invoices 24/7, while providing suppliers with access to invoice and payment status, replacing costly and time-consuming calls or e-mails to the buyer.
These are some of the reasons that it costs best-in-class accounts payable organizations (which typically have the highest levels of automation) an average of $2.20 to process an invoice, while all other organizations pay an average of $19.10 to process an invoice, according to Ardent Partners. These cost savings can go a long way to helping your business increase its profit margins.