At most businesses, invoice processing is as frustratingly slow as rush hour traffic.
It takes businesses an eye-popping 13.79 days to approve invoices received via paper, e-mail/PDF attachment or fax (from invoice receipt to ready-to-pay), and a surprising 8.41 days to approve invoices received electronically, according to the Institute of Financial Management (IOFM).
It is no wonder that businesses surveyed by IOFM pay only 81.4 percent of the invoices they receive on-time, while the objective for on-time invoice payment at most businesses is more than 90 percent.
Not paying invoices on-time results in late-payment penalties, missed early-payment discount opportunities, lots of calls and e-mails from suppliers, and strained supplier relationships.
Businesses can shift their invoice processing into high gear with electronic invoicing solutions, such as NexusPayables. Electronic invoicing solutions eliminate the time-consuming manual processes that result in posting delays, maddening errors, and back-and-forth inquiries with suppliers.
Through highly configurable automated workflows and support for mobile review, electronic invoicing also speeds invoice approval and exceptions resolution.
Organizations with electronic invoicing solutions can process invoices in less than half the time of average companies (3.7 days versus 8.8 days) and in less than one-third the time of laggards (3.7 days versus 14.3 days), according to PayStream Advisors’ 2015 Invoice Workflow Automation report.
Faster cycle times enable businesses to eliminate late-payment penalties, strengthen supplier relationships, gain leverage at the negotiating table, and capture more early-pay discounts.