With revenue growth hard to come by, it is no surprise that the C-suite is keen on improving staff productivity. Strong staff productivity contributes to higher profit margins and net income.
Seventy-five percent of CFOs measure accounts payable performance based on productivity metrics such as the number of invoices processed and the number of payments made, Ardent Partners reports. Controllers rank improved staff productivity among their top accounts payable priorities.
Electronic invoicing solutions such as NexusPayables go a long way to helping the C-suite achieve these objectives.
For instance, electronic invoicing drives higher first-pass match rates. The technology automates two-way and three-way matching of invoices and purchase orders and/or goods receipts. Matching rules can be configured based on business tolerances, and any unmatched invoices are electronically routed for resolution. All of this reduces manual data entry, eliminates paper shuffling, and avoids the need for staff to hunt for information. Best-in-class accounts payable organizations have a first-pass match rate of 57 percent, compared to a 16 percent first-pass match rate for other organizations, according to Ardent Partners’ ePayables 2016 report.
Electronic invoicing also increases staff productivity through streamlined exceptions handling. The top sources of invoice exceptions are discrepancies between a purchase order and invoice, the lack of a purchase order, bottlenecks in the invoice approval process, and incorrect purchase order information. Electronic invoicing solutions streamline exceptions handling by providing upfront line-level on-hold reasons for unmatched invoices.
This is one reason that best-in-class organizations have approximately half as many invoice exceptions as their peers, according to research from Ardent Partners.