If you’re attending the upcoming Spring IOFM Show in DC, you’ll hear a lot of buzz around accounts payable automation. One question we hear often…”How much will it cost to process our invoices?”. We’ll address that question in this post today.
Processing accounts payable invoices can be expensive for your business. But can you save money with an accounts payable outsourcing partner? A survey conducted by the International Accounts Payable Professionals (IAPP) found that it costs – on average – $8 to process an invoice manually; other firms report processing costs are as high as $10-$20 for a single paper, fax or email invoice!
Do You Know How Much it Costs to Process Your Invoices?
Many organizations often don’t know how much it costs them to process each individual invoice, but ‘cost per invoice’ is an important metric to understand – and it isn’t difficult to calculate.
If you have a dedicated Accounts Payable department, simply divide the cost of running the department by the number of invoices processed. For example, if it costs $10,000 to run your AP department each week and they process 1,000 invoices – each invoice costs your organization $10.
What is the Accounts Payable Outsourcing Savings?
The hunt for lower AP costs has led many businesses to Accounts Payable outsourcing. It’s a great way to improve performance, streamline operations and reduce costs. How much cost savings can companies realize? Switching to an automated, electronic invoice outsourced provider can generally reduce the cost per invoice to well under $2!
What Does it Take to Outsource AP?
To achieve the greatest value from outsourcing AP, the entire process should be fast and require minimal implementation to keep internal costs, set-up and training at a minimum.
An automated, accounts payable outsourced solution can be a tremendous boost to productivity, accuracy and your company’s bottom line. It’s critical to choose a partner with the expertise to craft the solution that works best for your business. And understanding your true cost per invoice is an important step towards improving your company’s efficiency.
Do you know how much AP processing costs your business each month?
Attending the Spring DC IOFM show April 6-8?
Stop by Booth #304 to find out how BerkOne can help you achieve optimal AP savings by building a custom, automated Accounts Payable solution for your business.