Best-in-Class Invoice Processing Performance

June 22nd, 2016

By studying the benchmark for best-in-class invoice processing costs, you can effectively determine just how efficiently your business is performing: the top quartile of high performers typically fall somewhere below USD$3 spent per invoice. However, reaching and even breaking through that ‘glass ceiling’ is possible, thanks to the benefits afforded by a superior quality automated invoice processing solution.

Studies continue to show that accurate and automated invoice processing has assisted numerous organizations around the world in achieving world-class performance benchmarks: this includes

  • reducing the cost of processing a single invoice
  • minimizing the entire invoice processing cycle.

By targeting these two key areas, the simplicity of streamlined invoice processing boosts employee productivity while simultaneously improving workplace efficiency. This digital solution ultimately does away with antiquated paper invoicing archives, lowering the processing costs associated with the entire invoicing system.

The table below illustrates the difference in performance between the high performers and the average accounts payable department.

Invoice Processing Benchmarks

Metrics Best-in-Class Industry Average
Average Invoice Processing Time 3.6 days 11.4 days
Single Invoice Processing Costs (USD) $2.94 $13.47

Source: Ardent Partners: ePayables Report

Make no mistake: the manual invoicing process bears with it a whole host of challenges. Processing paper invoices is extremely labor intensive, due to necessary data entry and mail-handling tasks. Cross-referencing invoices through a variety of sources significantly increases the chances of a clerical error – one that can set you back greatly – while hard copy paper invoices are notoriously easy to lose or misplace.

Through the use of sophisticated, front end invoice scanning solutions and automated Optical Character Recognition technology, when compared to the average, those firms deemed best-in-class were able to achieve:

  • 88% lower invoice processing costs
  • 75% faster invoice processing times

Source: Ardent Partners: ePayables Report

Each and every day that passes sees the global marketplace move closer and closer to a fully integrated and digitized way of operating: digitizing your invoices enables your business to stay ahead of the curve, maximize profits, and reap the greatest rewards.

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