Business Development Executive PaperLess Europe Limited
Blogger
Share this content

New Research reveals top strategies for efficient accounts payable processing

28th Jun 2011
Business Development Executive PaperLess Europe Limited
Blogger
Share this content

New research from The Aberdeen Group suggests that the best in class companies for efficient accounts payable (A/P) processing apply 5 top strategies to their A/P business process.

64% of the best in class companies in their recent research paper entitled  “Invoicing and Workflow: Integrating process Automation To Enhance Operational Performance” all cited their key strategy as “invest in automation of invoice receipt and workflow process”

39% of the best in class companies identified a second key strategy of “conducting assessments of the A/P capabilities” and 29% specified “integrate Payables with back end systems”

The benefits of adopting these key strategies within the A/P function were interesting too.

Key benefits of an efficient A/P process is the cost of processing a supplier invoice, the best in class companies recorded an average cost of $3.09 and were processing invoices within 3.8 days. The laggards in comparison found an invoice costing them $38.77 to process and that this took  in excess of 20 days.

This time delay on supplier invoice processing meant that the best in class companies were able to capture 31% of available early settlement discounts, twice the level obtained by the laggards in the report.

A saving in management time was also recognised as a key benefit from efficient A/P processing. The laggards in the survey experienced a 30% exception rate of supplier invoices being flagged for management, nearly 3 times the rate experienced by the best in class companies.

Invoicing and Workflow: Integrating process Automation To Enhance Operational Performance  was compiled by Scott Pezza a research analyst at The Aberdeen Group and is available for download from their website for a limited period.

Accounting the PaperLess way ™
 

Tags:

You might also be interested in

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.