Cost of manual invoice processing

 · Companies with complex accounts payable find themselves shelling out as much as $$50 to process each invoice. Even simple manual processes cost anywhere from $ per invoice. And these numbers only add up. In order to understand your company’s expense, you need to find out: How much time manual invoicing takes, and.  · Based on the estimate above, an invoice payment will cost your company around $1, when processed manually. In calculating the labour cost, here are the variable involved: Time consumed to process the invoices. Time consumed to review the invoices. Time consumed to evaluate and detect errors. 5 Hidden Costs of Manual Invoice Processing. Abstract: Processing invoices in a manual or semi-automated environment is a costly proposition. If your finance department is not using automation you may be spending up to four times as much time to process a single invoice when compared to your competition.

It depends on a variety of factors including the invoice volume, the percentage of PO-invoices vs. non-PO invoices, if the AP function is centralized or decentralized, and the level of automation in the accounts payable process. According to IOFM (Institute of Finance Management), invoice processing costs vary between $1 and $ The average cost to process a single invoice is $ Automation delivers an average of 29% reduction in invoice processing costs, which can translate to $, per year for an organization that processes up to 10, invoices per month. Download the IOFM report to discover how: Manual invoice processing is costing your organization. Research firm Sterling Commerce puts the average cost of processing an individual invoice at between $12 and $ Other firms narrow this gap to between $ and $ Some place it as high as $ The price, perhaps unsurprisingly, seems to be directly tied to both the complexity of your AP function and its relative efficiency—especially if.

Manual invoice processing has not only a high labor cost but also incurs other costs like using snail mail to send invoices and payments. By automating tasks like manual data entry, the costs of processing invoices significantly goes down. Plus, you won’t have to hire more staff if the volume of invoices increases in the future. PayStream Advisors research reveals the average cost of manually processing an invoice can be as high as $20, versus $4 for automated invoice processing. So if your company is processing invoices a month manually you’re probably wasting at least $50, a year. Our respondents also reported that on average, manual invoice processing accounts for over 30% of the AP team’s costs, and over 32% believe that these costs could be saved if invoice processing was automated. With the cost of processing an order from requisition through to invoice payment thought to be as much as ££40, it’s a pricey affair, in more than just a financial sense.