How to Reduce Manual Invoice Processing Costs?

Accounts payable (AP) managers have a variety of innovative resources available to them including automation, outsourcing, and data technologies to improve their bottom line. If you’re looking for ways to cut down on labor-intensive processes, improve employee efficiency, and lower costs, AP management software can help you reach your goals.

At DRS Imaging, our team of experts can help you build custom AP automation systems.  Contact us today to reduce your invoice processing costs by streamlining operations, improving internal processes, and eliminating manual errors. 

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How AP Automation Reduces Labor Costs

How much does it cost to process an invoice manually? Approximately $15. But for larger companies with more complex systems, that number climbs as high as $40 per invoice. (Accounts Payable Network). 

That’s an expensive way to make money.

Why so much? Because of the work involved. Manual invoice processing requires workers to carry out time-consuming processes like data entry, sorting, batching, coding, approvals, receiving and sending reports, and tracking orders. That’s on the front end. Then there’s the time cost of fixing incorrectly coded line items and manual key-in errors after the fact. When manual tasks take longer to complete than they should, the time, materials, and human resources to get the job done naturally increase.

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Maximize Resources

With AP automation solutions, the manual processes involved in common tasks can instead be completed with smart software at a much faster pace without wasting employee resources.  

Software flags errors, automatically matches purchase orders to invoices, then automatically codes the invoice. No manual data entry required. No room for human error. This means you can capture, route, code, request approval, and pay the right supplier quickly. The risk of errors, fraud, and late payments goes down, significantly reducing the cost of invoicing.

Just how much will you save if you automate?

60-80% over manual processing with the average per invoice costs lowered to $5 or less per invoice. (Beanworks) 

Switching to a digital system allows AP managers to automate routine and recurring tasks while utilizing human resources for skilled work that gives their business a competitive advantage. Employees are able to shift their focus to productive activities like customer service, analysis, process improvement, and decision support.

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Reduce Reliance on Paper Assignments

AP automation contributes to a lower environmental impact with a paperless workplace, while also helping to eliminate errors with duplicate assignments. AP automation software detects duplication at every stage, streamlines business processes, and eliminates human errors.

Focus on Process Accountability

Manual workflows can cause a lack of invoice visibility in the purchase approval process. If proper training isn’t provided, or if process delays aren’t user-friendly, employees may ignore formalities to get to what they need.

AP Automation software can add value to businesses. By simplifying processes, tracking progress, and identifying milestones, employees are more accountable for their work performance.

Outsourcing Invoice Processing as a Service

Handling incoming invoices can be a complex process with multiple compliance standards to follow. With outsourcing services, professionals handle your invoicing process accurately, efficiently, and effectively so that you don’t have to.

Other benefits of outsourcing include:

  • Paperless document management
  • Automating workflow processes and exception handling
  • Reclaiming early payment discounts
  • Dramatically cutting audit prep time
  • Cutting costs and saving employee work time

Reducing labor costs through automation frees up capital that can be used in different investment opportunities. Service providers also use workflow automation to reduce their costs in order to make their services more affordable.

Document Management and Data Capture Software

Since documents come from different sources, managing business information becomes essential for companies that want to streamline operations. Depending on the nature of your business, a document management solution that captures, stores, and retrieves both paper and electronic documents can provide many key benefits:

  • Reduced physical storage space—eliminate cabinets, boxes, and storage bins
  • Enhanced security—control sensitive documents and access audit trails
  • Improved regulatory compliance—reduce the risk of fines, revoked licenses, and liability
  • Faster retrieval—take advantage of digital search engines to retrieve  information
  • Easier collaboration—access documents from multiple locations
  • Better backup—protect against floods, fire, and other disasters

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Other benefits of digital management systems include intangibles like improved flexibility, competitiveness, productivity, increased staff morale, and client satisfaction.

Document management and data capture solutions are scalable to meet the changing needs of any enterprise. Systems can be installed in any company, big or small, and on any budget.

DRS Imaging AP Automation Systems for Your Manual Invoice Processing Costs

By implementing AP automation software, your managers can organize and evaluate important data, improve communication throughout all levels of the organization, and better support company goals.

DRS Imaging provides a complete line of outsourcing services:

  • Document Scanning
  • Document Imaging
  • Document Management Software
  • ECM Software
  • SaaS Cloud ECM
  • Electronic Forms
  • Data Capture.

DRS also provides turnkey document management systems, document scanners, and OCR & ICR capture platforms.

All of our solutions create impressive returns on investment. We’re building custom systems for AP managers, with priorities on invoice automation, improved processing solutions, and systems that save time and money. 

Contact us today to see how we can reduce your invoice processing costs.

 

Digital Transformation Experts