The accounts payable departments at most businesses must feel like they are on a treadmill.
Much of their day is spent on monotonous transaction processing:
- Keying invoice information
- Tracking down approvers
- Physically routing invoices
- Following up on approvals
- Resolving exceptions via back-and-forth e-mails and phone calls
- Keying information on approved invoices into an ERP
- Handling supplier inquiries
- Printing, stuffing and mailing paper checks
- Reconciling checks and invoices
In fact, the Institute of Finance and Management (IOFM) finds that transaction processing consumes 84 percent of the average accounts payable professional’s time, leaving only 16 percent of their time for value-added activities such as data analysis, supplier management and vendor master cleanup.
The results of IOFM’s 2016 AP Key Performance Indicators Study underscore the burden of transaction processing. Of the 69 full-time equivalents (FTEs) employed in accounts payable departments (on average across all locations), all but one FTE performs invoice data-entry.
It is no wonder that improving processes and automating manual processes rank among the top of accounts payable leaders. They recognize that they need to spend less time on transaction processing and more time on value-added activities such as spend management and cash flow analysis.
That’s where accounts payable solutions come in.
Accounts payable solutions automate manual tasks such as invoice data entry and paper shuffling, filing and retrieval, freeing accounts payable staff to focus on things that matter more.
Without accounts payable solutions, staff will keep running on the treadmill.
Learn more about the strategic benefits of AP solutions.