Transitioning to e-invoicing has created substantial savings in time and cost; implementing a cloud-based, end-to-end payables solution will result in even greater benefits.
If e-invoice payment processes cost 60 percent less than relying on paper-based processes, why wouldn’t most companies jump to make the move to automating their invoice approval and payables processing? Daniel Andrew, vice president of strategic accounts for Corcentric, addresses this question in article published last month on PaymentSource.com.
The article, “Dumping paper invoices is vital for business relevance,” discusses the benefits of transitioning to a cloud-based end-to-end payables solution as well as the reasons companies give for resisting this move. Andrew cites an Ardent Partners report on the state of e-payables that exhibits how e-invoicing alone significantly cuts invoicing processing costs and time. According to the report, “the average cost to process a single invoice is 81% lower than the competition, while the average time to process a single invoice is 77% faster.”
Andrew then states that taking that next step, centralizing the e-invoicing process so that it links straight through to payments, is a “game-changer.” Yet companies still are reluctant to move forward, according to the Institute of Financial Management (IOFM) which notes that companies indicate too many competing projects (25%), a lack of funding (17%), and limited IT resources (12%) as their reasons to resist digitizing and automating their AP invoice approval processes.
Part of the problem, according to Andrew, is that instead of companies looking for a solution that not only best serves their own needs but also adds value for customers they look for the easiest solution. The reality is that the right solution, one that’s flexible and scalable and offers real-time visibility into each step of the process can result in a positive ROI in the very first year. This fact makes moot the reasons stated above as to why companies resist the move to an e-payables solution.
Read the full article to discover why transitioning to an end-to-end e-payables solution should be a part of your 2018 strategic finance plan.