Corcentric Report Quantifies Major Issues with Processing Manual Payments
Payables Friction Index Highlights Accounts Payables Antiquated Practices
CHERRY HILL, NJ – Many companies of all sizes are stuck in a rut of manual processes when it comes to their Accounts Payable (AP) departments, according to a new report from Corcentric, The Payables Friction Index: Barriers to Invoice Automation. More than 80 percent of businesses surveyed still use paper checks to pay their invoices.
“Our report proves that most AP departments are stuck in a ‘go with what you know’ approach,” commented Matt Clark, president and COO, Corcentric. “While paper checks might be the most common form of payment, our findings show that about half of the departments using this method are dissatisfied with it. Through digital solutions, companies can quickly become 100 percent paperless, evolve their AP departments from cost centers into revenue-driving teams, and make informed business decisions based on real-time and historical data.”
Notable findings from the Payables Friction Index include:
- 4 percent of AP professionals cite snail mail as the most frequent way they receive invoices
- 8 percent of AP professionals regularly receive invoices via fax
- AP professionals are losing their patience with paper checks as a payment method; there is a 30-point satisfaction gap between departments using paper checks and their payment preference
- Nearly 45 percent of invoices take a week or longer to process
- 5 percent of companies would implement e-invoicing to reduce manual tasks involved in processing
- By automating the AP process, companies are able to reduce invoice processing costs by 80 percent
The companies in the study identify e-invoicing as a way to remove manual process frictions – the highest share (35.5 percent) would implement them to reduce manual processing, 34.2 percent would do so to minimize the number of people required and 32.9 percent wanted to reduce the time involved in AP processing. Automation also removes processing bottlenecks, secures an audit trail for compliance and improves supply chain visibility.
Corcentric provides a full suite of proprietary digital AP solutions, including payments, purchase orders and approvals workflow. These tools enable companies to streamline, automate, and transform their entire AP process from purchase order to payment, removing the layers of friction cited in the report. The Payables Friction Index was conducted in partnership with PYMNTS.com and is based on a survey of executives at over 2,500 companies, addressing questions in three main categories: invoice receipt, invoice approval and invoice payment.
Corcentric is a leading provider of source-to-pay and order-to-cash solutions for businesses in the United States and Europe. Corcentric’s procurement, accounts payable, and accounts receivable solutions empower companies to spend smarter, optimize cash flow, and drive profitability. Corcentric was named a 2019 ‘50 Providers to Know’ by Spend Matters and a leader in IDC MarketScape: Worldwide SaaS and Cloud-Enabled Accounts Payable Automation 2019. Since 1996, more than 6,000 customers from the middle market to the Fortune 1000 have used Corcentric to reduce costs and improve working capital. Learn more at corcentric.com