The Payables Friction Index: Barriers to Invoice Automation
Inefficient and outdated invoice processing is holding companies back and hurting their bottom lines. In fact, nearly half of Accounts Payables departments still receive invoices via fax. But it doesn’t have to be this way. For those willing to innovate, automated solutions can reduce the number of people involved and reduce manual tasks, resulting in a faster, more effective payment process.
Here are some of the key findings:
- 80.8 percent of businesses still use paper checks to pay their invoices
- Only 51.3 percent of firms expressed satisfaction with paper checks
- On average, 42.3 percent of invoices are approved in between one day and one week
- 35.5 percent of companies would implement e-invoicing to reduce manual tasks involved in processing
The Payables Friction Index: Barriers to Invoice Automation, a PYMNTS and Corcentric collaboration, quantifies the issues businesses experience in processing supplier payments and explains how automated solutions can help ease the pain. The index is based on a survey of executives at 2,570 firms and measures friction on a scale of 0 to 100, with lower scores denoting higher degrees of payments friction and higher scores indicating more seamless accounts payable processes.
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