The Limitations Of Manual Invoice Processing
AVERAGE INVOICE PROCESSING TIME
In the highly competitive environment of today, streamlining processes and maximizing efficiency has become key priority for most businesses. In the world of finance, utilizing advanced software to automate invoice processing can drastically reduce processing times, improve accuracy and save significant amount of money. While it remains tempting for many businesses to continue using manual methods for invoice processing, the limitations of such an approach and the risks associated with it are worth considering.
Manual invoice processing is highly labour-intensive, with single invoice requiring multiple, redundant steps in order to be processed. This not only leads to increased waiting times and potential for errors (and their associated costs), but it can also have an impact on wider business processes, limiting the effectiveness of due diligence and potentially leading to compliance issues.
Moreover, manual invoice processing systems are unable to keep pace with the changing needs of companies. Changes in regulations or compliance demands can quickly render manual processes obsolete, leading to expensive code and policy rewrit is. Similarly, the scalability of manual systems is often limited: file storage and document management become cumbersome tasks as volume grows, and manual processes are unable to adapt to different methodologies and business requirements.
Conversely, automated accounts payable systems are not only more efficient and cost-effective, but they are also much more efficient in addressing the challenges posed by ever-changing regulatory and compliance requirements. Through automation, data can be verified with third-party systems, document duplication can be circumvented, and files can be stored securely for future reference. Furthermore, data gathered through invoice automation can be easily analyzed and transformed into valuable insights that can help to further streamline processes and decrease costs.
To summarize, manual invoice processing is both labor-intensive and considerably less efficient than the automated alternative. The risks associated with an inefficient process may not be immediately apparent, but the costs of manual system both financially and in terms of compliance adherence can be far-reaching. Ultimately, accounts payable automation offers businesses the opportunity to greatly reduce time spent on invoice processing and significantly reduce associated costs, as well as ensuring compliance with all relevant regulations.
