It is no secret that Accounts Payable (AP) departments across the world are still buried in paper. In fact, in the Institute of Finance Operations recent Automation Survey states that 70% of the respondents still receive half of their received invoices on paper. At Tungsten Network, the global leader in e-invoicing, removing paper from your AP department sits at the core of everything we do, and the heartbeat of our offering is electronic invoicing.
According to recent figures from a Europe-wide study, by fully automating the invoicing process the cost per invoice compared with following a paper trail is reduced by at least €6.60. Where does this saving come from?
A significant sum is simply the cost of the stamp and envelope, but for sent invoices the cost of payment reminders, remittance and cash management, and archiving, is greatly reduced. The highest cost to suppliers, however, often comes from the time involved in chasing customers to check they have received and are processing their invoice, and to find when they will get paid. For received invoices, cost savings come from using technology to simplify the codification, validation and matching, dispute management, payment and cash management, and archiving.
You might think that the function of an invoice – a document that ensures you get paid – is simple. You would be right. But what that document represents is so much more. Invoices put into black and white the hard graft, detailed thought and lengths of time that businesses themselves put in. To learn more on the benefits of an invoice processing service, download this report today.