Admittedly, the title of this blog article sounds a bit as though it comes from a standard reference of business literature. Somewhat sceptical users may even feel like I wanted to creep up on them here and sell them something … however, a closer look at the issue quickly shows that the automated processing of incoming invoices actually shows a lot of potential for reducing costs and increasing cash flow.
A simple calculation
Many companies invest a lot of time in the still very paper-based processing and checking of incoming invoices. Today, analysts assume that every paper-based invoice costs about Euro 15 and the electronic, automated way can reduce these costs by approximately 80%. So it pays to read on.
Two gateways with savings potential
Reducing costs – how does that work? The biggest savings are mainly to be found in two places in present paper-based process. One place is the inbox where, in addition to open and sort, further steps are necessary in order to prepare documents. The other place with a high potential for savings is in the automatic detection of relevant billing information for later posting. With an average of 150 invoices per day, in both functional areas 6 to 8 hours can be quickly saved – per day, that is!
Increase cash discounts received
In addition to reducing costs, there is a special focus on increasing available funds for many projects. An essential part of the automated processing of incoming invoices in many projects is therefore the use of release scenarios to enable the professional and objective approval of invoices. The aim is to check the document as quickly and transparently as possible and to then prepare payment. This can then easily take place via smartphone or tablet too. Depending on the size of the organization and the decentralized nature of the approval, lead times can be reduced to a few days or hours and the total discount thus increased.
Experience from over 600 projects
In the meantime, we at EASY have implemented 600 projects for optimizing the processing of incoming invoices with our partners. In almost all projects, we were able to work with our customers to achieve the effects described and thus realize ROI already within the first 12 months for our customers. And here we come full circle to my entry: in the automated processing of incoming invoices there is actually a lot of potential for reducing costs and increasing cash flow. It really is an issue that pays off for every company.