15 Scary Facts About Accounts Payable
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15 SCARY FACTS ABOUT ACCOUNTS PAYABLE By Melissa Henley @ECM_marketeer
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Inefficient paper-based processes plague AP operations, making it one of the scariest processes in the office. POs and invoices go in, sometimes never to be seen again. But what should scare you the most about accounts payable?
Transcript of 15 Scary Facts About Accounts Payable
15 SCARY FACTS ABOUT ACCOUNTS PAYABLE
By Melissa Henley @ECM_marketeer
Inefficient paper-based processes plague AP
operations, making it one of the scariest
processes in the office. POs and invoices go in,
sometimes never to be seen again.
But what should scare you the most about
accounts payable?
SCARY FACT #1:
52% of AP departments say their top priority is
migrating away from paper-based processes ...
Source: Ardent Partners
SCARY FACT #2:
… 80% of invoices still arrive on
paper.
Source: The Accounts Payable Network
SCARY FACT #3:
Only 14% of paper invoices are input
into the AP system on the day they
arrive.
Source: The Accounts Payable Network
SCARY FACT #4:
47% of AP leaders feel lengthy processing times are their
biggest challenge.
Source: Ardent Partners
SCARY FACT #5:
A manual invoice process can sometimes exceed
15 steps before the final posting is done.
Source: Stellent Partners
SCARY FACT #6:
With minimal automation, it may
take up to 16.3 days to process a
single invoice.
Source: The Aberdeen Group
Source: Institute of Finance & Management (IOMA)
SCARY FACT #7:
The average cost of processing an invoice in an environment with a
low level of automation can be up to 20 times greater than in an
environment with a high level of automation.
SCARY FACT #8:
When vendors send invoices directly
to purchasers, it takes 5+ days
for the invoice to reach AP.
Source: 2012 AP Benchmarks Research Report
SCARY FACT #9:
The industries with the highest costs to process invoices are
non-profit/education ($16.78) and government ($15.86).
Source: Institute of Finance & Management (IOMA)
$10.58: The average cost to process a PO invoice
The scariest facts you didn’t know about POs
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$11.63: The average cost to process a non-PO invoice
2,462: PO invoice payments processed monthly by an AP staffer
2,049: Non-PO invoice payments processed monthly by an AP staffer
Source: Institute of Finance & Management (IOMA)
SCARY FACT #14:
On average, 3.6% of invoices have errors.
Source: Institute of Finance & Management (IOMA)
SCARY FACT #15:
Organizations lose an estimated 5% of their
annual revenues to fraud.
Source: Association of Certified Fraud Examiners
Thanks for reading!
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