making the accounts payable process, efficient
TRANSCRIPT
Invoice Processing –Automating your Accounting
Accounting = Paper
• The analyst firm
Gartner believes
that, in the United
States, about 75%
to 80% of invoices
are still paper-
based.
Source: Gartner, Accounts Payable Invoice Automation, Gartner RAS
Core Research Note G00163833, December 2008
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The Costs of Paper
• Companies spend $20 to
file a document (Time,
materials, copy, etc.)
• $120 in labor to find a
misfiled document
• $220 to reproduce a lost
document
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Association for Information and Image Management (AIIM)
Paper-based Invoice Costs
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Shipping and Mail
• Branch to HQ Shipping
Costs
• Regional offices send all
their invoices to HQ for
centralized processing
• Even those that scan have
image management issues
• Time delay
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Payment Cycles
• According to IOMA,
25% of all invoices are
paid late
• Increased cycle times
with paper
• Data entry errors can lead
to added time to search
and find invoices
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Institute of Management Administration
www.ioma.com
Searching and Locating
• Audits and legal issues
can cost $$$
• Physical file searching is
painful
• Costs of finding,
removing, copying and
replacing files
• Customer service issue
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Archive and Storage
• Long term storage costs
• File cabinet space
• Disaster recovery
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Top Benefits of Digital AP
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26%
29%
34%
34%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
FEWER LOST INVOICES
LOWER PROCESSING COSTS
IMPROVED VISIBILITY OF PROCESS
AUDIT PROCESS IMPROVEMENT
REDUCED CYCLE TIMES
Accounting and Finance Survey
Imaging Adoption Survey by
Paystream Advisors
Filing Time/Cost Comparison
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• Storage Costs for Paper
Time to File: 5 minutes
Cost of Filing Invoice: $1.67
• Scanning and Imaging Costs Time to File: 30s to 1.5m
Cost: $ .50 *based on $20 per hour
3 Types of AP Solutions
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Basic
Intermediate
Advanced
Basic
• Low level of Automation
• Simple to implement
• No impact on current process
• Low cost
• Scan and Archive post processing
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Intermediate
• Invoices are scanned and routed upon receipt
• Accessed digitally for data entry
• Two screen access
• Simplified approvals
• Data validated
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Advanced
• Invoices scanned and routed upon receipt
• Data is automatically extracted & exported to financial system
• Full integration
• Top level automation and benefit
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The 5i Solution!
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Basic
• Point and Click Data Entry
• Drop downs
• Database Lookups
• Archive to 60+ Formats
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Intermediate
• All Basic Options
• Data Extraction of Header Info
• Lookups
• Automation
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Advanced
• Vendor Identification
• Automated Header and Line Item Extraction
• Archive and Data to Accounting System
• Approvals
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Process View
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