Survey Reveals Invoice Processing Pain Points in Accounts Departments » Local Government » 24dash.com

Incomplete documents, discrepancies and lack of purchase order numbers all mean frustration for accounts payable staff, according to research by ITESOFT


13 June, 2008 -- A new survey of finance managers and senior accounts staff in UK public and private sector companies has revealed the key reasons for invoice disputes between companies. It also highlights the major invoice processing pain points that result in delays, inefficiencies and late payment penalty charges.

The survey from ITESOFT, the leading developer of electronic document capture and automated invoice processing solutions, shows that the main reasons for invoices being queried were:


=> Quantity or price discrepancy from order (64%)
=> Incomplete documentation (57%)
=> Lack of purchase order (56%)
=> No Goods Receipt Notes (32%)


Businesses also said that when it comes to Purchase Order numbers, invoices often fall short. Over half of respondents said the overwhelming majority (80% plus) of invoices they receive had no corresponding PO number.

The average number of invoices received per month across the survey sample was over 2000 resulting in hundreds of queried or disputed invoices per company, and an increased workload for AP staff.

When asked to name the top three pressures impacting their need to improve AP processes, 85% of respondents cited improving efficiency, with 73% stating reductions in invoice processing costs.

44% wanted to reduce the purchase-to-pay times, to capture early payment rebates and avoid late-payment penalties, while just 22% named regulatory compliance as a driver.

Bill Webb, UK Managing Director at ITESOFT said: Clearly, paper-based accounts payable processing is causing increased workloads and frustration for finance staff, with disputed invoices needing to be manually checked and re-processed. This is both labour-intensive and inefficient for businesses.

Automating AP activity helps to remove these common pain points identified in the survey. It streamlines invoice processing, bringing proven cost and efficiency gains, and improves internal processes to avoid late penalty charges, enabling companies to benefit from early payment discounts.

Although around half of the organisations surveyed (53%) did not yet have in place an accounts payable or supplier invoice automation solution, just under two thirds of them were actively looking to automate their accounts payable activity in the near future, or had already taken steps to implement a solution.

ITESOFT's extensive Spring 2008 survey asked 206 finance managers and senior AP staff in UK public and private sector companies about the key causes of invoice disputes, and the impact invoice automation was having in improving financial processes and boosting internal efficiency.


http://www.itesoft.co.uk / 01252 741500