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Automating Accounts Payable functions to boost efficiency and reduce costs is key, according to new research on the pressure points faced by corporate AP staff

 · 85% of companies believe automated invoice processing boosts efficiency

· 73% of companies say automation will reduce invoice processing costs

13 May 2008 -- Boosting efficiency and cutting processing costs are the key drivers for businesses wanting to improve their accounts payable (AP) processes, according to a new survey from ITESOFT, the leading developer of electronic document capture and automated invoice processing solutions.

ITESOFT's email survey of finance managers and senior AP staff in UK public and private sector companies, showed that automation benefits such as reducing purchase-to-pay times and ensuring regulatory compliance were secondary compared with efficiency gains and cost reductions.

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 thereby capturing early payment rebates and avoiding late-payment penalties, while just 22% named regulatory compliance as a driver.

The survey also revealed the three biggest causes of invoice queries in business, which clearly show the link between efficiency gains and reducing reliance on paper-based AP processing. Although quantity or price discrepancies was named as the biggest cause of queries by 65% of respondents, incomplete documentation (57%) and lack of purchase order (56%) scored highly, with no Goods Receipt Notes scoring 32%.

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.

Bill Webb, UK Managing Director at ITESOFT said: “The survey findings make a compelling case for deploying automation, with the majority of UK businesses looking to this technology to improve their accounts payable and invoicing processing performance.

“By automating core business processes such as accounts payable, which are traditionally extremely paper- and labour-intensive, organisations can significantly streamline the handling and processing of supplier invoices. As well as achieving efficiency gains and cost savings, companies can get additional benefits such as early payment discounts and avoiding late-payment penalties.”

http://www.itesoft.com