The numbers you need to know from the IOFM White paper
Accounts payable departments are among the most acutely affected by out-dated, labour-intensive, paper-based systems – they are at the frontline of the war being waged against paper by many organisations. This month, the Institute of Finance and Management (IOFM), in partnership with M-Files, released a white paper explaining how enterprise information management (EIM) systems can address the challenges faced by accounts payable departments.
The paper contains a number of interesting stats – we’ve highlighted the most important ones that you need to know and what they mean for your organisation.
- Paper is a problem that isn’t going away any time soon
Nearly 60% of invoices still arrive as paper documents
- Accounts payable automation is an all-round solution to inefficient paper-based processes.
The top 3 benefits cited in an AIIM survey are a 1) faster turnaround time to payment, 2) better monitoring of invoice status, and 3) better records for audit trail or litigation. Other benefits included fewer invoices “lost in the loop”, and a more efficient and professional approach to dealing with suppliers.
- Organisations quickly recoup their costs
Automation can reduce the average cost of processing an invoice by approximately one third. 22% of organisations achieved a return on investment in 6 months or under, and 63% in 12 months or under.
- Companies are prioritising accounts payable as an area for investment and automation
63% of those surveyed say that accounts payable is a priority for improvement in 2015, and nearly two thirds reported that accounts payable will receive additional investment for process improvement projects this year.
We’ve seen these stats in reality, as more and more businesses come to us seeking to automate invoice processing. You can read about some of them here. Clearly the implementation of document capture and management solutions is a priority for finance departments.
You can read the full white paper here. Do these statistics reflect your experiences?