“To parrot, we’re not so bad,” was the exclamation of a famous football president to some of his detractors. That same, we are not so bad, is our conclusion when observing the results of the study carried out by mineraltree, a renowned American company of software solutions for the automation of accounts payable.
The mineraltree study, carried out between September and October 2016, was carried out with the participation of 152 American companies, and has concluded with interesting results.
To support our statement that “we are not so bad”, in this article we will compare the results of the mineraltree study with that carried out by easyap with Spanish companies throughout the second quarter of 2016, and also with that carried out by easyap among its clients.
1.- Application of productivity metrics in Accounts Payable
In an activity such as the processing of supplier invoices, so exposed to manual work, and consequently, with a high cost, it is essential to use metrics that can be periodically compared to contrast their evolution, and thus check if the measures of actions that are implemented are adequate. If, in addition, these metrics are of a standard nature, we can also compare our productivity with that of similar companies. The standard metric par excellence to measure the productivity of an Accounts Payable department is the Processing Cost per Supplier Invoice.
When asked, do you know what it costs your organization to process a supplier invoice, including personnel costs, indirect costs, hardware and software costs and / or depreciation, etc.?
- 69% of respondents answered that yes, they knew this information. It is significant, however, to observe that when faced with the same question, a year earlier, the affirmative answer was only in 25% of the cases. This circumstance suggests an increase in sensitivity due to controlling an important source of costs, such as those generated by the Accounts Payable department .
- In the case of the study carried out in Spain by easyap , only 39% of companies acknowledged having become aware of the cost of processing supplier invoices
- Finally, in the case of esayap clients , 100% of the clients knew their cost per invoice. easyap invoices them a price for each invoice processed, to which they only have to add the direct and indirect costs of the person, in some cases two, directly attributable to the activity.
2.- Processing Cost per Supplier Invoice
- The mineraltree study reflects that 45% of respondents are incurring less than 5 USD of cost per supplier invoice, 73% less than 10 USD (23% more than the previous year), while bad performers They are: 13% whose cost is between 11 and 15 USD, and 14% in 15+ USD per invoice.
- In the case of the study among Spanish companies carried out by easyap , 36% of those surveyed claimed to have a cost per invoice lower than 7 EUR, 53% between 7 and 12 EUR, and finally, 11% with a cost of 12+ EUR
- In the case of easyap customers , 42% claim to have a cost less than 3.5 EUR per invoice and the remaining 58% less than 4.8 EUR.
easyap has launched, for those companies aware of cost containment, a tool that makes it easy to obtain the cost of processing supplier invoices. To access … Processing Costs Calculator by Supplier Invoice
3.- People involved in a Supplier Invoice processing process
The number of people an invoice passes through during the process is also an important indicator. Without question, the more people involved in processing, the more people who touch an invoice, the higher error rates, the longer it takes a vendor to receive payment, and the more likely an invoice will be lost in the process.
- In the mineraltree study in the American market, about 60% of those surveyed said that each of their invoices is “touched” by two or three people from the moment of receipt to payment, while 33% were placed between four and five people.
- In the case of the study carried out by easyap in Spain, 26% of the participants stated that each invoice went through between one and three people, while the rest (74%) involved four or more people.
- 100% of easyap clients , for their part, declare that no person in their organization physically touches an invoice since the entire process, from receipt to posting and payment is electronic.
Technology continues to evolve at an exceptional rate. These new technologies and AP Outsourcing companies are transforming the traditional Accounts Payable Departments, from Cost Centers, to revenue generators. At easyap we are aware of cost containment in the Accounts Payable area of our clients while maintaining high quality, security and solvency rates. If you want us to have a talk about how we do it, feel free to contact us .