"Whoa, we are not so bad", exclaimed a famous football club president facing his critics. This, we are not so bad, is our conclusion after observing some of the results of a study carried out by mineraltree, a reputable American software company that offers solutions for AP automation.
The study was conducted during September and October 2016. !52 American companies participated in the study and it concluded with some interesting results
In order to support our "we are not so bad" statement, we will compare the results of the mineraltree study with an easyap study of Spanish companies conducted in the second quarter of 2016, as well as one conducted by easyap with its customers.
1.- Application of productivity metrics in Accounts Payable
In an activity such as the processing of supplier invoices, involving manual work, and therefore, with a high cost, it is essential to use metrics that can be checked periodically to check their evolution, and to verify if the measures implemented are adequate. If, in addition, these metrics are standard, we can also contrast our productivity with that of similar companies. The standard metric par excellence for measuring the productivity of an Accounts Payable department is the Cost of Processing by Supplier Invoice.
When asked do you know what it costs for your organization to process a supplier invoice, including personnel costs, indirect costs, costs and / or depreciation of hardware and software, etc.?
- A total of 69% of those surveyed answered yes, that they were aware of this fact. It is significant, however, to note that to the same question, a year earlier, the affirmative answer was only 25% of the cases. This circumstance suggests an increased sensitivity to control an important source of costs such as those generated by the Accounts Payable department.
- In the study carried out in Spain by easyap, only 39% of companies acknowledged that they were aware of the cost of processing their supplier invoices
- Finally, in the case of esyap customers, 100% of customers knew their cost per invoice. easyap invoices a price for each invoice processed, which only have to add the direct and indirect costs of the person, in some cases two, directly involved in the activity..
Cost of Processing per Supplier Invoice
- The study of mineraltree reflects that 45% of those surveyed are incurring in The mineraltree study shows that 45% of respondents are incurring less than $ 5 of cost per supplier invoice, 73% under $ 10 (23% more than the previous year), while bad performers Are: 13% whose cost is between 11 and 15 USD, and 14% in 15+ USD per invoice.
- In the case of the study of Spanish companies carried out by easyap, 36% of the respondents stated that they had a cost per invoice of less than EUR 7, 53% between 7 and 12 EUR, and 11% with a cost of 12+ EUR
- In the case of easyap customers, 42% claim to have a cost of less than EUR 3.5 per invoice and the remaining 58% below EUR 4,8.
For those companies interested in their costs, easyap has launched a tool that will allow you to calculate the cost of supplier invoice processing.
Click to access our Cost per Supplier Invoice Calculator .
Persons involved in the process of processing of Supplier Invoice
The number of people through which an invoice passes during the process is also an important indicator. without doubt, the more people involved in the processing, the higher the error rates, the longer it takes a provider to receive the payment and the more likely it is that an invoice will be lost in the process.
- In the study of mineraltree in the American market, close to about 60% of respondents said that each of their bills is "touched" by two or three people from the time of receipt to payment, while 33% stated 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 passed between one and three people, while the rest (74%) involved 3 or 4 people.
- 100% of easyap customers, meanwhile, 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 pace. These new technologies and AP Outsourcing companies are transforming the traditional Accounts Payable departments, from Cost Centers, to revenue generators. At easyap we are sensitized with cost containment in the Accounts Payable area of our customers while maintaining high quality, safety and solvency rates. If you want us to have a talk about how we do it, do not hesitate to contact us.