Outsourcing AP: How much should it cost me to process a Supplier Invoice?

Cost per Invoice

Processing supplier invoices, from receipt to posting and availability for payment, is undoubtedly the process in which more costs are incurred in the financial area. In particular, due to the high exposure to manual labor of the associated activities. But can costs really reduce by an Accounts Payable outsourcing partner? A survey carried out by easyap of financial professionals in Spain found that the cost of processing a supplier invoice is, on average, € 5.7, although there are companies that reach € 15 and € 17 for a single paper invoice, fax or email.

Do you know how much it costs to process your invoices?
Many organizations often do not know how much it costs them to process each individual invoice, but "cost per invoice" is an important metric, and it is not difficult to calculate. In fact, easyap makes available to its customers and friends a Supplier Invoice Processing Cost Calculator, where, by answering a few questions, the cost per invoice can be obtained, as well as a comparison with the average metrics of its sector.

Where are the advantages of Accounts Payable Outsourcing?
The pursuit of cost reduction has led many companies to outsource Accounts Payable. This is a very good strategy to improve performance, streamline operations and reduce cost.

 How far does cost reduction go?
Switching to an Accounts Payable Outsourcing provider can reduce the cost per invoice to less than 3 EUR.

What does it take to outsource AP?
To achieve the highest value of AP outsourcing the process must be fast, require minimum implementation ensuring integration with existing supplier, order and payment systems, and providing configuration and training for users. With an outsourcing partner the number of invoices that are dealt with unattended - without human intervention - increases very considerably, however, it will always be necessary to maintain a small accounting team for decisions regarding invoices that may require the review of an accountant.

Outsourcing of Accounts Payable offers significant benefits to companies, including:

  • Reduction of labour costs - our customers have experienced up to a 61% reduction in labour costs
  • Lower cost per invoice – less than 3 Euros per invoice
  • Fast and seamless implementation – integrated in the current Company systems
  • Custom configuration for each company – through cloud-based systems
  • Improved precision - in easyap, our customers have reported that it costs them up to 45-50 EUR to manage each invoice with errors. A solid AP Outsourcing partner uses sophisticated identification systems and error correction algorithms that allow them to automate error management and minimize costs.
  • Full auditing traceability- as well as registering systems and instant reports
  • Routing invoices through smartphones or browsers – making the invoice approval process easier

 

An automated Accounts Payable solution can be a tremendous boost to productivity, accuracy and ultimately to your company's bottom line. It is essential, however, to understand the true cost per invoice, which is an important step towards improving efficiency, and selecting a partner with the necessary experience to design and implement the solution that works best for your business.

At easyap we have been processing invoices for our customers for 15 years, always obtaining cost reductions above 27.8%.​ Let's talk.