Accounts Payable Automation:

Solving the Paper Pain

Accounting = Paper

•The analyst firm Gartner

believes that, in the

United States, about 75%

to 80% of invoices are still

paper-based.

Source: Gartner, Accounts Payable Invoice Automation, Gartner RAS

Core Research Note G00163833, December 2008

The Costs of Paper

•Companies spend $20 to file a

document (Time, materials, copy, etc.)

•$120 in labor to find a misfiled

document

•$220 to reproduce a lost

document

Association for Information and Image Management (AIIM)

Shipping and Mail

•Branch to HQ Shipping Costs

•Regional offices send all their

invoices to HQ for centralized

processing

•Even those that scan have image

management issues

•Time delay

Payment Cycles

•According to IOMA, 25% of

all invoices are paid late

•Increased cycle times with

paper

•Data entry errors can lead

to added time to search and

find invoicesInstitute of Management Administration

Searching and Locating

•Audits and legal issues

can cost $$$

•Physical file searching is

painful

•Costs of finding, removing,

copying and replacing files

•Customer service issue

Archive and Storage

•Long term storage costs

•File cabinet space

•Disaster recovery

Top Benefits of Digital AP

0.26

0.29

0.34

0.34

0.36

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4

Fewer Lost Invoices

Lower Processing Costs

Improved Visibility of Process

Audit Process Improvement

Reduced Cycle Times

Accounting and Finance Survey

Imaging Adoption Survey by Paystream Advisors

Filing Time/Cost Comparison

•Storage Costs for Paper–Time to File: 5 minutes

–Cost of Filing Invoice: $1.67

•Scanning and Imaging Costs–Time to File: 30s to 1.5m

–Cost: $ .50

*based on $20 per hour

Summary

Paper processing is expensiveDigital AP provides a variety of benefits

Efficiency

Productivity Gains

Reduced Costs

Invoice Processing Solutions by inFORM