The Accounts Payable process can be extremely tedious for any organization. Invoices need to be opened, approved by the appropriate administrators, processed and entered into a database, and of course, paid. Educational institutions are no stranger to this process. With invoices from everyone from the cafeteria vendors to the office supply providers, both K-12 and higher education institutions deal with a plethora of paperwork to stay on top of Accounts Payable.
Without an automated solution, processing invoices is not only time-consuming and laborious, but it’s also costly. Here’s a quick breakdown of the cost of manual invoice processing:
- It costs $22.75 to manually process an invoice
- The average span of time it takes to manually process one invoice is 16.3 days
- The percentage of companies that can take advantage of a prompt pay discount on paying their invoices is 16%
Automating invoice processing saves schools a significant amount of time and money. With shrinking budgets and growing expectations, schools can greatly benefit from an automated Accounts Payable process. Here’s what the same elements look like with an automated process:
- It costs $3.40 to process an invoice with an automated AP solution
- The time to process an invoice is cut down to 6.1 days
- 47% of companies with automated invoice processing can take advantage of prompt pay discounts
The cost and time savings schools gain by automating the AP department are invaluable. Funds saved by eliminating manual processes can go to other areas, like improved equipment, educational development and better accommodations for students. AP staff will be able to submit payments on time, and in many cases be able to receive prompt pay discounts. Staff productivity will greatly improve, allowing for employees to stay on top of tasks and avoid falling behind. They will no longer have to waste countless hours searching for documents, hunting down signatures for approvals and manually keying in endless amounts of data. Automating processes also reducing the chance of errors occurring, again saving significant time and money. Not only is that improved productivity good for business, but it is also good for employee morale and overall satisfaction with their jobs—which can lead to higher employee retention and a better overall reputation for the school.
If your school is still processing invoices the old fashioned way, falling behind on payments and spending countless hours on approval processes, it’s time to make a change. Find out how PSIGEN’s solutions can help you streamline the process and make your AP department more productive and efficient. Learn more about our products or contact a sales representative today.