How Much is Paper-based AP Costing You?
Guest post from AvidXchange
How much are paper-based AP processes REALLY costing the construction industry?
It’s no secret that the construction industry is paper-intensive although it’s getting harder and harder to fathom why. Accounts Payable is especially an area of operations that can become more efficient and cost-effective with the use of automation. In Ardent Partners’ State of ePayables 2015 Report they cited that Best-in-Class organizations are paying on average $2.94 to process an invoice by utilizing automation, while other companies are paying on average $15.96 to process an invoice in a paper-based environment.
On the payments side, the Association of Financial Professionals recently cited that over 50% of business-to-business payments are still made by paper check. Processing a paper check can cost upwards of $7.00.* Best-in-class solutions payment automation solutions can process the same payment for less than a dollar. In addition, electronic methods, such as Virtual Credit Card (Merchant Accounts), create the opportunity for companies to not only save money, but actually make money, on payments through rebates.
While it’s difficult to imagine how paper can be so persistent, one of the main reasons why payments remain in mailboxes is vendor adoption. It takes time and energy to reach out to vendors to obtain their payment information and pose new payment options to them, which is very difficult to do with your existing employees that have full time jobs. However, AvidXchange has an entire service team that is dedicated to vendor conversion. What are the results? 45% adoption of electronic payments.
In addition to the monetary savings, automation adds significant value to accounts payable, including real-time visibility into performance and financial status, increased accuracy, and better compliance with tax laws and industry regulations. AvidXchange has assisted companies transition from paper-based to automated processes for the last 15 years and has a complete solution that facilitates an entirely automated process from invoice receipt through vendor payment. AvidXchange is integrated to Sage 100 Contractor and Sage 300 CRE and offers a blend of solutions to meet companies where they are on their journey toward a paperless AP process.
It isn’t hard to do the math on how much automation would save your company based on the industry stats provided, but if you’d like to see exactly how much your company could save, check out AvidXchange’s ROI Calculator.
*Aberdeen Research ePayables Report
The Top 5 Benefits from Going to Paperless AP:
- Eliminate the signing, stuffing, and mailing of paper checks
- Reduce operating costs of 60% or more
- Improve control over your payment process
- Gain 24/7 visibility into payment status and approvals
- Have dedicated services teams to do the manual work you don’t want to do
Learn how your company can go paperless to increase efficiency! Call us today at 480.423.8300 to schedule a demo, or click below!