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Cost to Process an Invoice: $13
Manual processing of a single invoice costs over $13 and takes three weeks, according to recent research by Ardent Partners.
Here are some manual invoice processing steps to consider when thinking about how to determine costs at your company:
Printing emailed invoices
Entering data into the AP system
Reviewing invoice in ERP
Matching invoice details to approved POs
Coding of non-PO invoices to the general ledger
Chasing down approvals
Paper invoice sent to storage
Cost of a Check Payment: up to $12
Did you know that 40% of B2B payments are still being made by check today?
The cost estimates of making a check payment vary, but $4 to $12 per check is an often-cited range by many industry experts. Below are cost components of paying suppliers by check.
Manual Check Printing and Mailing:
Chasing down approvals
Creating check print file
Obtaining check signature
Create and transmit positive pay file
Cost to reissue a lost check
The Financial Impact of Automating AP
Transforming AP certainly makes a compelling business case from a financial perspective. When considering possible financial gains, don’t overlook the costs of manual invoice and payment processing. AP staff time spent keying (and re-keying) information and following up on approvals can certainly be better spend on more value-add activities. Not to mention the cost of printing and mailing checks, positive pay bank fees, and the burden of escheatment tracking. Any fraud losses resulting from stolen checks would have incremental and likely severe financial implications too.
Consider not only the hard cost savings you would realize, but also the positive impacts from eliminating late payment fees, capturing more early payment discounts, mitigating fraud risk, and earning cash-back rebates when you pay your vendors by ACH and virtual card.
How Paymode-X Can Help
Paymode-X is the largest B2B electronic payment network with over $400 billion in payments processed annually with zero fraud to over 550,000 suppliers. By processing and paying your supplier invoices digitally using Paymode-X, you’ll decrease manual tasks and paperwork, reduce the unnecessary risk of fraud, increase visibility to cash, and create rebate opportunities, which boosts cash flow.
Learn more about Paymode-X and how the majority of customers reduce their AP processing costs by over 50%.
40% of B2B payments are still being made by check today.
This eBook covers the top 10 things that make Paymode-X different from other solutions.
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