8 Places You Are Losing Time And Money In Accounts Payable
No one likes to lose money. One time I was at the grocery store and did the self checkout (I love those things) and got $20 cash back, but was in such a hurry I left the money. I really hated losing that $20, but I think I hated my own stupidity event more.
When you leave $20 at the grocery store, you know that you have lost $20 or better yet, if there is a part of your business that is bleeding cash, you know you are losing money. What about those places you are losing money and you don’t even know you are losing money… that the worst.
1st Place – Your Process – With paper your approval process cost on average $22 per invoice with AP Automation the average approval process is $9.
2nd Place – Data Entry – For every 1500 monthly invoices that is processed it cost your organization 40 hours per week to enter into the accounting system.
3rd Place – Phones Ringing – When a vendor calls to ask about an invoice it cost your organization $7.95 per call to research the status.
4th Place – Vendor Discounts – For every 5,000 invoices processed each month the average available discount is $15,000.
5th Place – Credit Card Payments – Payments made to vendors on a credit card can yield an additional $1800 per quarter for every 3,000 payments.
6th Place – Filing Cabinets – It cost an organization $285 per year to physically maintain a filing cabinet.
7th Place – Employees Time – On average for an organization that processes 5,000 invoice per month they will be able to free up 8,500 hours per year.
8th Place – Paper Cuts – You will be able to save 300 Band-Aids per year when the paper is gone… I don’t know if that’s true.. but think you won’t have to hear the complaints.
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