NEW YORK--(EON: Enhanced Online News)--According to Canon Business Process Services, a leading provider of managed services and technology, recent advancements in data capture and workflow automation technology provide new opportunities for accounts payable (AP) departments to cut costs and become more efficient. Canon points out why leveraging these opportunities is more important than ever.
According to a study by industry analyst Paystream Advisors1, 84 percent of invoices enter processing in formats that include paper, fax and email attachments. Converting these invoices into data formatted for enterprise management software used by organizations requires time, resources and higher costs. In Canon’s experience working with large enterprises, the average cost of manually processing an invoice can be approximately $20 versus $4 for automated processing. Canon points out that correcting errors and processing invoices in a timely manner are other significant challenges.
To help companies overcome these obstacles and improve their AP function, Canon recommends centralizing and digitizing invoice intake as one important way organizations can begin to effectively transition from manual, paper-based invoice processing to an automated methodology.
Centralizing intake enables processing activities to begin faster compared to receiving invoices from multiple locations. Digitizing invoices at intake replaces manual data entry and includes using optical character recognition (OCR) technology and implementing business rules that guide the workflow that takes place after scanning.
Centralizing and digitizing invoices can provide up to 70 percent of the benefits projected from a fully automated process. One example is a global cosmetics and beauty company that, after centralizing and digitizing incoming invoices, now completes invoice payment in an average of two days instead of its previous cycle of 45 days. Invoices are received in one location and usually available in the company’s electronic workflow within 24 hours. Vendors, previously concerned by the long payment cycle, are now more eager to service the company and more likely to offer discounts in exchange for faster payment.
Canon Business Process Services will provide another recommendation for automating manual, paper-based invoicing in an October press announcement. More details and additional insights on improving accounts payable processing are available in Canon’s white paper, Accounts Payable Services: A Strong Foundation for Sustained Benefits.
About Canon Business Process Services
Canon Business Process Services, Inc. is a leading provider of managed services and technology that enable organizations to improve operational efficiency while reducing risk and cost. Experts apply quality management principles and tools such as Six Sigma to advance performance to a higher level. The company offers services including BPO, imaging, records management, print, mail and eDiscovery, and is an IAOP Global Outsourcing 100 Leader in 2013 for the seventh consecutive year. Based in New York City, Canon Business Process Services is a wholly owned subsidiary of Canon U.S.A., Inc. Learn more at www.cbps.canon.com or follow us on Twitter.
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