Accounts payable

Invoice processing time decreases post-pandemic as benefits of automation materialize

Compared to 2020, automated invoice cycles without a PO are 7% faster and invoices with a PO were 4% faster in 2021, according to an analysis of $180 billion global invoices

STOCKHOLM, April 29, 2022 /PRNewswire/ — Automated invoice processing cycle time has decreased since 2020 as remote working has transformed accounts payable departments across the world, with manual processes and approvals quickly replaced by digital tools. and a high degree of automation.

According to a report from Medius, a leading accounts payable provider, invoice processing times have decreased for non-PO and PO invoices. Compared to 2020, billing cycles without a PO decreased by 7%, from 7.2 days to 6.6, while billing cycles with a PO decreased by 4%, from 6, 55 to 6.29 days. This is faster than the average invoice processing time, which according to Ardent e-Payables report is 10.3 days. [1].

Most organizations have improved their AP process performance, however, the gap between average and best performance is surprisingly large. Top performers achieved a 1-day purchase order invoice processing time, compared to the average customer, with a 6-day cycle. For optimal performance, AP teams should identify areas of improvement with their solution provider, data provider, and vendors. The trend is universal across all geographies including the UK, US and Swedenand industries, such as construction, e-commerce and financial services.

The report also shows progress in contactless invoicing, the process by which invoices are captured and processed without user intervention. Contactless billing has grown in recent years thanks to machine learning technology and improved reporting of contactless trust levels. However, data shows that since 2020, the average rate is down 2%, while for top performers the rate is up 1%, possibly indicating a lag in performance of newcomers to the market. access point automation.

The data comes from the Medius 2022 Accounts Payable Automation Benchmark Report which provides new insights to accounts payable professionals, to give them the knowledge and information they need to run a top-notch accounting service. The report took data from thousands of organizations and millions of invoices to calculate KPI averages for invoices. The report walks readers through automation processes, explains how to measure performance, and provides tactics for improving efficiency.

Speaking on the conclusions, Jim LucierCEO of Medius comments: “The pandemic has forced companies to innovate, automate and streamline their back-office processes. The result for the Accounts Payable team is a faster billing cycle. A faster process through automation means business owners can make better decisions about their finances. .

But it’s not just a question of speed. Businesses need to ensure that a faster billing cycle doesn’t compromise quality. With the right tools, teams can speed up and use the latest technologies to detect and prevent fraud too. Our analysis and report now provides AP professionals with a benchmark on what good looks like, and then how to get there.”

In the report, Medius highlights top industry players including Reily Foods Company. The company replaced a manual invoicing process using a legacy document management system and spreadsheets with Medius AP Automation to speed invoice processing across its North American operations.

Paul Fournetaccounts payable supervisor, Reily Foodstotal invoice processing cycle time of 3.33 days: “We have nearly eliminated all manual labor, freeing up AP team members to spend their time on more strategic, value-driven tasks, including tracking KPIs and developing policies and procedures for continuous improvement. Plus, with Medius AP Automation, we have visibility like you wouldn’t imagine.”

More information and full 2022 Accounts Payable Automation Benchmark Report can be found here.

[1] Ardent Partners: The State of Electronic Payments 2021

Methodology

Medius’ customer base includes organizations in all regions of the world, operating in a variety of industries and processing invoice volumes ranging from 10,000 to over one million supplier invoices per year. The average performance benchmark takes into account all companies in the database while the best-in-class benchmark represents an average of the top 10% of organizations.

CONTACT:

Dan BirdFight or Flight for Medius
[email protected] +44 7885 670798 / [email protected] +44 330 133 0985

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SOURCE Middle finger