The latest news and insight into today's technology

 

New Research Finds 50 Percent of Businesses Are Missing Out on Automated Payment Processing Benefits

Industry Research from AIIM and ASG Software Solutions Reveals the Business Setbacks of Using Manual Versus Automated AP/AR Processing

Date & Location

  • Date: Wednesday, March 19, 2014
  • Location: NAPLES, Fla. USA

ASG Software Solutions today announced the findings of a new research report from AIIM that examines organizations’ accounts payable (AP) and accounts receivable (AR) practices, what issues and shortcomings have been experienced, and what ROI has been achieved. The ASG-sponsored survey, Automating AP/AR Financial Processes – User Feedback on the Real ROI, revealed that 50 percent of organizations still use paper-based payment processes, thus missing out on the efficiency, cash management and process visibility benefits granted by automated systems.

Of the 50 percent of companies still using paper-based processes, one-third use them for more than 25,000 invoices each month – an astounding number to handle manually. Not only is this costly and time-consuming, but the inability to monitor an invoice’s status leaves organizations vulnerable to human error, compliance violations, and damaged customer and vendor relationships. For AR departments, reduced write-offs associated with goodwill and bad debt can delay cash flow, evident by the 20 percent of respondents who claim they are losing 3 percent or more of invoice-able income due to issues including short payments, late payments, out-of-discount claims and tax disputes.

“A business simply cannot function without a payment system. And yet, they are thought of as an unavoidable overhead and are commonly one of the last business processes to be updated,” said Doug Miles, director of market intelligence for AIIM. “In addition to the efficiency, transparency and cost benefits it offers, an automated payment system meets the demands of today’s changing business environment, which include a rise in PDF invoices, thereby making it easier to remain ahead of the curve.”

Unlike other one-size-fits-all suites, ASG brings automation to payment systems with its fit-for-purpose AP and AR automation content management solutions, ASG-ViewDirect Suiteand ASG-Cypress Suite. The AIIM research shows that 50 percent of automated AP system users see a return on investment in nine months or less. In addition to a short payback period, organizations with automated AP/AR systems indicated better monitoring and transparency of invoice status, improved records keeping and reduced time spent on collection. It’s with these benefits in mind that forward-thinking businesses are evaluating the cost and time associated with traditional systems and turning toward automated payment processes achieved with fit-for-purpose solutions like ASG-ViewDirect and ASG-Cypress.

“In today’s competitive business landscape, not being able to collect payments from customers in a timely manner is detrimental to an organization’s vitality,” said Theresa Kollath, vice president of information management line of business, ASG Software Solutions. “With the median cost to process an invoice estimated at approximately eight dollars, an automated payment system is poised to deliver hundreds of thousands of dollars in savings per year, just on invoices alone! For companies that already have content management systems in place, integrating an AP/AR system is often that much easier, placing them well on their way to improved cash flow management and overall efficiency. And, with flexible fit-for-purpose solutions that can incorporate new forms of content as they are introduced, organizations feel confident that their payment processing solution will adapt as their business grows. ”

Additional Findings:

After the adoption of an AP solution, the reduction in invoice processing costs was reported at an average of 29.2 percent

Nearly half of all AP implementations were completed in six months or less

41 percent of AR system users report a payback time of nine months or less

 

To view the “Automating Financial Processes – User Feedback on the Real ROI” report and research results, please visit: http://bit.ly/PuN5FC.