What is the cost of processing a Purchase Invoice?


According to research and analysis group, Gartner, typically the cost of processing an invoice in the UK averages between £4 and £25, and in some cases even up to £50, per individual invoice.

It isn’t easy to obtain this data, and around one third of all companies are not able to determine the amount of this cost, according to a survey last year.

The data from a report last year shows that the cost of invoice processing using procedures without automation tools can be up to 20 times higher than processes which are highly automated.

Businesses of all sizes are losing money and customer reputation due to slow and erroneous payment and collection processes, and yet ACCOUNTS PAYABLE staff are still hampered in their efforts by manual processes and poor access to all of the related documents.

Moving to paper-less systems for Accounts Payable processes can make rapid and substantial cost savings, along with management benefits of improved cash management, increased visibility and simpler approval and matching.

When AP and AR functions are automated, this translates to:

  • improved efficiency in invoice management (i.e. document imaging, data extraction, electronic approval workflows),
  • reduction in external/internal inquiries (i.e. PO matching, electronic workflows), and
  • improved reconciliation and ledger management (i.e. automated PO matching, cash flow forecasting).

These results are, obviously, persuading an increasing number of companies of all sizes to talk to Digital Mailroom Ltd about the possibilities of automation.

What is it costing your business?

Real Case Study Results

The two examples below are based on real case studies of the impact, before and after for two Digital Mailroom customers.

The first example is an organisation that processes on average 750 invoices (1000 invoice pages) per month and had 1.5 full time equivalent staff members processing purchase invoices.

The second example is from a larger organisation that processes around 3000 (4000 invoice pages) purchase invoices on average each month and had 6 full time staff processing purchase invoices.

Besides the significantly improved service delivery times you can see that the bottom line impact to be made from automating purchase invoice processing in organisations of all sizes is considerable.


Example 1: 750 invoices per month

Example 2: 3000 invoices per month.

Example 2: 3000 invoices per month.

For more information about how to approach the automation of Purchase Invoice Processing contact Digital Mailroom Ltd by email or call us on +44 (0) 845 604 6351

About Brett Parnham

Managing Director of Digital Mailroom
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