While companies are continuing to convert to electronic invoicing and automation, some are still resisting the transition, according to a recent study. The “2014 eInvoicing Benchmark Report” by PayStream Advisors stated that the reasoning for the hesitation is often businesses having the mistaken assumption that their existing processes are working.
According to the research, 25 percent of respondents said that they receive zero invoices electronically, while over half receive 50 percent or less of their invoices electronically.
While 40 percent surveyed companies believe their processes are working well, they also admitted that manual routing and lengthy approval cycles are resulting in late payments and lost discounts.
“Ultimately, the research shows that when invoices are processed efficiently and timely, money is saved throughout the company with captured discounts, reduced processing fees and shipping costs, and a lower margin of error,” PayStream explained in the report.
The study also said that the top two obstacles that prevent automated invoicing are internal change management – cited by 61.8 of those surveyed – and a fear of supplier resistance – cited by 56.9 percent of respondents.
Rob DeVincent, Vice President of Product Development at Corcentric, which was one of the companies featured in the report, explained that the study shows that companies are not always correct in what they think is a strong system.
“When these same companies report on what they are looking to improve, it’s clear that e-invoicing and AP automation are the solutions they’re looking for,” DeVincent said in a company statement.
“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.