2nd Annual Research Report – Exploring The Invoice-to-Pay Process
The financial technology landscape is growing at an exceptional pace. New technologies are transforming Accounts Payable departments from cost-centers to strategic partners.
For the second consecutive year, MineralTree conducted a survey to uncover attitudes and preferences of technology usage among accounting and AP professionals. In this year’s survey there were some additional questions surrounding electronic payment methods, to measure how the Accounts Payable and payment process has evolved over the past year.
Some of the most significant findings in this year’s research are:
- Compared with industry averages, respondents greatly under-estimated their costs for processing an invoice.
- An alarming number of ‘touches’ are involved in processing an invoice. This greatly increases error rates, time it takes for a vendor to receive a payment, and the odds of an invoice being lost in the process.
- Check payments are still the most popular payment method despite availability of better alternatives.
- Organizations are missing out on valuable rebate and cash back opportunities by not using corporate or virtual cards more frequently for vendor payments.
- For respondents who do use corporate or virtual cards, less than five percent of vendors are paid by card.
- Accounting and Accounts Payable professionals demand a complete solution that integrates with both their accounting system and bank account, and offers robust security features.
- Respondents were unclear on the timeline in which companies will adopt AP Automation.
- The number of companies who have a paperless AP department in place has decreased from 19.9 to 14.2 percent.
- More than half of the respondents pay 200 or more invoices every month; the average amount of those invoices is $2,000.