Invoice processing is a vital function in accounting and bookkeeping. It is a part of the accounts payable function, wherein the company receives the supplier's invoice to verify the accuracy of the details. After accurate information is available on the invoice, they record it in the books. Before the due date arrives, it is essential to approve its authenticity by the accounts payable team. After approval, the accountants send the invoice for payment. Thus, this complex process ensures companies pay vendors on time and escape any issues or fraud due to manipulated invoice content. If companies struggle to tackle the challenges themselves, they can consider going forward with outsource invoice processingservices. 



Operating costs are an integral part of a company's finances. It impacts the profitability position. Firms need to calculate invoice processing costs (part of operating costs). The factors affecting these costs include the transactional volume, percentage of PO and non-PO invoices etc. Calculating invoice processing costs is essential to ensure no unnecessary outflow. It includes:

Pre and post time took for invoice processing

Reviewing invoices time

Time to analyze and correct errors, duplicate payments, etc

Shipping and storing physical invoice costs

Penalties or loss of discounts due to mismanagement or delayed payments

Labor hours spent on the function (opportunity costs)



Processing invoices through manual modes using paper is a costly task. Today, automation through accounts reconciliation software plays a significant role in bringing down such costs and enhancing the company's efficiency and effectiveness. Three factors that have a massive impact on driving invoice processing costs include:



Employing outdated, non-existent, or incomplete technology

The human cost of working, errors, additional time, opportunity costs of working in a core operation, etc

Violating compliance regulations risk and inadequate accounts payable controls



Outsource invoice processing provides professional and expert help to leverage technology and brings down company costs. 

Ways to lower invoice processing costs:

Going paperless is the most effective way to reduce duplication, manual, and other tasks risks. Automation offers an excellent way to enhance compliance, security, and accuracy. 

Implement practices to improve the spending visibility on invoice processing. It will educate the analyst on where the company spends the most and how to minimize it. 

Working manually by employing humans increases the risk of errors, time, and costs. Automation reduces the need to use many people to handle one task. 

Outsource invoice processing services is an effective way of reducing time, effort, and other hidden costs.