Manual data entry remains commonplace in industries that rely heavily on the processing of data and documents. This method of processing and sharing information has fallen far behind the curve in terms of efficiency and productivity in the modern business world. Data capture not only boosts productivity and efficiency, but excels in the retrieval of information where data entry would be inefficient or inapplicable. The following are some of the core benefits of implementing data capture in accounts payable, but can be easily applied any business.
Manual data entry is slow. According to the national average, manual data entry takes around 16.3 days to fully process and manually approve an invoice. For businesses that receive many invoices on a daily basis, this certainly adds up. Utilizing data capture solutions, such as direct connect scanners can vastly reduce the time it takes to fully process invoices. Switching to automated processing reduces the national average processing time from 16.3 days to 6.1 days. Similarly, this increases the average number of businesses that utilize early payment discounts from 16% to 47%.
Time is money. It should come as no surprise that the longer the processing takes, the more expensive it becomes. The national average cost to manually process an invoice reaches $22.75. When switching to an automated process, it shrinks down to $3.34. Furthermore, it’s easy to forget the opportunity cost involved as well. The time spent in data entry would be focusing on matters that require personal attention or creativity. While there are many variables that factor into these numbers, the results and return on investment are clear.
Errors are simply unavoidable. Errors, whether the handwriting is illegible or the clerk added one too many zeroes, can be costly in many ways. In healthcare this can lead to delayed treatment, in sales this can lead to a damaged reputation, and in the legal field compliance with regulatory and legislative requirements are crucial. Data capture systems make vital errors and mistakes easily identifiable. Automated data capture and document management can provide support to ensure all documents, and data are accurate and secure.