Half of UK businesses still on manual invoicing

Data management company Formscan says that 48% of companies it surveyed are still inputting and processing invoices manually, though half have automated their accounts receivable processes. According to Formscan, those without an automated accounts receivable and accounts payable system may be missing out on cost savings of up to 80% on the cost of invoice processing.

The most striking aspect of the survey is the emergence of mid-market companies as leaders in the automation of invoicing systems. Companies with 250 to 1,000 employees are ahead of larger companies in accounts payable and accounts receivable automation, the survey suggests. This could be because the mid-market will often comprise businesses that are under considerable pressure from larger, weightier competitors and which therefore urgently need to streamline costs, but are small enough to implement such changes without massive overheads or business interruption.

That said, it is not essential to implement a system to automate these processes from end to end, as savings can be found from introducing elements of automation to a manual process.

“There is no need to implement total e-invoicing – hybrid systems can introduce high levels of automation into AP/AR which deliver substantial cost savings and far greater transparency of financial reporting,” says Formscan MD Chris Haden. “With 90% of invoicing still performed through paper documents, hybrid solutions are also needed to manage the transition from paper to electronic documents over the coming decades.”