Weak Finance Processes Hitting Global Business Profits
New global study reveals Accounts Payable teams are missing early payment discounts, incurring late payment fees and reneging on payment altogether – largely due to human error.
Weaknesses in finance processes are resulting in additional costs for businesses and even causing invoices to go wholly unpaid, according to the new Lost in Transaction report by Basware. Speaking to 550 Accounts Payable (AP) departments around the world the report discovered that invoice and cross-departmental errors have caused 35% to leave suppliers unpaid, and 24% know that their own invoices have not been settled for the same reasons. Over a quarter (26%) of participating AP departments have even paid the wrong supplier when processing an invoice.
The report highlights the ‘distance left to run’ in achieving this vision of a modern and efficient AP department. 44% of respondents believe that e-invoices will fully replace manual paper-based invoice handling in the next 5 years. With so many still relying on manual, paper-based processes, much work needs to be done.