Articles
Automating Accounts Payable At BancTec
February 13, 2007
•Article: Accounts Payable
BancTec, a leading global provider of document and payment processing solutions, currently processes more than 100,000 invoices internally each year. As with most businesses, the majority of these invoices arrive in hard-copy format; according to Gartner, more than 80 percent of all invoices are printed on paper. Because handling invoices is so paper-intensive, it has traditionally been a manual process. A recent survey by the Institute of Management Administration (IOMA) attributes more than 96 percent of all invoice processing time to keying data from paper. According to the same survey by IOMA, 44 to 55 percent of invoices have anomalies, and 25 percent of invoices are paid late, often incurring penalty fees. "BancTec was encountering these inefficiencies as well - and we wanted to address that," said Jeff Cushman, senior vice president and chief financial officer for BancTec.
When BancTec decided to automate its AP function earlier this year, it took a close look at its existing processes. At the time, BancTec's AP department spent an average of 9.98 minutes processing each invoice - for a total of more than 16,000 hours annually. This accounted for the department's nine full-time employees - and significant inefficiencies.
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