Let’s assume you receive 1,000 invoices per month. Based on my experience working with a variety of higher education institutions, I’ve found a university handling that many invoices manually can expect to spend roughly $48,000 on labor in a year, factoring in employee salary and benefits and the time-intensive, manual processes of opening up documents, keying information into back-end systems, reviewing and routing. That’s $4 per invoice.
That cost only scales up if you process more invoices (which many colleges and universities do), or enlist more staff. In my colleague B.J. McFarland’s recent post, "Three-Way Matching: Getting the Accuracy without the Effort," he discusses the lack of invoicing verification/matching. That leads to additional costs associated with overpaid invoices, which is not even factored into this per-invoice cost.
But it doesn’t have to be this way.