Late fees are an easily avoidable expense. So why do so many businesses pay them? Missing invoices are usually the culprit.
Where Do Missing Invoices Go?
Like the match to your favorite pair of socks that’s disappeared in the laundry cycle, it can be hard to pinpoint exactly where in the payment process invoices go missing. Common hangups plaguing accounts payable (AP) departments include:
Manual Invoice Processing
Many companies still rely on manual invoice processing, which is prone to errors and can lead to misplacing invoices.
Some businesses still receive invoices in paper format, which can be easily lost or damaged.
Lack of Visibility
In many cases, companies lack visibility into their invoice processes, which makes it difficult to track down missing invoices.
Poor communication between departments can lead to missing invoices. For example, if the AP department does not receive invoices from the purchasing department, the invoices may be lost or forgotten.
The Consequences of Missing Invoices
In addition to paying late fees, losing invoices can have significant ramifications, including the following:
Late fees often compound the longer a lost invoice goes unpaid.
Damage to Relationships
Missing invoices can damage relationships with vendors, which can make it difficult to place future orders. Your vendor will get frustrated quickly if you’re frequently calling to inquire about invoice status or asking them to re-send. Some vendors may get fed up if your payments are often late and may even choose to cease doing business with your company.
When invoices are missing, the AP department has to spend time tracking them down, which can lead to an increased workload and stress. This may have a negative impact on talent retention and hiring – who wants to be part of a team using outdated manual processes?
Stop Losing Invoices with AP Automation
Luckily, there are solutions. Businesses that use AvidXchange to automate their end-to-end payables process can now create a missing invoice report as part of AvidAnalytics. This easily lets you see the invoices that were expected but never received.
AvidAnalytics’ missing invoice feature works by automatically predicting the billing cycle of recurring invoices using a classification model that looks at past invoices from your suppliers. The Time Sensitive Invoice Analytics report highlights invoices that were expected but not received.
Late fees don’t have to be a necessary evil of doing business. AvidAnalytics helps you avoid late fees and save on these superfluous costs.
Click below to learn more about AvidAnalytics or schedule a demo.