The hospitality industry is seeing a trend that multi-unit operators or management companies are expanding automation of the AP process. BirchStreet focuses on the entire procure-to-pay automation process, but within this process, automating invoicing (eInvoicing) is rapidly changing and growing.
The main reasons for companies to automate invoicing stem from the need to save money and reduce the time associated with data entry. By reducing data entry, businesses improve accuracy and gain visibility to and control over their operations. Staff can be repurposed to focus on analytics with the time saved on the reduction of manual data entry. This leads to a more strategic business process where companies move data faster and speed payments, which may result in cost savings due to rebates and incentive discounts from suppliers. Automation will provide many positive results to hotel finance and operations.
In the hospitality industry, a management company with 10 locations sees between 8,000 and 12,000 invoices a month. Think about that for a moment. As an industry with 55,000 hotels in the US, more than 6.5 billion invoices are being processed every year, the overwhelming majority of them come in an envelope with a stamp through the United States Postal Service. How long does it take to open an envelope, match it up to the PO and receiving document and input data? If five minutes sounds reasonable, that means that 550,000,000 working hours are spent in a manual process that can easily be automated. That is unfathomable to me.
eInvoicing is here to stay for obvious reasons. When eInvoicing is incorporated into the procure-to-pay process, money and time are saved and accuracy is improved. Are you ready to learn more?
Our conclusion, based on the given assumptions is that five hotels hotel using eInvoicing will benefit and add net value to their business. The greater amount of hotels and/or invoices being processed, the greater the net value. Is it time to do the math?
What would you do with more extra time and money?
For more information, please contact firstname.lastname@example.org to learn how eInvoicing and procure-to-pay solutions can help your business.