Bill paying habits among accounting and accounts payable professionals are far more advanced at home, where they use a number of electronic payment methods, than at work, where they overwhelmingly rely on paper checks.

1. Exploring the
Invoice-to-Pay Process
research brief
Sponsored by MineralTree | www.mineraltree.com

2. 2
©
2015
MineralTree,
all
rights
reserved
Overview
Accounting
technology
is
changing
at
a
rapid
pace
as
new
advancements
play
a
role
in
helping
organizations
operate
more
efficiently
and
securely.
One
of
the
most
drastic
areas
of
changes
is
the
methods
by
which
organizations
process
and
pay
invoices.
Automation
and
electronic
payments
are
beginning
to
replace
the
process
of
writing
paper
checks,
physically
passing
them
around
for
approval
and
signatures,
and
mailing
them
to
billers.
The
objective
of
this
research
is
to
uncover
attitudes
and
preferences
of
technology
usage
among
accounting
and
accounts
payable
(AP)
professionals,
with
a
particular
focus
on
invoice
processing
and
payment.
Between
November
5
–
11,
2015,
a
total
of
161
accounting
and
AP
professionals
completed
a
survey
via
SurveyMonkey,
an
online
survey
services
provider.
Key
Findings
Some
of
the
most
significant
findings
of
the
report
include:
• Bill
paying
habits
among
accounting
and
accounts
payable
professionals
are
far
more
advanced
at
home,
where
they
use
a
number
of
electronic
payment
methods,
than
at
work,
where
they
overwhelmingly
rely
on
paper
checks.
• The
lack
of
advanced
technology
at
work
is
cause
for
concern
as
many
organizations
demonstrate
security
and
cash
flow
challenges
with
their
current
processes.
Sensitive
information
such
as
bank
account
and
routing
numbers
are
often
being
stored
in
locations
that
lack
proper
security,
and
many
organizations
have
experienced
cash
flow
problems
due
to
unclear
settlement
windows.
• Organizations
are
putting
themselves
at
a
disadvantage
by
severely
underestimating
their
competitors’
adoption
of
AP
automation.
Respondents
largely
believe
that
their
organization
is
more
advanced,
or
will
implement
AP
automation
more
quickly
than
their
competition.

3. 3
©
2015
MineralTree,
all
rights
reserved
The
Cost
of
Processing
and
Paying
Most
accounting
professionals
do
not
know
how
much
it
costs
to
process
and
pay
an
invoice,
which
typically
averages
in
the
$10
to
$15
range,
according
to
data
from
the
Federal
Reserve.
Respondents
were
asked
if
they
knew
how
much
it
costs
their
organization
to
process
an
invoice
–
including
materials,
time,
and
processing
fees
–
and
75
percent
of
respondents
stated
that
they
did
not
know
that
cost.
Respondents
who
signified
they
did
not
know
the
cost
of
processing
and
paying
an
invoice
were
asked
to
provide
their
best
guess.
Most
people
underestimated
the
average
cost,
with
53
percent
guessing
below
the
$10
to
$15
range,
and
just
16
percent
guessing
within
that
range.
Yes
25%
No
75%
Do
you
know
how
much
it
costs
your
organizaYon
to
process
an
invoice?
(Including
materials,
Yme,
processing
fees,
etc.)

4. 4
©
2015
MineralTree,
all
rights
reserved
Respondents
who
said
they
knew
the
cost
of
processing
and
paying
an
invoice
at
their
organization
were
asked
to
state
that
cost.
In
general,
there
was
not
much
variation
between
those
who
said
they
knew
the
cost
and
those
who
did
not
know.
Fifty
percent
of
respondents
who
said
they
knew
the
cost
of
processing
payments
at
their
organization
said
it
was
below
the
$10
to
$15
range,
while
22
percent
stated
it
was
within
that
range.
In
total,
20
percent
of
all
respondents
gave
an
answer
within
the
$10-­‐$15
range
when
either
stating
the
cost
of
processing
and
paying
an
invoice,
or
providing
their
best
guess.
50%
16.60%
33.30%
How
much
does
it
cost
to
process
an
invoice?
(Including
materials,
Yme,
processing
fees,
etc.)
<$10
$10-­‐15
>$15
52%
22%
26%
What’s
your
best
guess
on
how
much
it
costs
to
process
a
single
invoice?
(Including
materials,
Yme,
processing
fees,
etc.)
<$10
$10-­‐15
>$15

5. 5
©
2015
MineralTree,
all
rights
reserved
Payment
Methods
Paper-­‐check
based
payments
are
by
far
the
most
popular
method
used
within
organizations,
with
81
percent
of
respondents
saying
that
checks
are
used
frequently
(73.75
percent)
or
exclusively
(7.5
percent).
Electronic
payment
methods,
such
as
credit
cards,
ACH,
and
EFT
see
moderate
use.
Credit
cards
are
the
second
most
popular
method
of
payment,
with
49
percent
of
respondents
using
them
frequently
and
31
percent
using
them
occasionally.
ACH
and
EFT
are
the
next
most
popular
forms
of
payment,
being
used
frequently
by
42
percent
and
33
percent
of
respondents,
respectively.
Organizations
almost
never
use
virtual
cards
or
debit
cards
to
pay
invoices,
presenting
a
large
opportunity
to
educate
accounting
professionals
about
when
and
why
they
might
be
useful.
Sixty
eight
percent
said
they
never
use
debit
cards
and
85
percent
said
they
never
use
virtual
cards.
Respondents
were
asked
how
frequently
they
use
different
payment
options
in
their
personal
lives.
In
stark
contrast
to
their
professional
lives
where
paper
checks
are
used
frequently,
more
than
half
said
they
are
rarely
(48
percent)
or
never
(7
percent)
used
when
handling
personal
finances.
Only
23
percent
said
they
use
paper
checks
occasionally.
Credit
and
debit
cards
are
the
most
frequent
form
of
payment
for
accounting
and
AP
professionals
to
use
in
their
personal
lives,
with
80
percent
saying
they
use
cards
frequently
(50
percent)
or
exclusively
(30
percent).
Online
bill
pay
through
a
bank
or
a
biller’s
website
is
somewhat
popular,
getting
frequent
use
from
34
percent
and
27
percent
of
respondents,
respectively.
Online
bill
pay
through
a
third
party
service
(such
as
Mint
Bills)
is
not
popular
at
all
among
accounting
and
AP
professionals.
Seventy
five
percent
of
respondents
said
they
never
use
such
services.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Check
Credit
Card
Debit
Card
ACH
EFT
Virtual
Cards
Please
indicate
how
frequently
your
organizaCon
uses
the
following
payment
methods.
Not
Sure
Never
Rarely
Occasionally
Frequently
Exclusively

6. 6
©
2015
MineralTree,
all
rights
reserved
Nearly
a
quarter
(24
percent)
of
companies
have
experienced
cash
flow
problems
because
of
unclear
settlement
windows
with
the
payment
methods
they
use.
Eleven
percent
of
respondents
said
they
experience
these
problems
occasionally,
while
13
percent
said
these
challenges
occur
infrequently.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Paper
check
Credit
or
debit
card
AutomaYc
withdrawal
from
bank
Online
bill
pay
through
my
bank
Online
bill
pay
directly
through
the
biller’s
web
site
Online
bill
pay
through
a
third-­‐
party
service
(ex.
Mint
Bills)
Please
indicate
how
frequently
you
use
each
of
the
following
methods
to
pay
bills
in
your
personal
life.
Never
Rarely
Occasionally
Frequently
Almost
exclusively
Exclusively
No
70%
I
don’t
know
6%
Yes,
infrequently
13%
Yes,
occasionally
11%
Other
24%
Has
your
company
experienced
cash
flow
problems
because
of
unclear
sehlement
windows?

7. 7
©
2015
MineralTree,
all
rights
reserved
Security
A
large
portion
of
respondents
who
pay
invoices
electronically
(via
ACH
or
EFT)
store
the
bank
account
numbers
of
their
billers
in
places
that
likely
lack
proper
security.
Seventeen
percent
said
they
store
this
sensitive
information
in
a
word
processing
document
or
a
spreadsheet,
and
11
percent
weren’t
sure
where
it
was
stored.
Forty
five
percent
of
respondents
said
they
store
this
information
in
a
banking
application,
38
percent
said
accounting
application,
and
12
percent
said
another
application
specifically
for
this
purpose.
Most
respondents
see
the
security
risks
in
moving
their
funds
to
an
intermediary
account
before
payments
are
made,
a
practice
that
occurs
in
some
popular
business
bill
pay
solutions.
Seventy
one
percent
of
respondents
said
they
are
not
open
to
using
a
payment
solution
that
requires
funds
to
be
transferred
to
an
intermediary
account
before
a
payment
is
executed
on
their
behalf.
17.4%
37.9%
44.7%
11.8%
8.7%
5.6%
10.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Word
processing
document
or
spreadsheet
AccounYng
applicaYon
Banking
applicaYon
Another
applicaYon
specifically
for
this
purpose
Database
All
different
places
I’m
not
sure
If
your
organizaYon
uses
ACH
or
EFT,
where
do
you
store
the
payment
informaYon
(such
as
account
and
rouYng
numbers)
for
the
counter-­‐parYes
you’re
paying?
Select
all
the
apply.

8. 8
©
2015
MineralTree,
all
rights
reserved
The
Pace
of
Technology
Adoption
Many
respondents
(20
percent)
said
that
they
have
already
transitioned
to
a
paperless
accounts
payable
and
payment
automation
solution.
Among
those
who
have
not
yet
transitioned,
49
percent
say
they
will
do
so
in
less
than
a
year
(19
percent)
or
between
one
and
two
years
(30
percent).
The
15
percent
of
respondents
who
said
their
organization
would
not
implement
paperless
accounts
payable
solutions
were
asked
to
provide
a
reason
why.
Common
answers
included,
“too
expensive,”
“no
budget,”
or
their
organization
is
“too
small.”
Yes
29%
No
71%
Would
you
be
open
to
using
payment
soluYons
from
a
company
that
required
funds
to
be
transferred
from
your
financial
accounts
to
its
own
accounts
before
finally
execuYng
a
payment
on
your
behalf?
19.9%
19.3%
29.8%
10.6%
3.1%
1.9%
15.5%
We
already
have
Less
than
a
year
1-­‐2
years
3-­‐4
years
5-­‐6
years
7+
years
We
won't
make
any
changes
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
When
will
your
company
transiYon
to
paperless
accounts
payable
and
payment
automaYon
soluYons?

9. 9
©
2015
MineralTree,
all
rights
reserved
Respondents
were
asked
when
they
thought
their
peers
or
competitors
would
implement
paperless
accounts
payable
and
payment
automation
technology.
In
general,
people
exhibited
a
false
sense
that
their
organization
is
more
advanced
than
their
competition,
and
they
believe
that
it
will
take
their
competitors
longer
to
implement
this
type
of
technology.
Nearly
half
(45
percent)
of
respondents
believe
it
would
take
their
competitors
three
years
or
more
to
implement
paperless
AP
and
payment
technology,
in
stark
contrast
to
the
15
percent
who
said
it
would
take
their
organization
that
long.
In
addition,
only
15
percent
of
respondents
thought
their
competitors
had
already
made
the
transition,
compared
to
20
percent
who
stated
that
they
already
had.
When
segmented
by
the
type
of
accounting
/
ERP
system
they
use,
organizations
using
Microsoft
Dynamics
GP
are
much
slower
to
adopt
paperless
AP
than
others.
Only
11
percent
of
Microsoft
Dynamics
users
said
they
had
already
adopted
paperless
AP,
compared
to
19
percent
of
NetSuite
users,
25
percent
of
QuickBooks
users,
and
30
percent
of
Intacct
users.
Integrating
with
Accounting
/
ERP
Systems
&
Banks
A
significant
majority
of
respondents
realize
the
value
in
having
their
bill
pay
solution
integrate
with
their
accounting
/
ERP
system
and
their
bank.
Ninety
three
percent
of
respondents
believe
it
is
extremely
important
(72
percent)
or
important
(21
percent)
for
a
bill
pay
solution
to
synchronize
with
their
accounting
/
ERP
system.
14.9%
8.7%
28.0%
24.8%
9.9%
7.5%
6.2%
They
already
have
Less
than
a
year
1-­‐2
years
3-­‐4
years
5-­‐6
years
7+
years
I
don’t
think
they’ll
make
any
changes
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
When
do
you
think
most
of
your
company’s
peers
or
compeYtors
will
transiYon
to
paperless
bill
pay?

10. 10
©
2015
MineralTree,
all
rights
reserved
Similarly,
89
percent
of
respondents
believe
it
is
extremely
important
(58
percent)
or
important
(31
percent)
for
a
bill
pay
solution
to
synchronize
with
their
bank.
When
segmented
by
the
type
of
accounting
/
ERP
system
they
use,
fewer
QuickBooks
users
saw
the
importance
of
having
a
bill
pay
solution
integrate
with
their
accounting
/
ERP
system.
Only
62
percent
of
QuickBooks
users
said
it
was
extremely
important,
compared
to
70
percent
of
Intacct
users,
75
percent
of
Microsoft
Dynamics
users,
and
85
percent
of
NetSuite
users.
Not
important
7%
Important
21%
Extremely
important
72%
How
important
is
it
for
a
bill
pay
soluYon
to
synchronize
with
your
accounYng
/
ERP
system?
Not
important
11%
Important
31%
Extremely
important
58%
How
important
is
it
for
a
bill
pay
soluYon
to
synchronize
with
your
bank?

11. 11
©
2015
MineralTree,
all
rights
reserved
More
users
of
Microsoft
Dynamics
saw
the
importance
of
having
a
bill
pay
solution
integrate
with
their
bank,
when
compared
to
users
of
other
systems.
Sixty
eight
percent
of
Microsoft
Dynamics
users
said
it
was
extremely
important,
compared
to
50
percent
of
Intacct
users,
56
percent
of
NetSuite
users,
and
57
percent
QuickBooks
users.
People
in
the
Process
More
than
half
of
all
respondents
(59
percent)
reported
that
invoices
“touch”
2
to
3
people
while
being
processed
within
their
organization.
One
quarter
of
organizations
require
4
to
5
people
to
handle
each
invoice.
Unsurprisingly,
the
inefficiencies
of
manual
AP
are
compounded
at
organizations
that
process
a
higher
volume
of
invoices.
Organizations
that
process
more
invoices
tend
to
require
more
people
involved
in
the
process
as
well.
At
organizations
that
process
more
than
500
invoices
per
month,
42
percent
said
2-­‐3
people
touch
each
invoice
and
51
percent
said
the
process
includes
4-­‐5
people.
Saving
Time
Accounting
professionals
believe
that
automating
bill
pay
will
give
them
hours
back
in
their
day
–
time
that
could
be
spent
on
more
strategic
tasks.
More
than
a
quarter
of
respondents
(28
percent)
said
that
an
automated
AP
solution
would
save
them
an
entire
week’s
worth
of
work
every
year.
11%
59%
25%
4%
0%
1%
On
average,
how
many
people
“touch”
an
invoice
at
your
organizaYon
from
the
Yme
it’s
received
through
being
processed,
approved
and
paid?
1
2
-­‐
3
4
-­‐
5
6
-­‐
7
8
-­‐
9
10+

12. 12
©
2015
MineralTree,
all
rights
reserved
Respondent
Profile
Between
November
5
–
11,
2015,
a
total
of
161
respondents
completed
the
survey
via
SurveyMonkey,
an
online
survey
services
provider.
All
respondents
signified
that
they
either
handle
or
oversee
a
portion
of
the
accounts
payable
process,
and
a
wide
majority
(89
percent)
said
they
do
so
within
a
company
or
non-­‐profit
organization.
Eleven
percent
said
they
worked
at
an
accounting
firm
or
practice.
48%
28%
9%
8%
1%
4%
2%
If
your
system
automaYcally
captured
invoices,
routed
them
for
electronic
approval
from
the
proper
people
and
departments,
reconciled
with
your
accounYng/ERP
system
and
bank,
and
executed
the
payments,
how
much
Yme
do
you
think
that
would
save?
A
few
hours
Enough
take
an
extra
week
of
vacaYon
Enough
to
take
an
extra
two
week
of
vacaYon
Enough
to
take
a
month
off
Enough
to
take
a
few
months
off
Enough
to
work
a
half
day,
every
day
I’d
barely
have
to
show
up
for
work

13. 13
©
2015
MineralTree,
all
rights
reserved
Respondents
were
asked
to
identify
the
following
AP
and
accounting
products
in
use
at
their
organizations.
QuickBooks
was
by
far
the
most
used
tool.
AccounYng
firm/
pracYce
11%
Company
or
non-­‐
profit
89%
What
best
describes
your
employer?
0.6%
4.3%
6.2%
17.4%
13.0%
16.8%
37.9%
1.9%
26.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Please
select
any
of
the
following
technology
products
that
are
in
use
at
your
organizaYon.

14. 14
©
2015
MineralTree,
all
rights
reserved
Respondents
were
fairly
balanced
among
companies
of
different
sizes,
based
upon
the
volume
of
invoices
they
pay
every
month.
Respondents
were
asked
to
provide
the
dollar
amount
of
the
average
invoice
that
their
organization
pays.
Once
again,
survey
respondents
represented
a
fairly
evenly
dispersed
set
of
organizations
based
on
the
size
of
their
invoices.
The
average
amount
was
$4,681,
and
the
median
amount
was
$1,500.
Respondents
represented
a
diverse
age
group,
with
most
(81
percent)
falling
between
the
ages
of
30
and
60.
3.7%
20.5%
14.3%
13.7%
21.1%
26.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Less
than
10
10-­‐49
50-­‐99
100-­‐199
200-­‐499
500+
How
many
invoices
does
your
organizaYon
pay
every
month?
17.39%
15.53%
21.12%
11.80%
4.97%
2.48%
11.80%
14.91%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
<$499
$500
-­‐
999
$1000
-­‐
1999
$2000
-­‐
2999
$3000
-­‐
3999
$4000
-­‐
4999
$5000
-­‐
9999
>$10000
What's
the
size
(dollar
amount)
of
the
average
invoice
that
your
organizaYon
pays?

15. 15
©
2015
MineralTree,
all
rights
reserved
About
MineralTree
MineralTree
provides
the
easiest
to
use
Accounts
Payable
(AP)
and
Payment
Automation
solutions
for
finance
professionals
at
growing
organizations.
MineralTree
streamlines
AP,
giving
customers
unparalleled
visibility
and
significant
cost
savings
in
an
affordable,
integrated
platform
that
is
guaranteed
secure.
For
more
information
visit
www.mineraltree.com.
0.6%
6.2%
24.8%
26.7%
29.2%
11.8%
0.6%
How
old
are
you?
19
or
younger
20-­‐29
30-­‐39
40-­‐49
50-­‐59
60-­‐69
70
or
older