For many small and medium-sized enterprises (SMEs), managing purchase invoices manually is a time-consuming and costly process. From data entry and verification to routing for approval, the traditional workflow drains both time and resources, often without businesses even realising it.

The True Cost of Manual Invoice Processing

The numbers tell a clear story:

• Cost per invoice: Manually processed invoices typically cost £8–£24 each in SMEs (gocomet.com, zenceipt.com, arionerp.com).
• Time per invoice: Data entry, verification, and routing take around 15 minutes per invoice (resolvepay.com).
• Invoice-cycle time: From receipt to approval to payment, manual processes take on average 8–10 days, with some SMEs reporting delays of up to 45 days (DeepKnit AI, gocomet.com, zenceipt.com).
• Labour impact: Accounts payable teams often spend 30% or more of their time entering invoices manually (Sage).
• Errors add costs: Manual entry errors, which occur in 1–5% of invoices, create additional work, duplicate payments, and strained supplier relationships (AccountingWEB, resolvepay.com).

What This Means for SMEs

Let’s take an example: an SME processing 500 invoices per month.

• At 15 minutes per invoice, that’s 125 labour hours per month spent just on processing invoices.
• At a rate of £20/hour, the labour cost is roughly £2,500 per month.
• Slow approval cycles of 8–10 days (or more) can also impact cash flow, cause missed early-payment discounts, and delay recognition in accounts.

Clearly, manual invoice processing isn’t just slow, it’s expensive.

The Benefits of Automation

Automating invoice processing directly into your ERP system can dramatically reduce costs and free up valuable time:

• Time savings: Reducing processing time from 15 minutes to 5 minutes per invoice frees ~83 hours per month for 500 invoices.
• Faster approvals: Invoice-cycle times drop from 8–10 days to 2–3 days, improving cash flow and supplier relationships (gep.com).
• Reduced errors: Automation minimises duplicate payments, data-entry mistakes, and follow-up work.
• Cost efficiency: Lower labour costs and fewer errors mean that automation often pays for itself within months.

Why ERP Integration Matters

By integrating invoice automation directly into your ERP:

• Data flows seamlessly from vendors into your system.
• Manual entry is eliminated.
• You gain real-time visibility into cash flow and liabilities.
• Teams can focus on higher-value tasks, rather than chasing approvals or correcting errors.

For SMEs in sectors like promotional products, print, retail, flooring, and food distribution, the efficiency gains are tangible and measurable. Automation is no longer a “nice-to-have,” it’s a strategic advantage.

Ready to See How Much Time and Money You Could Save?
If you’re tired of slow, costly manual invoice processing and want to see how an automated ERP workflow could transform your business, let’s talk. Contact us today to explore a solution tailored for your company and start freeing up hours, reducing errors, and improving cash flow.

📞 Get in touch with NW ERP Ltd now to find out how we can make this work for your business.