The True Cost of Processing an Invoice (and How to Reduce It)

Ask any AP lead what their biggest time sink is, and you’ll rarely hear them say “approvals” or “payments.” It’s the grunt work: entering invoice data, chasing down coding, scanning PDFs, fixing typos, chasing people for approvals. And it’s shockingly expensive.

‍

Across finance teams still processing invoices manually, the average cost per invoice lands around $15–$20. That’s not just paper and stamps. It’s the accumulated time spent by AP clerks, staff accountants, controllers, and even execs touching an invoice before it gets paid.

‍

But that’s just the start.

‍

You’re not just paying for labor — you’re paying for friction

Let’s run the numbers.

‍

A company processing 3,500 invoices per year at $18 per invoice (a conservative benchmark pulled from industry and internal Centime estimates) is spending $63,000 annually just to get those bills into their ERP. That doesn’t even include payment processing, which adds another $5 per payment if done manually, an extra $17,500 per year. All in, we’re talking $80K/year in raw cost for a function that should be nearly touchless.

‍

And that’s assuming no late payment fees, missed early-pay discounts, or duplicate payments — all of which compound quickly. Even a few missed 2% net-10 discounts per month could quietly cost you thousands.

‍

Now compare that to automated AP solutions, which bring invoice processing costs down to $2–$3 per invoice, largely by eliminating manual entry, routing, and corrections. The delta is staggering. Even at $3/invoice and $1/payment, that same company would spend less than $15K total per year on AP operations, which is a 5x–6x reduction in process costs.

‍

The hidden costs hit harder than the visible ones

Here’s what gets overlooked in every “invoice processing cost” stat: the interruption cost.

‍

Manual AP processes drag staff out of higher-value work. They break focus. They generate email loops, Slack pings, fire drills, and month-end scrambles. Each handoff, from invoice capture to coding to approval, introduces another chance for delay or error. And the more humans involved, the more approvals stall.

‍

The real cost isn’t just the invoice, but the overhead of pushing paper through the system. It’s the fact that your controller spends Friday afternoons following up on $700 invoices instead of closing the books or planning cash flow. It’s your CFO asking why you’re paying vendors late when you have cash on hand — and discovering the invoice was sitting in someone’s inbox for 11 days.

‍

What’s standing in the way?

In many mid-market firms, the roadblock isn’t budget — it’s inertia. AP processes haven’t changed in a decade because “they work.” But what worked at $5M in revenue doesn’t scale at $50M. The invoice volume jumps. The complexity multiplies. Manual AP stops being manageable and starts becoming a bottleneck.

‍

Many ERPs (NetSuite, Intacct, QuickBooks, Dynamics BC) weren’t built to handle nuanced AP workflows. They need help. And stitching together emails, spreadsheets, and shared drives isn’t a workaround — it’s a liability.

‍

So what actually reduces AP cost?

The answer isn’t throwing more people at the problem. It’s removing the people from the problem.

‍

That means:

Automated invoice capture (no more copy-paste or OCR band-aids)
Pre-coded invoice templates based on vendor or GL logic
Approval workflows that route themselves and escalate when delayed
Centralized audit trails for compliance and reconciliations
One-click sync to your ERP once an invoice is ready to post

‍

The best AP automation platforms compress your invoice lifecycle from days to hours, and eliminate most of the time spent in follow-up, triage, and error correction.

‍

The ROI is obvious — the delay is costing you more

If you're still manually processing invoices, you're not saving money — you're spending 5x more than you need to. You’re also bleeding time, missing insights, and introducing unnecessary risk.

‍

You don’t need a massive implementation project. You need a purpose-built solution that sits neatly between your invoices and your ERP, handles the hard stuff automatically, and gives you clean data with minimal effort.

‍

The AP team doesn’t need to scale. The system should.

‍

Ready to Cut AP Costs by 80%?

If you’re processing invoices manually, you’re already paying for automation — you’re just paying in wasted time, staff burnout, and bloated overhead. Centime replaces that with a single AP platform that does the heavy lifting for you.

‍

Book a short demo and see exactly how much time and money you can reclaim.

‍

[Book a Demo →]

Sign up for our newsletter
to get finance insights and cash planning tips delivered straight to your inbox twice per week.

**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.

^††2.75% Annual Percentage Yield (APY) as of 09/24/25. Deposit rate may adjust to current market rate and may change daily. Fees may reduce earnings.

*Centime is not a bank and is not authorized by any federal or state agency to engage directly in core banking activities.
‍
*All banking products and services available through Centime are provided by FNBO and are governed by the applicable agreements and related disclosures provided to you by FNBO. Member FDIC.
‍
‍*While Centime facilitates traditional banking activities (such as the acceptance of deposits or extensions of credit), these services are actually provided by our banking partner, FNBO.
‍
*Centime may provide support services to FNBO, as permitted by applicable law, to facilitate the delivery of its bank products and services.

**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network bank

The True Cost of Processing an Invoice (and How to Reduce It)

You may also like

Escalation Rules for Invoice Approvals: Keep AP Moving Without Chasing

How to Review Invoices Without Losing Your Filters: A Workflow Fix for AP Teams

Solutions

Features

Pricing

Integrations

Resources

Software Solutions

Company

Industries

Compare

Guides