How Many Invoices Can Be Processed in a Day?

Processing invoices is a critical function for businesses of all sizes. Whether you're a small startup or a large corporation, managing the flow of invoices impacts your financial health and relationships with vendors and customers. But how many invoices can be processed in a day?

The answer isn't straightforward, as it depends on various factors. Let's explore this topic in depth to give you a clearer picture.

Before we dive into numbers, it's crucial to understand what invoice processing entails. Invoice processing is the workflow that companies use to handle incoming bills from suppliers or outgoing bills to customers. This process typically includes:

Receiving the invoice

Extracting relevant data

Verifying the information

Matching it with purchase orders and receipts

Getting necessary approvals

Recording the invoice in the accounting system

Scheduling payment

Each of these steps takes time, and the efficiency of this process significantly impacts the overall payment process and how many invoices a company can handle daily.

While the number of invoices processed per day can vary widely, some industry benchmarks can provide a general idea:

For manual processing:

An accounts payable clerk might process 5-10 invoices per hour

This translates to roughly 40-80 invoices per day, assuming an 8-hour workday

For semi-automated processing:

Staff might handle 15-20 invoices per hour

This could result in 120-160 invoices per day

For fully automated processing:

Systems can potentially handle hundreds of invoices per hour

Daily totals could reach into the thousands, depending on the system's capabilities

Benchmarks

Medius provides the following benchmarks for PO invoice processing:

Best-in-class touchless capture rate: 99.9%

Best-in-class touchless processing rate: 95.0%

Best-in-class total invoice processing cycle time: 2.5 days

For non-PO invoices:

Best-in-class touchless capture rate: 99.9%

Best-in-class automatic routing rate: 98.0%

Best-in-class average approval time: 0.5 days

Best-in-class total invoice processing cycle time: 3.0 days

To get a more accurate picture of invoice processing capacity, many companies use efficiency metrics. One common metric is the number of invoices processed per full-time equivalent (FTE) per year. Efficient payment processing is crucial in avoiding delays and reducing costs associated with mismatched documents and human error. Industry benchmarks for this metric often break down as follows:

Low performers: Less than 5,000 invoices per FTE per year

Average performers: 5,000-10,000 invoices per FTE per year

High performers: 10,000-20,000 invoices per FTE per year

Top performers: Over 20,000 invoices per FTE per year

Translating these annual figures to daily rates (assuming 250 working days per year):

Low performers: Up to 20 invoices per FTE per day

Average performers: 20-40 invoices per FTE per day

High performers: 40-80 invoices per FTE per day

Top performers: 80+ invoices per FTE per day

Manual invoice processing

According to a study by Aberdeen Group, laggard organisations process invoices at a rate of about 2.9 invoices per day per full-time employee (FTE). This translates to the invoice processing costs of approximately:

41.3 days to process a single invoice

$25.83 cost to process a single invoice

In contrast, average performers process about 8.4 invoices per day per FTE:

14.2 days to process a single invoice

$18.27 cost to process a single invoice

Automated invoice processing

Best-in-class organisations can process about 32.4 invoices per day per FTE:

3.7 days to process a single invoice

$4.84 cost to process a single invoice

Automated invoice processing can significantly streamline the invoice payment process, ensuring accuracy and promptness.

According to Basware, high-performing AP units typically process invoices in 3-4 days, while laggards take an average of 17 days.

Scope saved 190 hours per client a year after implementing invoice automation:

With the integrated accounts payable solution, clients could pull all supplier invoices from the accounting platform and pay them individually or in bulk from Fyorin.

By eliminating the need to manually enter payment details or log into multiple banking systems, clients saved considerable time and reduced errors.

Clients could automate the reconciliation of receivables and ensure no revenue went missing with automatic follow-ups for overdue invoices.

Several key factors influence how quickly invoices can be processed:

Company size and resources

Larger companies often have more resources to dedicate to invoice processing, including specialised staff and advanced software systems. This can increase their processing capacity. However, they also tend to deal with a higher volume of invoices, which can offset this advantage.

Small businesses, on the other hand, might have fewer invoices to process but also fewer resources, potentially limiting their daily capacity.

Invoice complexity

Not all invoices are created equal. A simple invoice for a single item is much quicker to process than a complex invoice with multiple line items, discounts, and special terms. Industries that deal with more complex invoices, such as manufacturing or construction, might process fewer invoices per day compared to industries with simpler billing structures.

Manual vs. automated processes

The level of automation in the invoice processing workflow dramatically affects processing speed. Manual processing, where staff physically handle paper invoices and enter data by hand, is significantly slower than automated systems that use software to capture and process invoice data.

Staff experience and training

Well-trained, experienced staff can process invoices much faster than new employees still learning the ropes. Companies that invest in ongoing training for their accounts payable team often see higher processing speeds.

Approval workflows

The number of people required to approve an invoice can create bottlenecks in the process. Companies with streamlined approval processes can typically process invoices faster than those with complex, multi-level approval requirements.

Invoice format

Electronic invoices are generally much faster to process than paper invoices. Companies that receive a high percentage of electronic invoices or have systems in place to quickly digitise paper invoices can typically process more invoices per day.

Invoice processing comes with its share of difficulties. Data entry errors on invoices can throw the entire process off track. When an amount is incorrect, or information is missing, the accounts payable team must pause to investigate and correct the issue. This takes time away from processing other invoices, reducing the overall daily output.

Approvals often become a sticking point in the process. Invoices can sit idle for days or even weeks, waiting for the right person to sign off. During this time, no progress is made, and the backlog grows. The longer an invoice waits for approval, the fewer invoices the team can process in a day.

Many businesses face seasonal spikes in invoice volume. These busy periods can overwhelm even well-established systems. The sudden influx of invoices may exceed the team's capacity, leading to delays and decreased daily processing numbers.

Regulatory requirements add another layer of complexity for some industries. Extra checks and documentation slow down the process considerably. Each additional step takes time, reducing the number of invoices that can be handled in a day.

Companies have several options to increase their invoice processing capacity. Automation stands out as a powerful tool for boosting efficiency. By implementing automated systems, businesses can handle a much larger volume of invoices each day. These systems reduce manual data entry and speed up the entire process.

Working with vendors to standardise invoice formats can yield significant improvements. When all invoices follow the same layout, it's easier to quickly extract and verify information. This consistency allows for faster processing times and can increase daily output.

The shift to electronic invoicing offers substantial benefits for processing capacity. Digital invoices eliminate the need for manual data entry, reducing errors and speeding up the process. With electronic systems, businesses can process more invoices in less time.

Streamlining approval workflows can also increase capacity. By cutting out unnecessary steps and implementing automated approvals for routine invoices, companies can significantly reduce processing times. This allows more invoices to move through the system each day.

Ongoing staff training plays a crucial role in improving processing capacity. Well-trained employees work more efficiently and can handle complex cases more quickly. Regular training ensures that the team can make the most of available tools and processes, maximising daily output.

Best practices for invoice processing include:

Automating invoice processing can significantly reduce manual data entry errors and increase efficiency. Automation tools streamline the entire process, from data capture to payment, allowing businesses to handle a higher volume of invoices with greater accuracy.

Accurate data entry is crucial for maintaining precise financial records and preventing errors. Implementing checks and validations at the data entry stage can help ensure that all information is correct.

Verifying invoices against purchase orders and delivery receipts ensures that the billed goods or services have been received and meet the required standards. This step helps prevent discrepancies and ensures that payments are made for valid transactions.

Scheduling payments according to agreed-upon payment terms ensures that payments are made on time, preventing late fees and maintaining good vendor relationships.

A well-designed invoice processing procedure can help reduce errors and delays. Clear guidelines and standardised processes ensure that all team members follow the same steps, improving overall efficiency.

Regular audits and reviews of the invoice processing procedure can help identify and address potential issues. By continuously monitoring and improving the process, businesses can maintain high standards of accuracy and efficiency.

By following these best practices, businesses can optimise their invoice processing procedures, reduce errors, and improve efficiency, ultimately leading to better financial management and stronger vendor relationships.

As technology continues to advance, the future of invoice processing looks promising. Emerging technologies that could further increase processing capacity include:

Artificial intelligence and machine learning can help systems learn to handle exceptions and improve accuracy over time.

Blockchain technology could create tamper-proof invoice records and enable real-time tracking of invoice status.

Advanced OCR improvements in optical character recognition technology will make it easier to quickly and accurately digitise paper invoices.

Mobile processing with apps that allow for on-the-go invoice approval could speed up the process for many businesses.

E-invoices and automated billing systems could eliminate the need for manual data entry and reduce human error.

The number of invoices a business can process in a day varies widely depending on factors like company size, invoice complexity, level of automation, and staff expertise. While manual processing might limit organisations to dozens of invoices daily, modern financial operations platforms can transform these numbers dramatically. At Fyorin, we've seen this firsthand - our clients achieve an 80% reduction in operational costs and save 190 hours annually through automated reconciliation of invoices and multi-currency payment capabilities.

The future of invoice processing isn't just about handling more invoices - it's about processing them intelligently and globally. As businesses expand internationally, success depends on having technology that can scale with you, handling everything from automated reconciliation to cross-border payments in 100+ currencies. The question isn't how many invoices you can process in a day, but how efficiently and intelligently you can manage your entire financial operations. Get in touch and start processing more invoices now.