Faster and more efficient payments
The eInvoicing process eliminates many process delays that are related to mailing, routing, and sorting of numerous paper documents. With eInvoicing, you and your trade partners can easily process invoices thanks to an opportunity to immediately exchange all necessary documentation electronically within the systems. All invoices submitted electronically can be processed and paid on time, and more accurately.
Reduction of costs
According to the most recent studies’ findings, companies that decided to automate their AP (accounts payables) systems and processes have achieved major cost reduction and significant financial savings. In some cases, the delivery costs were reduced by almost 80% thanks to savings achieved in postage, materials, and storage. Additional savings can be obtained from reductions associated with the reprint requests, including customer service inquiries and calls.
Reduction of rejected invoices
The increase in accuracy and efficiency is a core benefit of eInvoicing. This process can eliminate the supplier’s need to manually check all the data, which in return significantly minimizes the potential risks for costly data entry errors and time spent supporting the inquiries. Therefore, your invoices aren’t very likely to be withdrawn or rejected. In addition, transactions can be processed without delays.
Improved Efficiency and Productivity
With electronic processing and delivery of invoices, you can expect that your trade partners will get their information when and where they need it most. You’ll significantly reduce the number of status calls. Important note: Improved accuracy is directly associated with the ability to reduce dispute and follow-up labor.
Improved account reconciliation
Suppliers are very often required to reconcile certain payments they get from their customers against the initial invoices. On the other side, customers tend to consolidate quite a few invoices for a single bank transfer. In addition, they very often need to call the supplier’s AP department to obtain the details associated with the funds being received. Thanks to e-Invoicing customers can submit an electronic remittance along with the payment, and provide detailed info of invoices being paid, including all debit and credit adjustments. What’s, even more important, this can resolve problematic situations where a customer claims certain deductions against the invoices due to shipment troubles. For example, damaged or missing items.
Enhanced customer satisfaction
This is undoubtedly the biggest benefit of deploying an e-Invoicing system. Companies that have already implemented the eInvoicing system experience the much lower volume of customer complaints.
As always, there are many choices when selecting a partner to help your organization with things like e-Invoicing, but that topic will be for another day.