TOP-5 reasons for your business to consider implementing Electronic Invoice Management right away. As there's no time to waste!
No need to say that, for every company buying/selling products or services, sending invoices, receiving payments, handling invoice reconciliation — and doing it all at the same time — digital invoice management should be the process of preeminent importance. With a growing number of sourcing partners and procurement operations, too many businesses, understandably, are facing different issues with improper invoice management, misaligned cash flow, and other formidable challenges. In most companies (even quite profitable ones), that commonly leads to increasing cost-per-invoice, the lack of accuracy and timely invoice processing. Not to mention nearly zero early payment discounts, too much manual data entry, and Accounts Payable department literally drowning in a sea of paper). And no matter how skilled and well-trained your AP team seems to be after all.
Basically, with a properly employed electronic invoicing software, the whole manual process work handled by AP team can be instantly minimized by up to 95% and, more importantly, allow employees to be involved into other strategic or directly value-adding tasks. That’s why business growth and expansion may often appear hampered with lots of huge challenges, particularly in case you’ve already started down the road to invoice automation, but are still getting by without implementing a fully integrated end-to-end system. So, here are some crucial tips and basic guidelines to get the right invoice management software fitting your global business needs and current invoice automation demands at its best.
Of course, relying on email, Excel-like spreadsheets and manual data entry in general ledger may be good for small business — this method must be working, at least for some time. Nevertheless, that would always leave the door open for human error, misaligned document flow, with too much time and effort spent on data extraction, right PO match, central database search and invoice reconciliation.
The thing is that, according to the recent research, the average invoice is estimated to be draining from $5 to about $45 — depending on the hourly rate and the process complexity of invoice reconciliation — that would be occasionally spent due to incorrect routing or misfiling. So, with today’s available technology, there’s actually no reason to keep paying lots of unnecessary resources and man-hours for processing, storing and routing the invoices manually.
Invoice fraud appears one of the most frequent happenings occurring on a business false front. Actually, even industry flagships and tech giants like Google and Amazon used to fall victims to it as well — simply paying fake invoices for 1-2 years to lose around $50-100 million after all. While the fraudsters are usually betting on far not fully traceable paper document flow, spotting fake business name/address or invoice duplication manually can easily take months (or even years). Electronic invoicing software, in contrast, can easily flag suspicious actions like that long before invoice approval and payment commence.
Invoice management handled proactively by means of electronic invoicing software can provide simple conditions and early payment discounts where everybody wins. Moreover, no matter the scale or lifetime of your company, some invoices would be inevitably missed or wrongly routed — meaning vendors are constantly about charging you with late fees. In case there is a percentage, rather than the flat amount charged, accumulating lots of late fees could easily bring a critical impact hitting not only your cash flow but damaging the whole commercial sustainability of your business.
Much like with the process of manual invoice reconciliation, producing accurate reports without having the right e-invoicing software in place will, understandably, need lots of time and human effort to properly collect the whole data input. At the same time, however, a well-organized central database can finally make reporting easy and quick like never before. Since everything is generated just in few clicks, an all-round approach to digital invoice management will always possess a massive potential making a considerable difference — not only regarding smooth AP operation — but for considerable gains in greater business efficiency.
If you are still getting by without having most business processes streamlined into a single database, a professionally tuned Enterprise Resource Planning software (ERP) can automatically trigger massive efficiency gains. In case your company has no room for global digital improvement, getting started with the basic e-invoicing software tool (or even single standalone invoice management software solution) will instantly elevate labor productivity, in line with mitigating the risk of human error and tackling the rest of potential issues associated with fraud.
For those businesses already employing Spend Management systems or custom online frameworks to keep their strategic processes under control, our team has one of the best-in-class invoice management options. Check out Nectain E-Payment, a high-performing tool designed for maximum seamless integration compatible with all accounting systems or ERPs, which can be easily added to the existing set modules or custom Supply Chain framework of any complexity.
Just keep in mind the old maxim: “While implementing ERP needs consistency and long-term planning, the longer company is messing with paper, the more potential income it would be losing over time”.
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