What if you could make a saving on each invoice that your company process?
How many invoices does your business send and receive every month? It’s probably not an easy number to pin down – or even to hazard a guess at.
Nonetheless, if you could guarantee making a saving on each and every one of those invoices…well, I’d confidently guess you’d consider that pretty good news.
So let’s put a number to it. €6.60 saved on every invoice sent and €11.20 saved on every invoice received. Sound interesting?
That, as estimated in a 2016 report by Billentis, is how much you could expect to save by switching your business over to a fully electronic invoicing system.
“If you could guarantee making a saving on each and every one of those invoices…well, I’d confidently guess you’d consider that pretty good news.”
Rapid increase in take-up
It’s a saving worth making, as more and more companies are realising. The European E-Invoicing Service Providers Association (EESPA) reports that 1.25 billion invoices were sent around Europe in 2015 – a 27% increase on the previous year. Clearly, news of the benefits is spreading.
By leaving behind paper invoices, you make an immediate saving on everything involved in their printing and posting. You also remove the cost associated with the processing of those invoices.
But there are even greater savings to be made – beyond those made simply on sending and receiving. Here’s what takes it to the next level.
Smart savings on Accounts Payable
Digitising your invoicing unlocks all of your business’ expenditure as data. Once you’ve got that, you can map supplier performance and cost. Perhaps you’re dealing with multiple suppliers for the same products; you can use your business spend data to consolidate those purchases, and then use that data to negotiate better prices.
And then there’s the invoices you receive. Inputting invoice data is a time-consuming process – making it both costly and ripe for the introduction of errors. Switching to electronic means those invoice details are automatically updated within your system, direct from the buyer.
The system can also match up the pricing and terms on the invoice with those agreed with the vendor, as well as ensuring that what’s been charged for is what’s actually been delivered. So your business pays what it should.
“There are even greater savings to be made – beyond those made simply on sending and receiving.”
Guaranteed invoice delivery for Accounts Receivable
The processing stage becomes easier as well. If you’re posting or emailing invoices, how do you know they have been received? Once your invoice goes past due, how often do you currently get the answer that ‘it never showed up’ and have to send it again, with a renewed payment period? When an electronic invoice is sent it is automatically received and processed. There’s no argument over whether it turned up.
There’s benefit to your business cash flow. By processing invoices directly, nothing goes missing – all upcoming payments are easily viewed, so payments can be budgeted for.
The bottom line
Yes, electronic invoicing saves you on the cost of printing and sending invoices – but, as you can see, the savings run so much deeper than that. And that is why companies are switching so fast.
Please get in touch for further details about the savings that your business can make by switching to electronic message handling.