An increasing number of businesses of all sizes are shifting their accounts payable processes toward electronic invoicing (e-invoicing) software, thanks to the considerable cost savings, speed, and security that can be achieved. The reduction in time and effort for your AP staff alone is reason enough to consider it.
So what are the benefits?
- Cut invoice processing time by 70% and cost by 82%
(Source: The State of ePayables 2018: The Future of AP is Now by Arden Partners)
- Ensure data accuracy by removing manual/keying errors
- Eliminate the possibility of lost or misplaced invoices
- Foster supplier loyalty through predictable, on-time payments
- Reduce the time spent on exceptions and inbound calls from suppliers checking on invoice status
Is an e-invoice just a paperless invoice?
It is important to understand that an e-invoice is not a fax, email, or pdf. It’s a fully digital electronic document from the time it’s created straight through to its approval and entry into the company’s ERP or AP system. It’s easy to handle and more secure than paper invoices. E-invoices are submitted via EDI, XML, or via a file from a supplier’s billing system. And that can translate into significant savings.
How much does e-invoicing save in time and cost?
Cost savings from e-invoicing are substantial. If you think that the same old paper invoices and manual processes are working out just fine for your company, here are the facts. Best-in-class AP departments are realizing cost savings of up to 82% per invoice and have cut the time to process an invoice by more than 70%.
What else can e-invoicing software do for my business?
E-invoicing offers benefits that go well beyond reductions in processing cost and time. Implementing e-invoicing software will also:
- Provide full visibility into all aspects of invoice status
- Enable payments to be processed earlier
- Increase capture of early-pay discounts
- Reduce the risk of fraud and duplicate payments
- Free your AP team to play a more strategic role in the company’s revenue efforts
- Give important and accurate data, like Days Payable Outstanding (DPO), that will help you better manage your cash flow and working capital
What if suppliers still submit paper invoices?
No problem. We can capture and convert paper to 100 percent electronic invoices at our Invoice Virtualization Center, whether they are submitted via PDF, web, fax, email, or snail mail. Using invoice scanning and double blind keying technology, we extract accurate, standardized information from invoices and convert them to true electronic invoices.
For the bulk of your suppliers, we will work with them to implement e-invoicing capability and get them connected to our Corcentric 24/7, free, self-service supplier portal. This will ensure that you get supplier invoices in electronic format for fast processing and your suppliers have access to invoice status in real-time.
It’s Your Process, Only Better.
Save money without sacrificing key details and process. Processing invoices manually wastes valuable time that your team can use to better serve your company’s strategic needs. But giving up manually handling invoices doesn’t mean you give up control.
E-invoicing allows you to:
- Define the allowable parameters and thresholds for invoice conversion
- Ensure your invoices are within your internal parameters
- Generate audit trails quickly to reduce audit cycle time
- Ensure compliance with Sarbanes-Oxley and other tax regulations
- Configure your invoicing rules to fit your specific business’s needs, no matter the complexity
- Set a maximum freight charge before the invoice requires additional approval
- Enable your suppliers to raise prices on commodities based on market changes
- Archive all your invoices so documents can be retrieved with a click
Corcentric e-invoicing breaks down the barriers
As with any new technology, resistance may occur. However, whether it’s concern over lack of budget, overuse of IT, complacency regarding existing processes, or a lack of understanding of available solutions, the more businesses learn regarding e-invoicing, the more they understand how benefits far outweigh barriers.
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