Failure To Leverage E Invoicing Software With An Order To Cash System
E Invoices
Organizations of all sizes are becoming increasingly aware of the benefits of streamlining their Order to Cash (OTC) processes with the use of dedicated Softwaresolutions. Unfortunately, many organizations are failing to sufficiently recognize the power of software when it comes to Invoicing. Without an invoicing solution, business are likely to miss out on the pursuit of cost savings, process automation and overall efficiency improvements, thereby impacting their financial bottom line.
From C-suite point of view, decision-makers must properly assess the risks of forgoing an invoicing system within their OTC set up.Without an e-invoicing solution, companies open the door to the risk of costly errors, slow data processing, manual invoice entry, low vendor adoption and unhappy customers.
Errors become all too common when invoices are manually entered into system. Whether it is in the inputting of an invoice, entering wrong rate of tax or mislabeling an invoice number, the lack of an automated system makes room for these errors to occur. As result, time-consuming corrections must be conducted, leading to less efficiency.
Tapping into the power of automating invoice processing with e-invoice solutions can drastically reduce the amount of data entry and help reduce turnaround times. This means invoice status is updated in real-time, making it easier to track the progress of payments and stay ahead of cash flow.
The introduction of e-invoicing systems is often met with broad vendor adoption as it allows suppliers and subtractors to receive electronic documents. Such solutions steer away from the traditional paper-based system and offer suppliers the opportunity to receive and process invoices quickly and securely. This ensures that customers are billed correctly and on time, giving way to smoother OTC process.
In an ideal world, the use of e-invoicing solutions should be an integral part of the order-to-cash system for any business relying on rapid, accurate and secure invoice processing. Benefits such as increased efficiency and accuracy, reduced manual labor, automation of approval processes and improved vendor adoption speak for themselves.
Ultimately, the choice of whether to integrate an e-invoicing solution into the order-to-cash system boils down to the cost-benefit analysis of any organization. What may appear to be an additional cost in the short-term may be outweighed by the benefits as long-term investment. All in all, an organization must do its due diligence in weighing up the risks of forgoing an e-invoicing solution well before it has negative implications for its financial bottom line.
