Give me 10
I spotted a blog recently where someone was in a flap to create a report for their boss with 10 reasons why they should implement electronic invoicing.Despite some help, including someone who questioned why their boss needed 10 reasons, wouldn't 5 do, they persisted that they needed 10 reasons. Now I write alot about electronic invoicing and talk to customers and I have never had any discussions that hinged on 10 reasons.
I suggest there are only 3 reasons that are material to a business discussion about whether or not electronic invoicing is up there to compete with all the other projects that are bidding for funding. Let's face it, most businesses take on a handful of projects a year, say 2 or 3, and they are the focus whether that is to fix a major problem or bring about an improvement that is measurable such as customer retention, increase in revenue, improved profit margins.
So, why might electronic invoicing rank as a contender?
The 3 reasons: COST, CASH, COMPLIANCE
Here you go, and I leave you find the other 7 or explain to your boss why in fact only 3 reasons are needed. Besides, 3 reasons are easier to remember than 10.
COST. You might choose to believe that your business can reduce costs by processing electronic invoices instead of paper invoices. There are lots of case studies that are available to help you with that assessment. Do you believe that your business will reduce costs and why is that important? Know the lessons that others before have learned from implementing electronic invoicing. Over what period will you achieve a ROI?
CASH. Businesses have varying appetites for cash from time to time that are expressed by suppliers offering early payment discounts and buyers taking advantage of discount terms. Many businesses do not get to take advantage of supplier discounts as invoices are buried in a paperwork mountain and due dates pass unnoticed. Electronic invoicing greatly improves the visibility of discounts that are available and allow a timely decision process to capture those discounts. Can you calculate the financial benefit to your business?
COMPLIANCE. The impact of regulations such as Sarbanes-Oxley, the EU Invoicing Directive and Late Payment legislation, focus attention on process and accounting practices, such as the payment of supplier invoices. In organisations today the technology defines the process and working practices. Electronic invoicing (technology) greatly assists business to implement controls and deliver accurate reporting to meet their commitments to transparency and accountability. Had any uncomfortable discussions with HMRC, your auditors or legal team recently?
The one that is not in the list is where are you compelled to implement electronic invoicing to meet the needs of a customer. My experience is that this is the starting place for many looking down the barrel of electronic invoicing.
Finally, to be prepared for a vital part of the discussion about implementing electronic invoicing click here
posted by FrankB @ 4:42 PM
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