Electronic Invoicing

Electronic Invoicing a.k.a. PROGRESS

“We would like to do away with paper invoicing completely because of the man hours and cost involved in processing this paperwork.”

More and more organisations are saying YES to electronic invoicing.

The challenge is: how to STOP your suppliers sending paper invoices and START sending electronic invoices? That is easy, right?

Costs. Is it only about the reducing the cost with the grind of processing paperwork or are there other reasons why interest in electronic invoicing is rising?

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.

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.

Think about this: if you are a supplier and your customer has implemented electronic invoicing then you should know that you customer is looking for a return on investment. That will include reducing costs in Accounts Payable, capturing early payment discounts and dealing with compliance. None of these are trivial and they depend on your participation. Are you ready for electronic invoicing?

Say YES to electronic invoicing and YES to PROGRESS.

The postings on this site are my own and don’t necessarily represent IMPAQ’s positions, strategies or opinions.

posted by FrankB @ 1:52 PM