April 28, 2021
Top Five Reasons Businesses Switch to Electronic Invoicing
Wholesaler-distributors operate on razor-thin margins so reducing costs and accelerating cash flow are always top of mind. But do you really know how much paper invoices and checks cost your firm? According to the Association for Financial Professionals (AFP), 82% of businesses are migrating from paper-based workflows to digital A/R processes. What are the benefits of electronic invoices and why should you consider making the change? Here are the top five reasons many businesses have switched to dynamic Smart e-Invoicing.
The average cost to process a paper invoice is upwards of $12 according to NACHA (National Automated Clearing House Association). Electronic invoices cost just a fraction of that. Not only do Smart e-Invoices save you money, but they save time as well. You can get paid instantly, exceptions can be resolved in a matter of minutes instead of days, and your employees are free to concentrate on other important areas of the business.
Paper invoices aren’t just more expensive, they are far less secure. When you mail a paper invoice, your customer typically mails you a paper check payment. Did you know there are ten times as many incidents of fraud in paper check payments than electronic payments? According to the AFP, paper checks are still reported to have the highest amount of fraud activity, while ACH credits are reported to have the lowest.
3. CUSTOMER SATISFACTION
Customers enjoy the convenience of electronic billing, especially when they have the option of online payment. It is 30 times more expensive for your customers to pay you with paper checks than electronic payments. Offering your customers more ways to pay results in greater customer satisfaction, strengthened relationships, and faster payments to you.
4. INVOICE ACCURACY
Four out of ten businesses state that high percentages of invoice exceptions are a top challenge for their A/R team. While exceptions can never be 100% eliminated, Smart e-Invoices make it possible to amend and update invoices in real-time, eliminating manual invoice exception handling so that you and your customer agree on the invoice before it is paid, and all without ever having to pick up the phone or send an email.
5. ACCELERATED CASH FLOW
92% of electronic invoices are approved and paid on-time compared to just 45% of paper invoices. Not only are paper invoices expensive, insecure, and inaccurate, but they’re also slow. Dynamic, Smart e-Invoices eliminate mail times and manual exception handling, for a significant reduction to your days sales outstanding (DSO).
Simply put, Smart e-Invoices help you get you paid faster, easier, and at less cost. Want to learn more about what electronic invoices can do for your business? Download or stream the 14-minute Q&A Podcast.
Follow us on LinkedIn and Facebook to stay up-to-date with the latest payments and wholesale distribution industry-specific information!