Do you know how much paper invoices really cost your business?
Top Five Reasons You Should 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 a paper-based to a digital AR cycle. But what are the benefits of electronic invoices and why should you consider making the change? Here are the top five reasons you should switch to Smart e-Invoicing today
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 you 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 than digital invoices. When you mail your customers paper invoices, they typically mail 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
Forty-one percent of businesses state that a high percentage of invoice exceptions was a top challenge in 2018. While exceptions can never be 100% eliminated due to user error, 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, they’re 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, smarter 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 from NAW’s Trusted Partner, a “Top 10 AR Solutions Provider for 2019,” Unified Commerce.
You will hear Wholesale Distribution and Payment Industry expert, Madeline Long, Unified’s VP of Enterprise Solutions, discuss why 81% of U.S. businesses are moving to a fully electronic AR process and answer frequently asked questions about the impact of electronic invoices on wholesaler-distributors.