Reducing costs on accounts receivable processes and speeding payment time are the primary drivers behind 42 percent of businesses now seeking electronic invoicing solutions, according to a recent survey performed by PayStream Advisors and jointly sponsored by Syncada from Visa.
“Our latest research demonstrates that e-invoicing is no longer just a best practice but rapidly becoming a driver of dramatic efficiency gains,” said Henry Ijams, Managing Director of PayStream Advisors.
So who’s looking to adopt electronic invoicing solutions? Healthcare, financial services, telecommunications, and utilities are just a handful of the industries surveyed — all off which rely heavily on invoicing for their accounts receivable processes and spend a pretty penny on invoicing each month. By eliminating paper and utilizing more efficient technology, these businesses are hoping to improve cash flow while having greater visibility to their accounts receivable.
As with any change to a customer-oriented process, though, there can be apprehension to make a change. What if customers don’t like your slick new e-invoicing services? The study recommends to first engage your top and most flexible customers so you can see maximum impact as early as possible, and also receive feedback on your electronic invoicing process. Whether through better notification or clearer remittance instructions, you can be sure to have a smooth process before introducing electronic invoicing to your larger base. But keep in mind, the sooner you start to use electronic invoicing, the sooner your start saving money, which will have more impact on your bottom line at the end of the fiscal year.
Our customer, Maury Rogow, shared with us the pains that many businesses feel with legacy invoicing processes. “I was receiving payment by good ‘ol fashioned check, and felt like I was always behind,” he explained. “With checks, people would just hesitate, and then forget to send them altogether. So a lot of projects I would never even start work on because they never sent the deposit.”
By using a combination of e-invoicing and online payments, Maury was able to completely improve his accounts receivable process. “Nowadays I’m paid almost immediately,” he said. “And I can start work right away, which is better for our clients, as well as the business.” Read Maury’s full story here.
Ryan Hughes, owner of Hughes Financial Law, increased revenue and improved his firm’s accounts receivable process by using automatic billing and online payment remittance, an even more convenient and automated form of e-invoicing. Listen to his story below:
Apprehension to adopt efficient technologies pertaining to cost, security, and customer resistance are decreasing across the board — great news for the success and well-being of our small business owners!
Click here to download the full E-Invoicing Adoption Benchmarking Report.