Power of PAYBOX®
7 Ways E-Invoicing Drives Business Growth
An overreliance on paper-based payment processes represents a missed revenue and growth opportunity for enterprise organizations. Although e-invoicing is gaining traction in the enterprise space, traditional mail-in check payments still account for approximately 60 percent of all business-to-business invoice payments.
Paper invoices are costly, labor intensive and tremendously inefficient, creating bottlenecks throughout the financial supply chain that lead to data accuracy issues and large volumes of exceptions. By incorporating e-invoicing services, corporations can solve these problems while increasing profitability, streamlining AR operations and optimizing the financial supply chain.
How E-Invoicing Creates Value for Organizations
E-invoicing offers several important business benefits for corporations:
- Cost Reduction: With e-invoicing, companies save money on printing, mailing, handling and processing costs. In fact, an e-invoicing solution can take average invoice processing and collections costs from $35 down to $1 per invoice, while reducing labor requirements.
- Cash Flow Improvements: E-invoicing improves enterprise cash flow and working capital management by enabling companies to receive payments faster and reduce exceptions. In particular, e-invoicing can accelerate Days Sales Outstanding (DSO) rates by 80 percent.
- Increased Data Accuracy: Every instance of human intervention in the invoice process increases the likelihood of errors from manual data entry. By switching to e-invoicing, companies can dramatically improve invoice accuracy and reduce exceptions and disputes since invoice information is automatically imported into the e-invoicing platform.
- More Predictable Delivery and Payment Cycles: Paper-based invoices take longer to deliver and process on both the AR and AP side. With e-invoicing, organizations can reduce invoice processing times from more than 45 business days to less than 10.
- Simplified Application and Posting of Receivables: E-invoicing makes it easy for B2B customers to access and pay invoices from a single, user-friendly platform. This allows AR departments to post more than 80 percent of receivables straight-through.
- Stronger Security Protocols: Paper invoices can be easily damaged, lost or stolen, compromising the security of cardholder data and information. E-invoicing mitigates many of the risks associated with paper-based invoices, while improving compliance with external and internal business requirements.
- Centralized Reporting and Monitoring: For organizations that still rely on paper-based invoicing, it’s challenging to gain insights into long-term financial and payment trends. Invoices are often stored in disparate locations across departments, making them difficult to track down and analyze effectively. With e-invoicing, organizations receive complete access to active and historic invoicing data to drive more informed financial decisions.
With all of the benefits of e-invoicing, it’s no wonder savvy organizations are implementing sophisticated e-invoicing solutions into their AR departments. Our PAYBOX® e-invoicing module works with existing ERP systems and enables corporations to ditch paper-based invoicing for good.
Financial Institutions and Banks Also Benefit from E-Invoicing
Enterprises aren’t the only ones cashing in on the benefits of e-invoicing. For banks, e-invoicing processing services offer a lucrative source of revenue as income from traditional lockbox services wane and corporations look to their banking and financial partners to help them improve receivables collections and posting.
By providing comprehensive e-invoicing services to corporate clients, banks stand to generate millions of dollars in additional annual revenue. And it doesn’t require significant technology investments—banks can leverage their legacy technology and lockbox platforms by incorporating PAYBOX®, enabling banks to increase their return on technology investments while providing next-generation AR services to corporate clients.
Learn more about how PAYBOX® can transform your organization or bank by contacting me directly at 610-212-2487 or via email at firstname.lastname@example.org.