Power of PAYBOX®
Advantages of Invoice Consolidation for AR
Your best customers are repeat buyers who routinely place multiple orders. They place a high volume of orders because they trust your company to deliver their required goods or services in a timely manner. Invoice consolidation reinforces the trust they have placed in your brand by making invoices more manageable and more convenient.
But relationship building isn’t the only benefit a consolidated approach provides your organization. For most corporations, invoice consolidation also creates opportunities for AR improvements—the kinds of improvements that increase bottom line business performance.
What Is Invoice Consolidation?
Consolidated invoicing is a fairly straightforward concept, but one that offers significant benefits to both sellers and buyers. In its simplest form, invoice consolidation refers to the practice of sending a single bill that encompasses all of the orders the customer placed over a specified period of time.
Customers appreciate a consolidated approach because it simplifies invoice management and payment processes. Rather than having to pay many different invoices for all of the orders placed with your company over the past week, month or other time period, customers can manage and pay a single bill—allowing them to maintain a more efficient AP function.
The consolidation of invoices also yields important benefits for sellers. In the same way that consolidation creates opportunities improved efficiency in AP, it helps sellers increase the accuracy, efficiency and speed of AR processes.
How Invoice Consolidation Benefits AR
Every invoice you generate introduces additional opportunities for errors, misplaced documents and payment delays. When combined with an advanced AR electronic invoicing solution, consolidation can reduce your company’s exposure to these and other risks that threaten AR efficiency.
Invoice consolidation makes sense for companies with customers that routinely place multiple orders per billing period. Some of the financial and operational AR benefits that can be achieved with a consolidated invoicing approach include:
- More efficient AR processes
- Higher customer satisfaction levels
- Reduced billing errors
- Improved compliance and audit trails
A recent study by Direct Insite and Blue Hill Research showed that the top three AR challenges corporations face are:
- Controlling labor costs
- Customer resistance to e-invoicing adoption
- Customer attempts to extend payments, and default, missed or delayed payments
Invoice consolidation addresses these challenges by reducing the cost of invoicing, incentivizing customers to embrace electronic invoicing and streamlining the payments process—milestones that are most effectively achieved through the implementation of advanced AR and e-invoicing technology.
Direct Insite: AR Technology for Invoice Consolidation
At Direct Insite, we specialize in providing AR solutions that help some of the world’s largest corporations achieve real-world business advantage. Our innovative PAYBOX® invoicing and payments solution offers a convenient and effective platform for transitioning to or improving invoice consolidation in your organization.
From electronic invoice presentment and validation to dispute management and cash flow forecasting, our PAYBOX® solution offers a comprehensive resource for a wide range of AR and AP processes—providing the edge you need to transform your company’s financial supply chain.
Contact us at (610) 212-2487 or email us at firstname.lastname@example.org for more information or to schedule a private demonstration of our PAYBOX® solution.