E-Invoicing Benefits for Suppliers
The e-Invoicing process provides quite a few benefits for your business and company. However, in order for e-Invoicing to be fully successful, the benefits associated with the suppliers shouldn’t be neglected or underestimated. In other words, e-Invoicing isn’t a one-way street. You need to take care about the interests and benefits of other parties involved in your newly implemented eInvoicing system. Some of the key supplier-related benefits include the following:
Faster and more efficient payments
The eInvoicing process in an outstanding delays “eliminator” that are related to mailing, routing, and sorting of numerous paper documents. With eInvoicing, your customers can easily process your invoices thanks to an opportunity to immediately obtain all necessary documentation electronically in their financial systems. Eventually, all invoices can be processed and paid on time, and more importantly, this also means that the number of the DSO (days sales outstanding) will be significantly reduced.
Reduction of costs
According to the most recent studies’ findings, all companies that decided to fully automate their AR (accounts receivable) systems and processes have achieved major cost reduction and significant financial savings. In addition, delivery costs can be reduced almost for 80% thanks to savings achieved in postage systems, for materials, and storage. Additional savings can be obtained from reductions associated with the reprint requests, including customer service inquiries and calls.
Reduction of rejected invoices
This is a very benefit of eInvoicing for your suppliers. This process can eliminate the supplier’s need to manually check all the data, which in return significantly minimizes the potential risks for costly data entry errors. Therefore, your invoices aren’t very likely to be withdrawn or rejected. In addition, you customers can process them without no delays.
Improved Efficiency and Productivity
With electronic processing and delivery of your invoices, you can expect that your customers will get their invoices when and where they need them the most. You’ll significantly reduce the number of status calls. Improved accuracy is directly associated with eInvoicing ability to reduce the amount of work necessary to dispute and follow-up all phone calls.
Improved account reconciliation
Suppliers are very often required to reconcile certain payments they get from their customers against the initial invoices. On the other side, customers tend to consolidate quite a few invoices for a single bank transfer. In addition, they very often need to call the supplier’s AP department to obtain the details associated with the funds being received. Thanks to e-Invoicing customers can submit an electronic remittance along with the payment, and provide detailed info of invoices being paid, including all debit and credit adjustments. What’s, even more important, this can resolve problematic situations where a customer claims certain deductions against the invoices due to shipment troubles. For example, damaged or missing items.
Enhanced customer satisfaction
This is undoubtedly the biggest e-Invoicing benefits for suppliers. Much less invoicing and processing means that customers will get the satisfactory level of services. Companies that have already implemented eInvoicing system experience the much lower volume of customer complaints.
As always, there are many choices when selecting a partner to help your organization with things like e-Invoicing, but that topic will be for another day. VendorPortalExpert.com