The accounts receivable department has an important role to play in any business. The timeliness and efficiency of invoicing can dictate the effectiveness of a transaction and go a long way toward determining whether or not the party receiving the invoice will maintain a relationship with the company or will simply be a one-time customer.
Accounts receivable best practices involve streamlining the invoicing process to ensure a quick payment and a happy customer. This is even more important in the B2B sales cycle because accounts payable clerks at companies do not have time to wait to receive their invoices and will not put up with extensive delays.
To expedite the process, many companies are turning to electronic invoicing. This blog has talked about the benefits of this innovative accounts receivable method in the past, and it appears now that more companies are turning to this practice due to the incredible cost savings they produce.
According to a report from e-billing provider Billentis and sponsored by GHX, electronic invoicing can save roughly 60 to 80 percent on standard processing costs, compared to traditional paper invoicing. That means that businesses choosing to go this route will yield a significantly higher value from each transaction, in addition to making their customers happy.
Billentis owner Bruno Koch spoke in a press release about the risks associated with traditional invoicing and how filing electronically can drastically benefit the vendor.
"Today's finance departments face a complex and challenging business environment that requires tremendous business savvy, making innovation an essential driver of the department's excellence," Koch said. "Erratic markets, the globalization of trading, new regulation and compliance issues, increasing complexity of business processes and steady change/transformation have forced the function of finance to redefine its role in the organizations."