According to the 2010 Hackett Group AP Performance Study, there is a strong correlation between e-invoice processing, and higher rate of on-time payment. And, you know how timely payments help organization save a lot of dollars. The report showed that the organizations that use e-invoice for 80 percent of their items had lower cost per invoice ($2.14) than companies that used e-invoice for only 2 percent of their items. The latter experienced a higher cost per invoice ($5.22). The payment performance was also better with the first group. Now if this is not reason enough for you to invest in online invoice management software, here are many more reasons to pick up one.
The Software Moves with You
The prefix, ‘online’ implies that the software resides in a web-based server or cloud-based server – NOT in an on-premise server. The advantage? You literally carry it in your pocket. Now, this is an amazing feature. An online invoice processing system allows you to access accounts payable (AP) data from any place – all you need is an Internet connection. Whether you are in office or out in a business trip, an online system not only enables you to get a glimpse of all received invoices, but also takes the stock of all your payments from any part of the world.
It Lets Your Vendors Breathe Easy
Manual invoicing is plain tedious – you open the mails, sort through bills coming from multiple vendors, and then enter data separately into the system. In a paper-world, your vendors go through the same harrowing experience, if they attempt to do it manually. Online invoicing facilitates a system that allows all your vendors to submit their bills online by logging into your company website. As far as e-invoicing systems are concerned, it is entirely the software’s lookout to enter date, time and number of invoices. This frees both you and your vendors from the laborious task of keeping record of the all the invoice status.
Complete Business Suite
Besides automating your AP process, most types of this software also handle the tax part by default. The better the software, the more options it offers. Reporting, graphing, summary features and high-level communication tools are some of the bonuses that come free with these solutions. These software support both internal and external communication, and are capable of generating various types of reports such as error report, on-hold report and accrual report. Most of them come complete with ‘chat’ features, keeping open the channels of communication between the company and the vendors round-the-clock.
Focus on Your Core Business
Whether you deal in health care, hospitality, real estate, education or any other sector, as a business-owner, your primary lookout is to expand your market presence, and not wasting your time on the financial nitty-gritty. And, this is where the online invoicing software comes into the picture. Moreover, they give you the peace of mind that all your payment data is secure and can be retrieved in just a few clicks.
Speed is the other name of online invoice management. It is designed to save your time by automating a lot of work that you had to do manually, if you were processing paper-invoices. Investing in invoice management software geared to your unique business needs will enable you to take better control of your accounts payable processes. Opt for a reputed name in the industry, which can build a customized solution specific to the needs of your business, the industry, and the legal requirements thereof.