While many companies have begun using e-invoicing for business-to-consumer transactions, some have been hesitant to use similar software for business-to-business billing. Looking forward, however, it is likely that recognition of invoice automation’s multiple benefits will be widespread, and that payments between businesses will be made online more often than not. With the continued expansion of cloud software and the goal of the paperless office, B2B e-invoicing should be next on the docket.
1. E-invoicing saves time and money
Both paper usage and employee functionality can be improved by making the transition to invoice automation, explained The Future of Things. On average, the time it takes between sending an invoice and receiving a payment can be slashed from 17 days without e-invoicing to just three with it – an incredible difference of 14 days. Imagine how many further business transactions can be made with that freed-up time, and how much more productive employees can be. Billing and payment processes can be streamlined by invoice automation, allowing for more B2B trading to occur and higher margins of profit to be collected.
2. Governments are on board
Governments around the world have not been blind to the extreme cost-cutting measures that e-invoicing provides, the source said. In fact, they are, in many cases, leading the charge: In 2011, the United States Treasury mandated that all bureaus use invoice automation going forward after it estimated annual savings of $450 million. Ardent Partners conducted research on proficiency, and found that for the most efficient companies – which they termed “best-in-class” – an invoice cost $2.41 to process. For all other companies, the average cost was $17.61, a 600 percent increase.
3. It’s easier, plain and simple
Cloud technology and an increase in business done via mobile devices have paved a path for e-invoicing to flourish, Ardent Partners attested. Quite simply, the cloud makes everything easier for everyone – employees have constant access to important documents, and deals can be made (and paid for) much more quickly and efficiently. Modern economics moves at a fast-paced rate, and requires companies to have a penchant for mobility and flexibility. Invoice automation is the next step in office simplification.
With more and more companies moving their work to an electronic setting, it stands to reason that the next major process to be digitalized will be e-invoicing in the B2B sector. Consumers are able to pay for a great number of products and services using invoice automation, and business trading will soon jump on board for streamlining, cost-cutting and simplification reasons.
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