A new report from PayStream Advisors, Electronic Invoice Adoption Benchmark Report, publishes the results of a survey of over 300 Accounts Payable (AP) and Procurement professionals. There are some interesting measurements – including the way that e-invoicing is definitely on the rise. Be that as it may, this comes as no surprise, as more and more associations are beginning to realize the benefits of investing in an e-invoicing arrangement.
So what is inciting associations to embrace e-invoicing?
Securing a reduction in overall processing costs is currently one of the biggest driving components as per the survey’s respondents, with e-invoicing leading to a noteworthy reduction right now. Benefits brought to the AP department include:
- Reduced information entry costs
- Reduced document storage costs
- Improved profitability of the AP team
- Improved supplier relationships
- Improved level of service to internal departments
- Reduction in late payments
- Reduction in duplicate invoices.
The second principle reason for deciding to move to e-invoicing, as reported by PayStream’s survey respondents, is to eliminate paper from the AP department. Processing paper invoices physically is work intensive and expensive, and just as reducing the physical measure of paper in the office – and greatly improving a business’ green impression – receiving an e-invoicing arrangement likewise helps cut down the expense of invoice processing considerably.
A run of the mill purchase to pay process (P2P) involves the AP department in dealing with a large group of key documents – purchase orders, invoices, receipts, etc. This has consistently been a huge issue for the AP department, especially the same number of need to be authorized or approved by people over the association, a lengthy process and prone to error. An hoa don dien tu fpt arrangement enables the AP staff to process any document which enters the department, effectively and efficiently. As per the PayStream survey’s respondents, the biggest advantage of moving to e-invoicing is the resulting reduction in procure-to-pay cycle time. Benefits of this reduced P2P cycle time include being able to ensure that invoices are paid on time and greater supplier markdown take-up. It likewise carries better relationships with suppliers.
However, even however the number of businesses considering embracing an e-invoicing arrangement is increasing – the survey reports 46 percent of their respondents currently evaluating moving to e-invoicing – PayStream Advisors found that barriers to implementing such an answer remain inside associations. Of the survey respondents, 51 percent said that one of the top obstacles is reluctance with respect to suppliers to embrace electronic invoicing – a barrier to robotizing continually reported as a fundamental concern for associations. Overcoming supplier resistance is not easy, however most arrangement providers offer on-boarding projects to help clients convert to e-invoicing.