Digitalize your accounts receivable: a must for 2018
Electronic billing is now part of everyday business. It is one of the steps in the digital transformation process. Even so, did you know that 90% of invoices around the world are still handled manually? Yet this figure is changing.
Billentis estimates that the volume of electronic invoices will reach at least 36 billion internationally in 2017, with an annual increase of 10% to 20%.
It seems that governments are starting to recognize the benefits of e-invoicing. In Europe, regulations require public administrations to adapt their systems by November 2018 in order to accept electronic invoices. In the United States, government agencies have until the end of 2018 to achieve the same transition. These are all good reasons to seize the opportunity to digitalize your accounts receivable!
The financial advantages of digital accounts receivable
Electronic invoices have a number of advantages, such as speeding up payments and generating cash in a business. According to a study by Atradius, late payments in a business are mainly due to incorrect information on invoices. In 26% of cases, they are even sent to the wrong recipient. By switching to e-invoicing, companies are reducing these types of errors and getting paid quicker.
Apart from gaining in efficiency, electronic invoicing allows you to save a substantial amount of money. Based on a white paper by the Federal Reserve Bank of Minneapolis, e-invoicing can result in savings of $4 to $8 per invoice. This doesn’t seem like a huge amount. But if you multiply it with the total number of invoices produced around the world—which Billentis estimates to be 500 billion—the savings are far more significant!
There are several ways to change to e-invoicing. Invoices can take the form of a PDF, EDI, email, interactive document, or even text message. Each company must find the formula that is best suited to their customers. So your accounts receivable can become interactive, appealing, automated and digital!
Would you like to make the switch to e-invoicing? Find out more about the different possibilities in this short video or contact us to speak with one of our advisors.