5 Steps to a Seamless Electronic Invoicing Process

Efficient, error-free invoice processing is a key component in the success of any business. Among other things, it helps ensure your staff aren't wasting their time and energy on laborious, repetitive tasks that could be entrusted to technology.

Research by Ardent Partners shows that 55% of executives view their accounts payable department as exceptionally or very valuable. The same report highlighted some of the most common challenges this team faces:

• 22% of the their department's time is taken up by supplier inquiries
• The average invoice costs more than $10 and eight days to process
• 22.6% is the average proportion of invoice exceptions accounts payable teams have to deal with

Many businesses could have a lot to gain from electronic invoicing, which can unlock benefits like:

• Time and money savings
• Healthier relationships with customers and suppliers
• Better cash flow management
• Compliance with payment terms

To maximize these advantages, it's important to take the right steps to ensure your e-invoicing process will run as smoothly as possible.

1.    Find the right system for you

There are various e-invoicing systems available today, so it's important to know what's on offer and which solution will be most suitable and beneficial for you.

For example, are you looking for software that you can customize and adapt to your specific requirements, or would you prefer a 'plug and play' option that can be implemented and used as quickly as possible?

To make this decision easier, ask questions like:

• What features and benefits are most important to you?
• Will a generic, 'one-size-fits-all' product be good enough, or do you need invoice management software that's tailored to your needs?
• How much are you willing to pay, or will a free, limited-feature product suffice?

2.    Get your customers and suppliers onboard

If you want to introduce a fully electronic invoicing process that encompasses your accounts payable and receivable, make sure all your customers and suppliers are aware of any changes that’ll affect them.

One important factor to take into account is whether the various businesses you buy from and sell to are fully equipped to handle e-invoicing. For instance, a small company that’s been a reliable supplier for many years might not be comfortable making the transition from paper to electronic invoices.

If this is the case, consider how you can be flexible in order to maintain relationships, potentially by accepting paper invoices and using software that has a scan-and-capture feature.

3.    Make sure you're benefiting from automation

There are some major benefits to be gained from incorporating automation into your invoice management. As well as taking on routine tasks and freeing up your finance team to concentrate on other things, automated systems can take the risk of human error out of the equation entirely.

When making the transition to e-invoicing, make sure you have a clear idea of the advantages you're able to achieve through automation, so you can select and implement your software in a way that ensures you see these positive results.

4.    Don't lose the human element

Software and automation can certainly make a positive difference to your invoice processing, but it's important that these benefits don't come at the expense of human engagement.

Making the effort to add a personal touch to your accounts payable and receivable functions can deliver a valuable boost to your relationships with customers and suppliers. For example, adding a personalized note to an invoice to thank a client for their continued business or their record for prompt payment, helps boost the overall customer experience.

5.    Remember best practices

Even when you have a reliable automated system in place to look after your invoice management, experienced human professionals still need to have a certain level of involvement in the process. One of the key reasons for this is that you need to ensure the business is sticking to invoicing best practices, such as:

• Deciding which incentives (such as early payment discounts) are likely to prove most persuasive for particular clients
• Utilizing invoices as a tool for marketing and promoting other, related services
• Ensuring documents are stored in the right way for easy accessibility, should they be needed for tax or compliance purposes

It's important to leverage the potential of technology to optimize your financial processes, but it's also vital to maintain human oversight of these key functions to achieve the best outcomes for the business.