Why Businesses Believe in Electronic Invoicing

This was a quote from a VP of Finance responding to the question; why do you believe that E-invoicing is such a good product for your AP Department? A few other AP Managers and Controllers responded and contributed to this topic.

From a Controller of a Service Company came this response, “Because you don’t have to rely on it to come in the mail, it comes faster and you can reference it into your accounting program. It also allows you to keep it into your computer so you can easily reference it and file it in a jungle drive.” Sic

It’s extremely important for invoices to be dealt with in a timely fashion.  Relying on the mail when processing invoices could be a disastrous proposition especially when referring to time and money. I just saw on the USPS website information regarding mail delays due to a snow storm on the east coast.

Winter Storm

The north east is bringing heavy snow and mixed precipitation throughout the Mid-Atlantic and Northeast. The Postal Service is currently experiencing impacts to delivery and retail services in Georgia, South Carolina, Virginia and the Washington, DC area. Further delays are expected in Pennsylvania, New York, South Carolina, Virginia and Washington, DC. We will make every attempt to provide service where it is safe to do so.  Please check back for updates.

With E-invoicing there are no mail delays, therefore it comes faster and more efficiently. Efficiency is also manifested in how easily it can be incorporated into your accounting system.  You can import invoice data to your ERP system, reducing mistakes made manually. Accounts payable automation brings you instant access to your invoices instead of having to search through file cabinets and chasing down paper copies.

A Controller answered the question and said, ‘“It simply costs too much; too much to buy, too much to print, too much to sort through, too much to attach, too much to scan, too much to store. Electronic invoicing allows both a vendor and their client/customer to be more efficient and save costs. One of the largest is labor costs. It is surprising how small and efficient an Accounts Payable Department or Invoicing Department can become through E-invoicing.”

My last response came from an AP Manager of a Healthcare company.  He said, “Freeing employees from the daily grind of mindless processing permits them to engage in tasks which are more appropriate and satisfying to today’s Accounts Payable workers, and (I believe) benefits an organization with a more productive allocation/ratio of equipment and human resources to the discipline of Accounts Payable.”

These responses came from those who work day to day in Accounts Payable and are making Electronic Invoicing happen within their organizations. They see how E-invoicing is faster, quicker, more efficient, and saves money with instant access.  They also are experiencing reduced labor costs that are freeing up time for better productivity in their organizations. They understand why businesses believe in E-invoicing and are making Electronic Invoicing their choice to process invoices. As a result, they are turning their AP Departments into profit centers.