Unleash The Risk Of Not Using Software For E-Invoicing Automation
E INVOICING AUTOMATION NEWS
For any business, fast and secure order-to-cash process is an imperative for success. Typically, financial invoices are sent as paper, or an Excel spreadsheet, or PDF document. This requires manual and tedious process for processing the payment which is an inefficient way of managing finances. Automation of Invoicing through E-Invoicing can streamline the process and accelerate it. But, what happens when companies refuse to make use of automated E-Invoicing process?
Delaying the processing of payment on behalf of customers and suppliers can cause huge losses to the organization. Not having thorough E-Invoicing process in place can force the organization to suffer miscommunication in billing environments. The lack of visibility of the customers? accounts and receivable book also relates with mismanaging the accounts. As result, businesses face cash shortfalls due to unprocessed invoices and late payments. Interlinked in the whole process, is the increased risk of payment frauds due to the lack of reliable and secure invoicing system.
The executives in company usually depend on the sales and delivery team for transparent visibility of the purchase order and its payable amount in timely manner. If invoicing data is inaccurate or incomplete, it can cause delays and other discrepancies in both ordering and payments. Furthermore, following up and reconciling invoices become hassle as manual invoices lack the level of detail and accurate information needed to respond instantly; this in turn, can lead to extensive backlogs.
Today, numerous invoice processes either involve paying suppliers or collecting payments from customers. If this amount is incorrect or is not properly directed, the invoices may have to be paid twice or even worse, not at all. The resultant of this can be accounts payable (AP) disputes or accounts receivable (AR) disputes. Studies have revealed that an average 11% of companies often face disputes over incorrectly calculated accrued interest, late payments fees and other charges.
Considering the magnitude of the high risk that an organization endures from lack of software based e-invoicing automation, it is crucial to use apps or software that can provide efficient connectivity and visibility. Financial executives should make use of software solution for e-invoicing that can seamlessly manage businesses accounts and integrate invoicing data with other parts of the organizationseamlessly. As the e-invoicing process automatically generates the required documentation, companies can easily detect any fraudulent activity with the help of audit reports. Additionally, these software can be integrated with other enterprise systems to automatically create and map transaction data, while offering more efficient, streamlined and simpler way to process invoices.
Organizations should employ invoice management systems that enable timely payments and smooth cash flow. This also helps in validating any discrepancies and solving any disputes before they start to cause any serious trouble. The use of Software for e-invoicing automation also helps in expecting an easier transition by providing tools needed to digitize and automate the process. Hence, the wise choice for any company is to utilize the benefits of automated e-invoicing process to reduce the risk of not using software for e-invoicing automation.
