Why You Need E-invoicing For Your Business
Adoption of e-invoicing is on the rise and according to studies it has many benefits that companies should take advantage of, in order to improve and grow their businesses. Enhanced customer relationships, elimination of customer churn and the cash flow improvement are only some of the outcomes that e-invoicing has.
E-invoicing, electronic invoices are automatically sent online, speeding up the process altogether. A study has shown that businesses can achieve one to two per cent of their turnover when using automated financial processes. But why else should businesses invest in electronic invoicing?
1. E-invoices have better cash flow visibility than their paper counterparts, allowing customers access to their invoice statements from anywhere in the world 24/7. In addition, OPS allows you to see all of your invoice activity in graph and CSV format and in compiled summary reports which pull together additional data from other internal systems. The Dashboard is a good way of presenting the invoice activity in diligence and it offers cash flow forecasting visibility to your Financial Directors.
2. E-billing can reduce the days sales are left outstanding (DSO) and enables your customers to make immediate payments. It has also been found that this method offers customers easier access to account handling access therefore allowing them to complete their own administration work which consequently reduces finance departments work. It is a handy process because it eliminates the 'lost in the post' excuses, reduces the number of customer queries and informs businesses about paid invoices. For example DHL Europe (shipping, courier and packaging service), has been able to reduce DSO by two to three days after investing in an online payment system.
3. Happy customers equals to more profitable customers. Customers who use it have access to their own personalised e-invoicing replacing telephone calls to your staff. Businesses can offer the best possible service by allowing customers to feel more in control of their financial relationship with your business, improving customer communication and loyalty.
4. The need to adopt e-billing is rapidly advancing as customer demand increases. Online payment systems maintain a competitive advantage and is a good reason for enterprises to adopt it.
OPS allows you to cut out the paper work and decrease late payments for your customers/clients by using electronic automated processes that can improve client negotiations and increase your cash flow.
Interested in improving your payment system? Find out more about Open Payment System and how it can help you better manage your accounting system on info@openpaymentsystem.com