By Carrie Krell, campaign manager, Esker
Given the lack of market research data about accounts receivable (AR) automation, the Institute of Financial Operations (IFO) and Esker teamed up this spring on an AR automation study -- a fact-finding mission of sorts. The results are in, and they highlight key findings of qualitative and quantitative research conducted to gain insights into AR automation trends among companies in various industries.
Presented to several thousand AR professionals during the spring of 2011, the survey checked the pulse of the business world to discover how companies are sending their invoices to customers, the cost of sending those invoices, perceptions about the benefits of electronic invoice delivery, the key challenges of customer invoicing and the main obstacles to implementing solutions for automation within accounts receivable. In addition, the survey was intended to gauge trends in AR automation toward initiatives to reduce customer invoicing costs, improve invoice delivery and visibility, and facilitate customer adoption of electronic invoicing.
What the survey found is that invoice delivery processes remain paper-based at most companies, raising several key questions:
... How are companies sending invoices (postal mail, fax or email)?
... What is it costing companies to send out invoices?
... What are the key challenges of customer invoicing?
... What are the main obstacles to implementing an AR automation solution?
... How much time and money could e-invoicing save?
Based on the findings of this study, it is clear that AR departments have a long way to go in migrating from inefficient paper-based processes. The recommendation is for companies to keep a simple focus on delivery of customer invoices in assessing the value of technologies for AR automation. By focusing on delivery and investing in a solution that addresses their specific goals with regard to sending invoices, companies can take advantage of the opportunity to significantly reduce costs and improve efficiency.
On Tuesday afternoon, IFO and Esker will present a free webinar on the survey findings. For more information, visit: http://www.theiarp.org/ViewItem-563.do?parentCatId=271.
Showing posts with label e-invoicing. Show all posts
Showing posts with label e-invoicing. Show all posts
Saturday, June 25, 2011
Monday, April 4, 2011
EIPP takes center stage at NACHA Payments
Mark Brousseau
As businesses continue to push for reductions in operations costs and look for ways to support green initiatives, it’s no surprise that more of them are turning to electronic invoice presentment and payment (EIPP) as a solution. EIPP is a hot topic this week at NACHA’s Payments 2011 in Austin, Texas – great timing with Earth Day just a few weeks away.
“The volume of paper required to support traditional invoice and payments processes can be enormous,” said Michael Lane, CEO for EIPP solutions provider Data Impact. “According to NACHA’s PayItGreen Alliance, a firm initiating 260,000 paper payments annually could save significant resources by converting just 20 percent of those payments to electronic. And similar savings can be gained through electronic invoicing as well.”
Data Impact’s electronic invoicing solution allows suppliers to upload invoices and related documents to a secure site, and then customers can access the website and make a payment.
Considering the high amount of paper invoices that are wasted every year, the benefits to electronic invoicing are substantial, Lane said. International Account Payable Professionals (IAPP) and The Association for Work Process Improvement’s (TAWPI) 2011 Account Payable (AP) Automation Study indicates that 90 percent of respondents still receive paper-based invoices in their organization – a situation that Lane says businesses no longer can afford.
With EIPP, companies can solve their excess paper invoice problem while implementing a green solution. Lane said there are several ways e-invoicing support green initiatives:
· Reduced paper processing, printing, and storage
· Decreased duplication of invoices – “You won’t have four copies of the same invoice in four different places,” Lane noted.
· Reduced paper mailing, handling, and postage
“The green factor is obvious with e-invoicing,” Lane said. “But, its real value is streamlining procedures while providing businesses with a major cost reduction in account receivable functions such as invoice delivery, copy invoice and reconciliation.”
What do you think?
As businesses continue to push for reductions in operations costs and look for ways to support green initiatives, it’s no surprise that more of them are turning to electronic invoice presentment and payment (EIPP) as a solution. EIPP is a hot topic this week at NACHA’s Payments 2011 in Austin, Texas – great timing with Earth Day just a few weeks away.
“The volume of paper required to support traditional invoice and payments processes can be enormous,” said Michael Lane, CEO for EIPP solutions provider Data Impact. “According to NACHA’s PayItGreen Alliance, a firm initiating 260,000 paper payments annually could save significant resources by converting just 20 percent of those payments to electronic. And similar savings can be gained through electronic invoicing as well.”
Data Impact’s electronic invoicing solution allows suppliers to upload invoices and related documents to a secure site, and then customers can access the website and make a payment.
Considering the high amount of paper invoices that are wasted every year, the benefits to electronic invoicing are substantial, Lane said. International Account Payable Professionals (IAPP) and The Association for Work Process Improvement’s (TAWPI) 2011 Account Payable (AP) Automation Study indicates that 90 percent of respondents still receive paper-based invoices in their organization – a situation that Lane says businesses no longer can afford.
With EIPP, companies can solve their excess paper invoice problem while implementing a green solution. Lane said there are several ways e-invoicing support green initiatives:
· Reduced paper processing, printing, and storage
· Decreased duplication of invoices – “You won’t have four copies of the same invoice in four different places,” Lane noted.
· Reduced paper mailing, handling, and postage
“The green factor is obvious with e-invoicing,” Lane said. “But, its real value is streamlining procedures while providing businesses with a major cost reduction in account receivable functions such as invoice delivery, copy invoice and reconciliation.”
What do you think?
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