The year 2008 will be remembered for the world wide ‘economic recession’. It has taken a toll on each and everyone of us in some way or the other. Nobody has been spared, be it individuals, corporates, SME’s, etc. But hang on, are the ripple effects really that negative? Till recently my answer would have been, yes they have been terrible. It is only a few days back that I came across some surveys and reports that suggest that companies have actually switched to practices that can shield them from potential economic adversities. One of them has been the transition from traditional invoicing to electronic invoicing presentment and payment.
According to new research from Giga Information Group, companies that opt to implement electronic invoicing can achieve a positive ROI with as little as 12-15 per cent adoption rate by suppliers. The reports reveal that companies have been proactive in implementing electronic invoicing because of improved efficiency for cash flows, accounts receivable and marketing.
International Accounts Payable Professionals Association demonstrates that enterprises and organizations can save staggering amount ranging between anything from £60,000 to £1.2 million a year. A whooping 69% compared to manual invoicing.
Credit Research Foundation of U.S conducted a recent survey to suggest top three reasons for implementing electronic invoicing. The survey gathered 267 responses across 50 industries. 54% of the survey population cited improved cash flow as the reason. 44% respondents said lower invoicing processing cost as result of improved data; 45% believed enhanced customer service for billing and remittance.
These facts prove that electronic invoicing is effective, efficient and effectual. It can dramatically reduce invoicing cost and helps you save both time and money. Two things which we are all short of.
It is said that positivity and negativity are two facet of the same coin. Though, the economic downturn has had a deep hurting wound, there is something to cheer about. At least, we know of one way to counter this recession and how to face it the coming years.