E-INVOICING MADE EASY

Transcription

1 ebook: Accounts Receivable E-INVOICING MADE EASY Taking Control of Your AR Process

2 E-Invoicing Made Easy 2 TABLE OF CONTENTS E-INVOICING MADE EASY Taking Control of Your AR Process Purpose of this ebook... 3 About the Author... 3 Why Automate Accounts Receivable?... 4 Understanding the Cost of Manual AR... 5 Benefits of AR Automation... 6 How to Break the E-Invoicing Deadlock... 7 What Best Practice AR Automation Looks Like... 8 Esker s Approach to AR Automation... 9 Esker Mail Services...11 Customer Success Story: GECITech...12 Conclusion...13 About Esker...13 Data Security & Integrity...13

3 E-Invoicing Made Easy 3 Purpose of this ebook Compared to manual methods, the advantages of electronic accounts receivable (AR) invoicing are clear: It s faster, less expensive, more reliable, and eliminates the typical hassles and inefficiencies of handling paper. However, pulling off a successful move to e-invoicing can seem daunting. This ebook addresses those concerns and suggests taking an alternative approach to traditional methods where 100% e-invoicing can be achieved while still preserving the best interests of both the company and its customers. About the Author Steve Smith U.S. Chief Operating Officer Esker As U.S. Chief Operating Officer at Esker, Steve Smith is responsible for all operations in North and Central America. Steve joined Esker in 2003 after 17 years at Equitrac Corporation as the Senior Vice President of Worldwide Sales and two years in sales at Pitney Bowes. Steve earned his bachelor s degree in Marketing and Finance from the University of Wisconsin Whitewater.

4 E-Invoicing Made Easy 4 WHY AUTOMATE ACCOUNTS RECEIVABLE? Producing and delivering invoices to customers in a traditional AR process involves a series of time-consuming steps that puts a strain on the cash collection cycle. What advantages does going paperless offer? Below are the five biggest reasons to automate the AR process: Eliminate Inefficiencies. How much staff time is spent printing off and handling invoices? What about folding and stamping? By eliminating all these manual steps, AR automation brings greater efficiency to the entire process. Reduce Costs. Manual AR processing requires a big investment in labor, equipment and consumables. When the delivery and archiving of invoices is automated, operational costs are drastically reduced. 03 Boost Customer 05 Satisfaction. 04 By keeping every AR invoice electronic, retrieving documents and answering customer questions can be done with ease. Plus, companies can go 100% paperless without changing customer delivery preferences. Get Paid Faster. As invoices are processed more efficiently and delivered at a faster rate, the more likely it is they will be paid in a shorter time frame. This not only reduces DSO, but is sure to put a smile on the CFO s face. Grow without Growing. Instead of adding more staff and/ or equipment to accommodate growing invoice volumes, AR automation allows businesses to maintain current staff levels while still managing higher volumes. According to results from a recent IFO study, more than one-third of AR professionals spend over $2 to process a single PO-based paper invoice AR Automation Study, April, The Institute of Financial Operations.

5 E-Invoicing Made Easy 5 UNDERSTANDING THE COST OF MANUAL AR Sending customers their invoices via postal mail is a headache, sure, but how detrimental can running a traditional AR/mailroom operation really be? The problems become clear when you consider the amount of bottlenecks involved from generating an invoice to mailing it out: Invoice printing Collect supporting documents Copy for archiving Folding and inserting Stamping Post office delivery Distribution Streamlined AR Workflow Process When accounting for all of the various factors associated with running a manual mailing process, it s easy to see why an organization s time, money and resources become strained: Labor Hardware and maintenance Production equipment Printing Stuffing and collating Stamping or metering Errors and exception handling Archiving and storage Process quality

6 E-Invoicing Made Easy 6 BENEFITS OF AR AUTOMATION According to Esker research, AR automation can help organizations overcome the challenges of manual processing through: Increased Business Process Efficiency ERP Reduce document handling time up to 96% Cut the cost of sending billing documents up to 80% Reduced DSO by as much as 7 days Prevent lost invoices and related documents Adhere to 100% e-invoice regulatory compliance Place paper invoices in postal stream in less than 24 hours Enhanced Visibility Real-time tracking and reporting Immediate dispute resolution Improved Access and Response Billing documents readily available Faster dispute resolution Improved process control for quicker collections -80% CUT PROCESSING COSTS UP TO 80% -7 DAYS REDUCE DSO AS MUCH AS 7 DAYS

7 E-Invoicing Made Easy 7 HOW TO BREAK THE E-INVOICING DEADLOCK Delivering AR invoices more rapidly, accurately and efficiently is one thing, but satisfying varying customer preferences for receiving them is another many are simply not ready to change. Automated AR solutions give companies an option they never had before: making billing 100% electronic on their end without requiring change on the part of the customer. VOLUME PAPER INVOICE ELECTRONIC INVOICE Step-by-Step Approach Rather than taking aggressive action on e-invoicing (e.g., forcing customers to opt-in), the step-by-step approach creates a smooth transition between legacy systems and future e-invoicing operations. Companies gain the immediate benefits, while their customers can move to e-invoicing at their own pace. TIME

8 E-Invoicing Made Easy 8 WHAT BEST PRACTICE AR AUTOMATION LOOKS LIKE The ideal AR automation solution should include all of the necessary technologies to automate the sending and archiving of both paper and e-invoices according to customer preferences. The result is end-to-end efficiency, from delivery to archival. VALIDATE & TRANSMIT EXTRACT & FORMAT DELIVER & COLLABORATE PAYMENT ANALYTICS & AUDIT TRAIL ARCHIVE No Format Restrictions With the objective of sending every AR invoice electronically, a best-in-class automation solution can produce both paper and electronic formats that match varying customer media preferences. This flexibility helps to avoid disruptions and allows customers to transition to e-invoicing at their own pace. ERP Enhancement Any e-invoicing solution should offer billing capabilities that go beyond what a company s current ERP system can already perform (e.g., auto-bundling invoices, real-time invoice delivery based on customer preferences, self-service contact management, advanced read receipt notifications, etc.). Customer Convenience Convenience is key to any AR automation solution. A web portal not only allows the company to track and report on invoices, customers can access payment statuses and manage their invoices online. Online payment capabilities are also essential for making the customer experience more user-friendly.

9 E-Invoicing Made Easy 9 ESKER S APPROACH TO AR AUTOMATION Esker s Accounts Receivable solution completely automates the sending and archiving of paper and e-invoices regardless of media type, all via one universal, ERP-integrated and source-independent automation platform. ERP Process Efficiency & Seamless Integration Using key capabilities such as ERP integration, invoice delivery status notification and automatic routing of invoice copies, Esker simplifies billing operations and resource management, effectively removing the process inefficiencies associated with handling paper invoices. Advanced Analytics & Instant Accessibility Essential information from each invoice is readily available via Esker dashboards, which enable custom reporting and analytics and make every daily action smarter and more strategic. A web portal is available for the use of businesses and their customers, giving both parties instant access to all invoices and payment statuses online. Invoice Archival & International Compliance Archiving of original invoices is available for up to 11 years with secure online access available 24/7. Esker processes e-invoices in compliance with all international regulations, and its partnership with TrustWeaver promotes regulatory compliance in 40+ countries. Online AR Invoice Payment Capabilities Through its Paymetric partnership, businesses using Esker s Accounts Receivable solution can: Collect cash quicker by accepting electronic payments via credit card, e-check and more Reduce collections overhead thanks to a self-service tool Improve customer satisfaction by offering more payment options and greater access to invoices and statements Remove the risk of a data breach by supporting PCI compliance

10 E-Invoicing Made Easy 10 As the first SaaS solution to automate the sending and archiving of paper and e-invoices, Esker s Accounts Receivable solution is implemented in the cloud as an on-demand service. All of the functionality is built into a single platform, optimizing AR management in every aspect. Customers' data export CUSTOMER PORTAL DATABASE SUPPLIER Administrator ERP Invoice delivery method Media allowed to customers Copy CUSTOMERS Accounting Welcome to AP specialist Customer selects media preferences for receiving invoices ROUTING Routing based on customer media preferences Invoice received via with attachment Invoice received on the portal only Invoice received by postal mail Invoice received by fax Invoice received by EDI Supplier checks invoice delivery AUDIT SUPPLIER CSR Archiving 11 years Check invoice validity

11 E-Invoicing Made Easy 11 ESKER MAIL SERVICES For customers not ready to receive e-invoices, businesses can offload the delivery of paper invoices on-demand using Esker Mail Services making traditional business mail 100% electronic for the sender. Documents can be mailed easily and directly from any ERP, desktop or other business application for worldwide delivery to postal services in less than 24 hours of creation. Here s How Esker Mail Services Works: Customer documents are automatically routed to one of Esker s seven production facilities for processing and delivery. As part of a network of secure data facilities, each production facility provides 24/7 year-round service and least-cost routing for worldwide mailing. 7 MAIL PRODUCTION FACILITIES BUSINESS APPLICATION Document ESKER ON DEMAND ESKER DATA CENTER ESKER MAIL PRODUCTION FACILITY PRINTING POSTAL NETWORK Post office delivery RECIPIENT Distribution Archiving STUFFING STAMPING

12 E-Invoicing Made Easy 12 CUSTOMER SUCCESS STORY: GECITech Key Objectives Based in Lyon, France, and with over 20 years of experience, GECITech specializes in the manufacturing of flexible hose and stainless steel fittings for a variety of industries Our goal is to eliminate the maximum amount of paper in our company, including all paper archives, and put in place a fast and reliable solution for our customers. Esker has given us that. - CEO, GECITech Speed up processing time for volume of 700 invoices per month Improve invoice accuracy and staff productivity rates Eliminate maximum amount of paper in company, including paper archives Adhere to customer requests to receive invoices via and EDI What Esker Delivered On-demand automated solution capable for use across multiple processes Processing and delivery of all paper invoices to the postal service Automatic delivery of customer invoices by or EDI Ability to enact predefined rules to handle unique invoice cases Virtual printer services to send surveys, marketing or commercial mailings The Results Fewer errors by automatically fixing incorrect postal addresses Faster availability of electronic invoices and full document traceability Cost savings thanks to fewer consumables, no hardware maintenance, etc. Went from processing all monthly invoices in 1½ days to 15 minutes Reallocated two accounting staff members to more value-added tasks

13 E-Invoicing Made Easy 13 Conclusion Most customers still prefer to receive their invoices and associated documents via postal mail. In the past, this meant businesses would forego any hopes of going electronic in order to satisfy these preferences. Fortunately, the emergence of best-in-class automated AR invoicing solutions is changing that. With the right solution capabilities (ERP integration, web portal, etc.), 100% e-invoicing can be achieved while mutually benefitting the unique interests of everyone involved. About Esker U.S. Headquarters: Madison, Wisconsin World Headquarters: Lyon, France Data Security & Integrity Esker is an industry leader in document process automation solutions, helping organizations around the world Quit Paper and improve how their business information is processed and exchanged within Order Processing, Accounts Receivable, Accounts Payable, Purchasing and more. Esker has earned SSAE 16 Type 1 and Type 2 compliance for its on-demand automation solutions (following an audit conducted by A-lign Security and Compliance Services). This means Esker s processes, procedures and controls have been formally reviewed and are documented in accordance with the SSAE 16 guidelines. Esker also adheres to the principles set forth by the Safe Harbor Privacy Policy in respect to transfers of personal information from the European Economic Area to the U.S. AICPA Service Organization Control Reports SERVICE ORGANIZATIONS SOC aicpa.org/soc Formerly SAS 70 Reports Blog: blog.esker.com Twitter: twitter.com/eskerinc Web:

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