Did you know that relying on traditional processes can put your AR at risk? When it comes to manual paper-based invoicing, most mid-sized companies rely on outdated methods and limited resources for invoice processing and delivery. Many mid-sized businesses are spending large amounts of time and effort on manual invoice handling. On average, it can take up to 25 days to manually process a single invoice. Imagine having hundreds of such invoices piling up daily to get processed.
For mid-sized businesses, things get even tougher with an increasing volume of customer base. With limited resources, AR teams are unable to handle the increasing number of invoices. Any error in processing and delivery of invoices ultimately maximizes the Days Sales Outstanding (DSO). This delay in invoicing a customer can have negative effects on your working capital and cash flow.
At HighRadius, we guide our customers to establish proactive invoicing with RadiusOne eInvoicing and Collections App.. It can automate your invoice delivery via e-mails and AP portals that could minimize the operation costs and help in getting paid faster.
Let’s take a look at the struggles that mid-sized businesses face because of manual invoicing
Now that we have understood the challenges and impact of manual invoicing on AR, let’s take a look at how we can resolve these issues.
New-age adaptive technologies have enabled businesses to rely on automated solutions. This is to eliminate manual and clerical work and focus more on strategic and value-driving tasks. Growing businesses are looking for new ways to upgrade the current AR process to make it more efficient and faster.
eInvoicing in general means to electronically share and display invoices to the customers. It helps in automating the invoice delivery, reducing the chance of physical damages to the invoice, and ensuring easy access at lower costs. Here are ways to enable einvoicing.
Automated Invoicing via email– Sending invoices through emails to each customer can get tedious when it has to be done manually. The HighRadius RadiusOne eInvoicing and Collections App enables mid-sized businesses to automatically send the invoices to their customers via email without any external effort. With this technology, the AR team can access all the invoices across customers with a single click, send the email correspondence with attachments en masse, and keep track of invoice delivery.
AP Portal Integration– AR analysts have to push invoices or account statements into customer portals, accounting software, or AP portals manually. This gets very complicated when the volume of invoices increases and the statements have to be uploaded in bulk. Adaptive AR solutions can help mid-sized businesses to easily post the information on AP portals for the customer to view and make payments conveniently.
Using the techniques mentioned in the previous section, the whole process of invoice handling and delivery can be automated with less operational expenditure. And that’s not just it, there are more benefits that you can achieve by adopting einvoicing.
Let’s take a look at the benefits of einvoicing.
Since the analysts do not have to devote their time and effort in manually aggregating data, sending the invoices to individual customers, and rectifying errors the AR can be closed faster, thus reducing the overall DSO.
It is evident that the AR processes have been negatively impacted by the manual invoicing process. As an alternative approach towards the AR and AP processes, einvoicing has been significantly more impactful to turn the tide towards positive results. It is cost-effective, takes less time to process, closes AR faster, and reduces DSO.
Take a few minutes to help us understand the problems you face with your current process:
Want to learn how to enhance your einvoicing adoption? Check out this blog on 6 Best Practices To Boost eInvoicing Adoption
HighRadius RadiusOne AR Suite provides the complete eInvoicing solution designed to automate your invoice delivery and empower customers with a self-service portal to manage, track and pay invoices. It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, Quickbooks, and scales to meet the needs of your order-to-cash process.
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