Self Paying Transformation of your Invoicing Process!!

Introduction

The Account Receivables world is moving towards electronic payments. This not just improves the presentment of invoices and paying process for your customers, it also helps in improving the process of cash application and dispute resolutions.
Just like the B2C world, payments are moving to self-service in the B2B world as well. Just like you and I log in to utility portals to pay our utility bills, your customers should be able to see invoices and make payments using a self-service portal. They should also be able to dispute invoices if they want to.
The challenge in the B2B world is that effective customer management and payment collection across a large array of customers require an efficient system that enables self-service across the full cycle from communication of invoices to reviewing account status and invoices, to making payments using the payment method the customer prefers. A lack of self-service options to customers leads to the cost of managing and handling customers being absorbed by the organization, lowering performance and increasing DSO.
In my career as a solution principal and sales professional, one common reason for corporates not to use such a portal is the cost associated with it. Most of the corporations think that this is a very costly affair and is done by only big corporates. I would like to introduce you to a solution which will pay for itself in a few months.
HighRadius Electronic Invoice Presentment and Payment (EIPP) Cloud solution enables enterprises to deploy a self-service portal for their customers to review and pay bills online. Self-service enabling customers and eliminating paper invoices has a proven track record of reducing operating expenses by at least 30%. Additionally, enabling customers to pay via credit card, ACH or eCheck online can reduce Days Sales Outstanding (DSO) by 10%. A cloud-based solution available as Software-as-a-Service, EIPP Cloud is easy and cost-effective to deploy and maintain.

Key benefits of our solution:

• automates invoice transmission and speeds up payment (ACH, Credit Cards, eChecks)
• supports multiple payment processors out-of-the-box to enable a quick implementation
• supports multiple invoice formats and different modes of transmission (fax, email, portal, etc.) depending on the targeted customer
• efficient storage and retrieval of past invoices

With a solution like this you can expect:

• faster invoicing and payment collection
• better customer service
• improved profitability and cash flow
  • Reduction in DSO by 10%
  • Reduction in lockbox processing cost by 30%
  • Reduction in Billing cost by 50%
  • Reduction in AR department OPEX by 30%

Now the next question in your mind would be how it pays for itself and at what time. Below are the steps that help you calculate the same:

1. Calculate the average annual invoice volumes that you need to send to your customers
2. Multiply that number by 20% (assuming only 20% of your customers will adapt to electronic payment via the self-service portal)
3. Multiply this number by $0.75( you might replace it with your cost of printing and mailing )
4. What you get is annual savings(let’s call it X)
5. What you would pay will be between 40%-60% your savings
6. To Calculate the Payback Period:

*Y – one-time setup fee