With escalating postage and mailing costs any company that sends out bulk mail such as customer letters, invoices and statements requires the flexibility to adopt a combination of either electronic and paper or solely electronic mailings.

How do you implement e-billing?

Firstly it helps to understand what the definition of e-billing is.

e-billing, e-invoicing. Which is it?

E-billing is often referred  to as e-invoicing and customers often say “we are sending out invoices” so what is the difference?

The use of the two terms depends on your perspective as a buyer or a seller.

If you are buying in services managing incoming invoices within the accounts payable department the electronic invoicing process is part of the order to pay process and is e-invoicing.

E-invoicing is a buyer centric model where the buyer actively encourages its suppliers to send them electronic invoices.

If you are selling services and you are sending bills out to your customers via the accounts receivable department the electronic invoicing process is part of the order to cash process and is called e-billing.

E-billing is a supplier centric model where the supplier encourages its customers to receive electronic invoices instead of paper based ones and is less complex to implement than e-invoicing.

In both cases, invoices are processed but the difference is that those invoices that are inbound are referred to as e-invoices and those invoices that are outbound are e-bills. In each case invoices are processed but whether you are a seller or buyer determines whether the process is B2B e-invoicing or B2B e-billing.

Many companies and organisations alike will operate a combination of both the above processes but the functions may not be electronic or automated and likely to be manually intensive.

How do you adopt paperless billing?

How do you adopt paperless billing?

One of the first challenges presented by the customer is: ” it just won’t work our customers like paper too much!” to which my response “have you asked them?

If you want to achieve significant customer adoption then you don’t ask you have a strategic, planned, well thought out campaign to turn off paper and get your customers accepting e-bills.

For more information call us now

Here are 10 top tips to achieving ebilling uptake!

1. Have a clearly defined idea and strategy as to how you intend to implement e-billing
2. Do not think that by having a customer portal on your website where customers login and download their bill will drive your customers in droves to click and register so they can collect their bill. It wont work! Its a bit like asking your customers to drive to your reception and collect their invoices. In reality, they’ll do nothing because a customer portal requires registration, password and a download
3. Think PDF, not a PDF attachment to an email but a PDF that is emailed to your customer, think engaging, personalised and interactive information that incorporates facts, figures andpersonalised marketing messages, are secure and has embedded data which can be extracted out of the PDF
4. Have a clear strategy for collecting email addresses
5. Use your website to drive paperless billing and to advise customers how easy it will be for them to switch off paper
6. Use messages on all your printed invoices, statements, remittances and envelopes to turn off paper
7. Have a sign up process on your website, on your paper invoices and statements
8. Use an email pre-registration campaign for opt in and opt out to encourage the take up of paperless bills
9. Use any marketing collateral sent out to advise customers you are moving to paperless billing to drive the message home
10. Use the process to demonstrate your company’s on-going commitment to being green

How successful was it?

Can e-billing work for the SME or is it the sole preserve of the bigger corporations and Utility companies?

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Many organisations are challenged by wanting to break free from invoice processing which can be a slow and costly paper based system.

Accounts Payable departments are constantly being challenged to cut operating costs whilst ensuring invoices are paid promptly. Manual AP processes are costing companies on average £2-£4 per invoice that’s a staggering on-going cost for a company who may be thinking they are managing the invoice paper flow!

A typical manual process includes:-

• Invoices come into the company from different suppliers or cost centres in different layouts and delivery formats – post, fax, email, EDI
• They are forwarded to the relevant person responsible for that invoice
• There is a longer lead time due to manual routing, processing and sign off procedures
• Inefficiencies due to time spent matching the invoice to the Purchase order, verifying, approving and signing off for payment
• Inability to maximise discount benefits associated with early payments
• If it exceeds the company’s limited amount it may well have to go to senior management for verification
• If approved the invoice is then input into the accounting system ready for payment
• Archive costs for compliance and accounts audits

Typically, there may well be invoice queries, is the vendor valid, is the invoice correct and does it match the PO or is it a duplicate invoice?

Why automate?

1. By automating the process you gain a complete overview of the AP function using an end-to-end invoice management system of all processes and any financial implications.
2. By capturing the invoice information using an intelligent capture tool allows extraction of invoice data whilst at the same time updating your ERP accounts system with no manual entry
3. Consolidation and reconciliation of purchase orders, invoices and payments are automated which helps manage allocations, cashflow and payments
4. Invoice processing automatically matches and verifies scanned invoices with PO’s
5. The invoice process is improved because it is centralised so up to date live information is made available to the accounts team at every stage of the AP process

How does adopting an AP strategy reduce my paper flow?

It is the start toward adopting an ebilling strategy for your organisation.

Automating the processing of invoices and choosing to integrate a straight-forward workflow and document management software with your existing systems will remove manual and repetitive workloads.

Using a centralised accounts payable process integrated into your current systems provides:-

• Automatic allocation of the right invoice to the relevant transaction
• Automatically post invoices for payment
• Automatically queue exceptions for handling
• Deliver information on exceptions to the AP desktop
• Make payment status available to everyone instantly
• Adopt a push ebilling strategy where your customers don’t have to come to your Portal or website (Pull ebilling)

What are the major benefits?

1. Reduce invoice processing costs
2. Time savings
3. Exceptions resolved quickly
4. Supplier conflict resolution
5. Early payment discounts
6. Reduced supplier inquiries
7. No double handling

Do you have a complete view of your AP process?

• Do you wish your accounts payable function was a streamlined automated function giving you total control?
• Do you know how many invoices you have outstanding?
• Do you know how much money you owe?
• Where in the system are the exceptions and and how many?
• Who are the problematic suppliers?

Digital Print Management provide open solutions and our systems can be extended to include the automation of any business process.

If you want to discover how easy the transformation to an automated Accounts Payable system can be then get in touch.

COMING NEXT IN OUR SERIES OF ARTICLES FEATURING INVOICE PROCESSING WILL BE ACCOUNTS RECEIVABLES AND WE WILL SHOW YOU HOW TO SPEED UP THE PROCESS OF ALLOCATING YOUR PAYMENTS.

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The post Invoice Processing. 5 Great Ways to Reduce Your Paper-Flow appeared first on Digital Print Management.

Electronic billing can effectively reduce costs as long as there is a clear strategy of ensuring customer adoption.

This is the second part in the series of How to speed up your document processing!

Let’s define what e-billing isn’t! It’s not sending emails with attachments such as excel, word or PDF these are not considered e-bills.

E-billing is the electronic transmission of formatted data between a sender and receiver and requires that the format is machine-readable like XML or UBL to be able to exchange data. This means that there has to be integration between the senders and receivers I.T. systems or the usage of a third-party platform to connect sender and receiver.

How does e-billing reduce costs?

The whole point of e-billing is to reduce the costs associated with the manual intervention of shuffling paper and resolving missing or invalid data on the invoice.

E-billing has come along way in the last few years but still only represents a small percentage of the total numbers of invoices processed annually across Europe. Deutsche Bank research showed that 5% of the 30bn invoices processed in Europe in 2010 were electronic leaving 95% of invoice processing still very much a manual entry process which is time-intensive, resource-sensitive and prone to human errors.

One of the main reasons e-billing fails and the take up of a paperless solution is lacklustre is as a result of a Company’s e-billing adoption strategy.

The solution on offer can have excellent features, outstanding customer benefits, offer the promise to reduce costs which will benefit your bottom line but if your customers don’t want to adopt e-billing as a viable alternative to your paper bill then your e-billing offering will crash and burn and end up by being an additional cost and a business process that requires ongoing maintenance.

If you are serious about creating a paperless billing solution you must have a clear strategy that leads to the turning off of paper for your customers and be almost single-minded in the adoption of e-billing.

Ideally, you want an immediate return on investment when you’ve made a conscious effort to move to an e-bill solution and a decrease in operational costs associated with producing, printing and distributing paper bills. Sadly, this is rarely the case.

Banks, Companies, Financial Institutions have made massive investments in their websites trying to drive customers to an electronic option but these sites are failing to drive customers to adopt an electronic option.

Why?

Because websites are forcing customers to come to a website portal with a request to register and then collect their invoices. Therein lies the problem.

There is a natural human resistance to have to take the time to go and collect a bill that has been emailed to them.

Why would you go and fetch a bill from a suppliers website? The onus is on the supplier to make it easy for the purchaser. Website collections require a one-off registration process, a user login and a password?

What happens next time when the user forgets the password? We are besieged with trying to remember passwords for this and that so make it easy for your clients.

Would you drive your car to your suppliers to collect an invoice for your company? 

Probably not!

Customers don’t opt for web-based presentment to collect their bills and web portals have not succeeded in driving customers to want to adopt an e-bill instead customers prefer the convenience of receiving a bill in their inbox e- mail.

How do you ensure your e-billing strategy is a success?

1. Find an advisor who is an independent expert on the understanding of the billing outsource process
2. Request an initial consultation to determine your current position and what you want to achieve
3. Have a clear strategy for collecting email addresses
4. Use your website to drive paperless billing
5. Use messages on all your print-based invoices, statements, remittances and envelopes
6. Have a signup process on your website, paper invoices and statements
7. Use an email campaign for opt-in and opt-out to encourage the take up of e-bills
8. Use any marketing collateral sent out to advise customers you are moving to paperless billing to drive the message home
9. Use the process to demonstrate your company’s on-going commitment to being green
10. If you use/have a call centre ensure staff are made aware to prompt customers of their email addresses and have a process of collecting/managing them
11. Use IVR (interactive voice response) to prompt customers when they are holding on to talk to an advisor
12. Have an internal manager or champion of the e-billing process to ensure that the project is managed to its implementation

What do you think about e-billing? Has it worked for your company?

Have you converted all your clients to e-bills?

Please leave a comment and let us know.

Contact us for a free and independent discussion on how e-billing can save you time and money!

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