The Accounts Receivable Challenge
Today, 95%* of customer invoices are still sent in paper format. Sending invoices in paper format implies using highly manual production and distribution processes that have a direct impact on company profitability. However, switching to electronic invoicing is not always easy as customer approval is necessary and compliance with local regulations must be ensured.
Five symptoms of poor Accounts Receivable performance
 High cost per invoice (delivery + archiving)
 High invoice-processing error rates
 Inadequate or non-existent reporting
 Lengthy cash collection delays
 Customer dissatisfaction
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The complexity of Accounts Receivable
The main challenge lies in the tedious or complex steps required whether sending paper or electronic invoices. Below we have listed common constraints faced by managers responsible for the invoicing process:
The paper invoice challenge
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Wasting valuable time and money printing: Printers monopolized for several hours or even days.
Dealing with paper jams and changing toner cartridges.
Significant costs include investment in hardware, maintenance, paper and toner.
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Human errors when folding and stuffing envelopes:
Matching envelope size to page count.
Finding room to store multi-sized envelopes.
Handling several pages manually presents a high risk of error - mixing up or even losing invoices.
Document folding must be precise to correctly fit into an envelope.
Using a folding machine adds to investment and maintenance costs.
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Complex management for cost-effective stamping:
Applying the correct stamp to the envelope weight can be a complex and time consuming process.
Renting and maintaining a franking machine adds to costs.
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Meeting postal service deadlines:
Low mail volumes require one person to drop the invoices off at the post office at the end of each week/month.
Even if the postal service picks up the mail, it can be difficult to meet deadlines.
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The electronic invoice challenge
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Managing several delivery methods and converting customers to e-invoicing:
Getting your customers to move to e-invoicing is difficult. It most likely involves changes to their system and processes which they may not be ready to make.
This may lead to customer relationship issues.
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Complying with country regulations:
The diversity of legal regimes between countries is high. Even when using e-signature, adhering to the European Directive and local regulations on e-invoicing requires the use of several digital certificates and processes to sign e-invoices.
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Archiving electronic invoices:
When electronic invoices must be stored in their original format, secured e-archiving must be ensured for years. This implies significant hardware and maintenance costs as well as the implementation of specific security processes.
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If you are experiencing any of these troublesome issues, please take a look at Esker Accounts Receivable solution.
* Billentis
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