Perhaps astonishingly in this age of digital automation, approximately 90 percent of all company invoices are still processed by hand. This antiquated approach can dramatically boost the direct and indirect costs associated with each and every invoice and credit memo sent, especially when costly errors and inconsistencies undermine the process. Many suppliers and retailers either fail to recognize these very real costs or shrug them off as inevitable. In reality, they could be harnessing iSBT’s automated system to cut per-invoice and credit memo costs and improve invoicing efficiency, allowing them to maximize every dollar of this operational area.
The Nature of the Problem
The most primitive form of invoicing is the creation and exchange of paper documents. This introduces significant direct costs, from printing ink and equipment wear and tear to paper and postage. The physical labor involved in creating, preparing, sending, and collecting such invoices and credit memos also adds indirect costs to the process. These expenses can easily cost a business anywhere from $12 to $30 per paper invoice on average.
Electronic invoicing can reduce much of this expense, but standard e-invoicing methods aren’t immune from costly problems either. Both paper invoices and e-invoices can incur hidden costs related to data entry and coordination errors. As long as suppliers and retailers maintain separate price books, the potential for mismatches can result in serious (and costly) discrepancies that take substantial time and effort to iron out.
Retailers and suppliers alike need to examine their current invoicing systems and experiences carefully to determine just how much money they may be losing to the process. Factors involved in making this determination may include invoice processing and mailing time, hours spent reviewing and correcting invoice data, cost of invoice shipping and storage, employee hours lost to invoicing procedures, and losses due to late charges, duplicate entries, or other error-based costs.
The iSBT Answer to Invoicing Issues
Nexxus Group iSBT not only places organizations’ invoicing processes firmly in the digital domain; it also eliminates many of the errors and issues that can occur in more ordinary e-invoicing systems. Users enjoy the following substantial benefits:
- Single-source payment consolidation: Nexxus Group iSBT enables all participating vendors to receive a single e-payment. This consolidated approach eliminates invoice processing costs.
- Price Book synchronization: NexxusGroup iSBT maintains a continuously synchronized price book between suppliers and retailers. This match ensures proper validation of invoices and payments against retailer sales costs, eliminating costly discrepancies.
- Headache-saving error detection: Nexxus Group iSBT’s synchronized invoicing and payment system catches data errors on receipt of sales, prior to payments generation. The system can identify issues such as missing stores, duplicate data, and sales volume anomalies in time to ensure that suppliers receive correct payment for every item scanned at purchase, thereby eliminating costly credit memos.
- Instant fixes for suppliers: Nexxus Group iSBT’s instant error identification and price book reconciliation fixes costly invoicing and credit memo errors before suppliers are aware of them, sparing workers from costly distraction and confusion.
Nexxus Group can help your company spend less time creating, processing, and correcting invoices so that you can direct that time toward more cost-effective tasks. Contact us today to learn more about iSBT.