For better or for worse, more and more of the business world is moving online. Googling has replaced the yellow pages. Facebook and other social media platforms have disrupted traditional advertising and there are countless other examples of the ways the internet and computers have changed the business landscape. In the realm of business credit though, one of the most important has been the widespread use of electronic invoicing. Here are three reasons how adding electronic invoicing to your credit process will be beneficial to your business.
Decreasing your DSO
One of the most obvious and immediate benefits is the decrease in the amount of time it takes to get paid. While this will not be true for every company, most businesses will experience a drop in their average DSO. This makes sense when you consider that no matter how small, the time it takes to send an invoice in the mail is still lost time. This is only further compounded if any mistakes were made and additional mail must be sent back and forth.
Easier and More Reliable Access to Past Invoices
No matter how well organized your filing cabinets are, it is still possible to misplace or lose past invoices. There is also the time cost of having to sort through potentially thousands of paper invoices in the event you need to reference one. If you have electronic invoices, finding a specific invoice is as simple as searching through your emails or through an electronic portal. This should also help settle customer disputes far easier because you have electronic records and copies of the invoices they received and when they received them.
A happier customer is far easier to do business with than one who is frustrated with your billing process. Electronic invoices make the credit process far easier for them. In turn, this can translate to higher customer retention, fewer customer disputes, and less time spent correcting any billing mistakes for you.
While you will most likely find that not all of your customers will want to make the switch for one reason or another, for the majority of customers electronic invoicing will makes their lives far easier. More importantly, it will also help your credit process run more smoothly and efficiently.