We like to see things in black and white, but the truth of the matter is, there is a grey area when it comes to invoicing. How much does it cost to send out an invoice? Well logic would tell us to just do the math, so sharpen your pencil. A mailing envelope is around $0.07 each, and a piece of paper is around $0.006 each, factor in the average cost to print the invoice in monochrome (black and white) only is $0.05 each (this includes equipment, toner, and developer). Let’s add a stamp, so it can get delivered, at $0.49 each. You are at $0.616 each to send a one page document. Not bad; however, now you need to have an employee actually create the invoice, add the printer paper, export the print file to the printer, remove all of the documents from the printer, individually go through all of the pages to group them accordingly, add any past due or final notices appropriately, tri-fold each to assure proper fit in the envelope, address the envelope and affix postage. Whew! Oh, and don’t forget...you had to pay that employee to do all of these things
Bills are out now...time to sit back and collect on them, right? Ask yourself, did you make it very easy for your customer to remit payment back to you? Did you print on perforated paper so it is easy for them to remove and return the remittance coupon? Did you add a remittance envelope, so they don’t have to go track one down? If so, did you address that remittance envelope to insure proper delivery back to you? How about all of that white space on the back of the invoice? Did you use this space to answer your customers’ frequently asked questions, or maybe even to promote your services and products?
Let’s face it...invoicing is essential, but it is a pain point for most companies. According to IOMA’s AP Department Benchmarks and Analysis 2010, “The average cost of processing an invoice in an environment with a low level of automation can be up to 20 times greater than the cost of processing in an environment with a high level of automation.
Twenty times greater? What if I told you, that the employee you just paid to do all of your invoicing could log into a website and upload that same invoice file….and then be done? They would then have time to address other company and customer related tasks.
Don’t believe me? It’s true. Automating the manual task of statement and invoice generation and delivery is key to increasing AR, reducing DSO and boosting productivity. Couple all of those things, with the benefits of a well branded, customer effective document, featuring dynamic messages and custom formats. Is it the black and white answer we were looking for? No it’s not. It is the full color, dynamic, automated, all-inclusive, money-saving answer.
For any comments or questions, please contact:
330-342-0568 Ext 2.