One of the challenges that faces businesses these days is the cost of collecting on invoices. With more companies than ever before admitting to delaying their payments to suppliers, it is no wonder that experts believe that e-billing and payment infrastructure are the keys to reducing those costs and improving profitability and cash flow.
What Is E-Billing?
Although some people believe that e-billing is simply sending an e-mail with a PDF or Word attachment, this is not what e-billing means. E-billing refers to an electronic data transmission between senders and receivers in a machine-readable format, such as UBL or XML. The main point of introducing e-billing within an organization is to slash the cost of manually processing paper invoices and the hassle of invalid or missing invoice data.
Over the past few years, e-billing has progressed exponentially. Yet, only a very small amount of invoices that are processed have adopted this system of issuing bills. Many companies are still processing invoices manually. Not only does this take up a lot of time, it also opens up the risk of human error and inaccuracies.
How Does E-Billing And Payment Infrastructure Help?
By adopting e-billing and an innovative and streamlined payment infrastructure, a company can benefit in many ways, not least by reducing its costs for payment processing. The cost of collecting on invoices when manual processing is required may vary between companies. It will involve taking into account the cost of printing invoices and then mailing them. Of course, then there are the labor costs. E-billing is an excellent alternative since all of the manual processes are eliminated. This significantly frees up staff time, allows them to improve productivity in other areas, and eradicates the expense of printing, mailing, and maintaining equipment for those activities.
How Can Customers Benefit?
The benefits are not just for the merchants either. Customers, too, can benefit from an e-invoicing solution. They can be confident of receiving accurate bills. It eliminates the problem of having to raise payment disputes, and they can also be sure that their payment details are well-protected, and their payments are fully secured. They can also benefit from being able to pay for their bills via the method most convenient to them, whether it is a credit card, debit card or ACH payment.
Implementing An E-Billing Strategy In Your Company
If you are convinced of the benefits of an e-billing strategy for your business, there are a few steps to follow to ensure your success:
- Find a reliable e-billing provider, such as BilingTree, who can provide you with tailored solutions to meet the unique needs of your company.
- Put messages on every printed statement and invoice to encourage customers to adopt e-billing as their first choice.
- Encourage customers to sign up for e-billing through your company’s website.
- E-mail customers in a campaign to persuade them to opt into e-billing.
- Point out the environmental advantages to e-billing and promote your company’s eco-friendly stance.
- Use an IVR system to encourage customers to register for e-billing when they are on hold.
By following these tips, you can improve and streamline your revenue collection process while cutting your costs.
BillingTree is leading the way in the provision of quality merchant services. BillingTree provides innovative and cutting-edge payment processing solutions, including e-billing and payment infrastructure options, to suit the needs of all business types and sizes. We can supply you with a range of options to meet your requirements so that you can enjoy higher profits and more streamlined invoicing and payment processing for your organization, no matter how large or small it is.