I get to talk to a lot of great people, some of which are responsible for making big decisions that can be a lifesaver for their businesses balance sheet. What I really enjoy is learning about a business and helping to identify areas that are ripe for cost savings but are sometimes overlooked.
For example, a question I get we get asked a lot is, ‘is eBilling right for us?’ In a poll I carried out on LinkedIn, the results show that just over 60% of respondents are still posting invoices, some of them in excess of 50,000 per month.
Obviously, there are the environmental implications, however, it’s the cost involved that can be huge.
This is how I broke the consequences down to one of the companies I am currently talking to who are currently posting 10,000 1-page invoices per month.
“Your costs for invoicing are in the region of £6,000. PER MONTH.
£72,000 PER YEAR.
Lost in posting invoices.
This includes the paper, envelopes, printing costs and postage. This does not account for the lease or purchase of the printer, or the staff costs to stuff the envelopes.”
Was eBilling right for them? It certainly looks promising.
It is not just the cost of posting invoices where we can save businesses money, we also help save time and space.
The biggest benefit of eInvoicing automation over some kind of simpler package that does not operate intelligently processing high volumes is the massive amount of time saved.
Not everyone measures this in numbers. Still, when you look at the number of full-time employees, some of our clients have redeployed, you will see that there is a bottom-line benefit to introducing automation.
It’s not just the ‘person hours’ – the processing time is faster with automation. Invoices can be produced in minutes, not days from when an order is placed or delivered.
Saving space has been a big theme for a number of prestigious clients we’ve taken on in the last year. Closing down warehouses with dusty back offices, surrendering leases on office space and moving to purpose-built hot-desk environments for a busy but smaller head office has shown me that space = cost in business.
Not only do you get to save space by refocusing your AR team, but also by enabling them to work as productively from home or remotely. One of our clients in the beverage manufacturing sector wanted a multi-site team from different areas of the business to work together more effectively.
We helped them do that, and it meant they could put their best resources – the real specialist credit managers in collections, into one department to handle a higher workload between them much more easily. By working together more closely, they came up with new ideas about making even more of a difference. Good things happen when you give people the tools they need to do a good job.
Getting rid of printers, and franking machines, also saves money – and that is something that we help a lot of our customers with. We take on the remainder of their postal invoicing for as long as it takes to reach their target % of eInvoicing. Our post room team are amazing, and our rates for postage around the world are extremely good.
People are always pleased to find out that basic things like a postal invoice or reminder letter can be cheaper with even less effort on their part.
Save money per invoice
We can calculate per invoice costs for you if you haven’t worked it out. There is a simple formula we use that gives you a figure with and without the ‘people’ costs of generating invoices and getting them paid. We have never had a situation where we could not save a business money on a per invoice basis by switching to us.
Even if your business uses some form of eInvoicing software, we are confident we can improve upon it. The savings are highest for businesses switching from paper to eInvoicing, or PDF to eInvoicing with portals.
Still, in reality, most companies have a mixture of methods in place and want to consolidate in one direction. That’s where we can really help.
Save money per month
For some of our clients, the savings they’ve made are so good; they say that each month they save money just by using Corrivo, compared to their older ways of working. That’s just on the process costs, not the people, office space and machines.
I’m pleased to say that the same client got a return on investment for the initial set up cost of coming on board with Corrivo in only a few months.
Save money in the long term
Our return on investment calculations is impressive. I say this with confidence. We’ve often had clients who have paid back their initial costs within 3-4 months. On top of that, the long term cost savings are really worth mulling over.
Fewer invoice queries, fewer copy invoice requests, faster payment and easier reconciliation all add up to less time on administration and more time to put into talking to late-paying customers, solving problems and reporting on results.
Why not put it to the test?
Here’s a challenge. If you think your accounts receivable and collections processes are good, see if they are so good that you could not save by switching to Corrivo. Drop me an email or reach out on Linked In, and I’ll take you through the savings calculation process.
I’d love to help you find a way to save your company money and make your colleagues’ lives easier, calmer and brighter this year.