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When it comes to digital transformation for any business, we recommend breaking it down into manageable projects and a good place to start is automated invoice processing.
The concept of automated invoice processing is a simple one: transforming manual data input and management into an entirely digital process (otherwise known as paper to digital). However, for many businesses the idea of transforming such an essential business function into an automated process can be intimidating, especially when this is the first step in a digital transformation project.
Transforming your invoice processes
Find out how to achieve an average 60% ROI by switching from manual to digital invoice processes in our published report
Manageable digital transformation
Digital transformation has become a well-known concept in recent years. The likes of Gartner and McKinsey business consultancies have been advocating for the benefits of a digitised future. And there is no doubt that for many businesses over the last few years, going digital has future-proofed their business model.
The events following COVID-19 have driven many businesses online, whether that’s D2C (Direct To Consumer) via their own ecommerce channel or via an independent marketplace such as Amazon. With a growing number of businesses now managing online sales of what traditionally have been products sold in bricks-and-mortar stores, many have been turning to supply chain technology to transform their manual processes and retain business agility into the future.
For some, this has meant adopting a scalable EDI solution in order to connect to large online retailers, such as Amazon, Wayfair, and eBay etc. For others, this has meant an overhaul of current business strategy, with manageable digital transformation projects, which target specific areas of inefficiency.
Our clients are seeing the vast benefits of automating their business processes: reducing the time taken for manual data input, cutting out inaccuracies and speeding up the order-to-payment process. Read our latest case study of a toy collectibles manufacturer, which leveraged a wider scope of EDI messages for frictionless business.
The main challenge for many businesses when looking at digital transformation is the question of where to start, how to build the business case and how to deliver ROI within an acceptable timeframe.
Where to start with digital transformation
The digitisation of Accounts Payable (AP) and Accounts Receivable (AR) department processes comes as a natural first step for most businesses embarking on a digital transformation journey.
Both of these teams are usually heavily reliant on the manual keying of invoice data, whether incoming or outgoing. This manual processing can prove costly and time consuming, with built-in delays to downstream procedures, such as approvals.
These inherent built-in delays have implications beyond direct costs. Delays in process mean organisations cannot benefit from:
Invoice discounting
Faster invoice to cash
Improvement in cash management
Supply chain finance
Read more about manageable digital transformation and improving business agility in our recently published report: Agile business in a time of rapid change.
The business case for automated invoice processing
The estimated cost of processing 24,000 invoices manually per year is £1.95* per invoice. By implementing Transalis eInvoice™ Automation this cost is reduced to £0.78 per invoice. Discover the savings your business could make by using the eInvoice Automation calculator.
With measurable ROI on average of 60%* delivered within an acceptable timeframe (oftentimes the same financial year), automated invoice processing has key benefits for the AP and AR teams.
The estimated cost of manually processing 24,000 invoices per year is £1.95 per invoice.
By implementing Transalis eInvoice™ Automation this cost is reduced to £0.78 per invoice. Discover the savings your business could make by visiting the Transalis website.
This potential saving derived from switching from a manual to automated process as demonstrated in the table opposite (Figure 1)
Figure 1. a visual representation of Transalis eInvoice™ Automation.
Delivering benefit within an acceptable timeframe
A typical automation project will take around 3 to 6 months to implement fully, following concept, mapping and testing. If businesses are smart and time their project correctly, the benefit of switching from manual to automated invoice processing can be realised within the same financial year.
eInvoice Automation is the latest solution in the suite of Transalis eInvoice™ products. To discover your potential ROI with automated invoice processing visit our eInvoice Automation page.
Transalis offers 4 bundled software solutions under the eInvoice umbrella (as shown below), suitable for all business sizes and unique needs. Whether you need automated invoice processing for both your incoming and outgoing invoices or have complex international tax regulations to comply with, we have a Transalis eInvoice™ solution to suit you.
eInvoice Software
AR Automation
Scalable digital compliance for outbound invoice processes. Build the ideal solution for your AR team.
AP Automation
Convert & integrate inbound files with 60-80% ROI. Ideal for AP teams manually processing 2,000+ invoices per month.
To discuss automated invoice processing with our knowledgeable team, give us a call on 0845 123 3746 (international callers on +44 1978 369 343) or email sales@transalis.com.
References:
* Estimated costs for manual processing of invoices and ROI modelling derived from consultation work undertaken by Transalis with a CFO panel and supporting reference material from Billentis report “The e-invoicing journey 2019-2025.”