As the calendar changes, it is only natural to think about “Father Time.” This is especially true in accounts payable, where time management is a top priority for 2017. Time management and on-time payments are among the top accounts payable concerns of one-quarter (25 percent) of businesses surveyed by the Institute of Finance and Management (IOFM).
On-time payments eliminate late-payment penalties, strengthen supplier relationships, open the door to more early-payment discount opportunities (which, in turn, reduce an organization’s cost of goods) and provide buyers with greater leverage when it is time to renegotiate contracts with key suppliers. Ninety-four percent of businesses pay more than half of their invoices on time, according to IOFM’s research. Four percent of the businesses surveyed by IOFM said they pay all of their invoices on time. The rate of invoices paid on time grows by three percentage points for PO-based invoices.
Electronic invoicing solutions such as NexusPayables help you make better use of your time.
Electronic invoicing improves visibility and accessibility to accurate, real-time invoice and payment data. Dashboards empower users to identify potential bottlenecks and quickly take action. Senior finance executives can quickly access accounts payable cash flows, accounts payable process metrics, enterprise spend, and finance and administration Key Performance Indicators.
Treasurers gain insight into financial liabilities to implement cash management strategies more quickly and to optimize working capital. And electronic invoicing provides suppliers with visibility into invoice and payment status, eliminating the need for time-consuming phone or e-mail inquiries.
Additionally, electronic invoicing automates time-consuming manual processes, freeing staff to focus on value-added activities such as data analysis. For instance, NexusPayables automatically posts matched invoices, eliminating the need for operators to match and validate invoices and input invoice data into an organization’s ERP system. Similarly, electronic invoicing eliminates the risk of manual data entry errors that lead to delays. No wonder that more than one-third of organizations (37.2 percent) surveyed by IOFM say they are already are migrating suppliers to electronic invoicing.