Are Your Invoices Costing You More Than You Thought ?

i-Dynamics invoice costs

Posted by Lucy Beck on September 24, 2012

  There are some things you don’t mind waiting for, the weekly trawl round the supermarket with a screaming three year old, your yearly dental check-up, or the mother-in-law arriving for Christmas but physically entering data so you can pay your suppliers to get an up to date position on your accountabilities is not one of them. You need to pay your suppliers and you need to pay them on time to keep them sweet and co-operative.   We all know that within modern business speed and precision of information is a very valuable commodity. But for this to be true then why are so many companies still accepting manual data entry as the norm? Especially in the case of small businesses time is most definitely money and as manually entering data is an extremely time consuming process employee hours dedicated primarily to data processing can accumulate rapidly before you know it. To be tolerant of manual data entry is one thing but to know that you are forking out for someone to spend precious time doing it is an entirely different story. After all have you ever attempted to calculate your paper invoicing costs – don’t be surprised if it adds up to more than £20 to £40 per invoice. (Shocked ? Contact us at i-Dynamics and we can help you calculate what your invoices are costing you to process) A paper based invoice process can be severely time consuming. There are several formal stages that the paper invoice has to undergo before there is even a trace of an approval or a suggestion of a payment.  How long do you reckon your process is taking on average and how many undetectable employee hours are currently being spent on this process? Getting rid of the inefficient invoice processing past with its tower of paperwork can be a big step for many businesses. To move away from what can be considered the ‘norm’ and into the more technologically advanced realm of invoice processing and data capture can be a daunting prospect for any business. But if your business is a fish in shark infested waters time is of the essence and being hard pressed to do the everyday tasks your business was created for can leave you nothing but frustrated at the time spent on invoicing. So why wouldn’t you take the leap when the positives obviously outweigh the negatives? Time dedicated to manually inputting data can be delegated differently and much more valuably dispersed in order to effectively manage your business.  Get more aggressive pricing from your key suppliers in return for quick payment and perhaps you could use your cash in the bank more effectively if you had a more precise understanding and image of accounts receivable vs. accounts payable? The UK law in the provision of goods, facilities and services is due to be reviews and speed and time scale of which invoices are to be processed is going to be even more important. The law plans to allow businesses to be able to charge interest to others for late payments under the Late Payment of Commercial Debts (Interest) Act 1998. This further shows how the significance of invoices to be paid on time has doubled. After all who wants to be paying more on top of what they are already paying for supplies?