The Mystery Unraveled

Gartner group reports that a business can save 10.1 million dollars by converting their invoicing to electronic means over the internet. However, what they are not saying is how to get business customers to adopt the solution. In other words, to broker that type of savings from an online billing solution you need to have customers use it otherwise it is a great idea with no value.

An EIPP system or Electronic Invoice Presentment and Payment system is a way by which the business customer can quickly approve and pay bills taking advantage of net 10 discounts and saving a stamp or two. The business providing the EIPP system takes advantage of an increasing trend to pay bills online. The system is excellent for the business and the business customer.

Business Customer Advantages

To effectively "sell" the EIPP system the business needs to focus on what their business customers are getting from the deal. A few possibilities include:

· Electronic Files that can be linked to update business customer accounting systems

· Reports that give the business customer feed back on product purchasing trends and possible opportunities to save through volume discounts

· Six, Twelve, or Eighteen month history of invoices online 24/7.

· Payment history detail

· Scheduled invoice payment as well as batch invoice payments

Business Savings

Now don't fret if you are a business looking to provide online invoicing, you have a significant savings in store even if only 15% of your customer base adopts the solution; however, trends and stats show that business to business electronic invoicing is adopted by a whopping 43% of the customer base in a very short time.

As a business you benefit from an electronic billing system in the following ways:

· Print and Mail costs drop dramatically. This is especially appealing since the post office continues to raise rates.

· Payments are made more quickly simply by removing the post office from the mix. A day's worth of invoices received 4 or 5 days faster is worth significant interest in the bank.

· Payment files can be linked to your accounting software reducing the "human error" saving you time and money.

· Disputes are handled online avoiding a hold on a $5,000 invoice over $100 dispute.

· Reminder e.Mails can be sent to the business customer reminding them of outstanding invoices and when they are due increasing the likelihood that payments will be made on or before they are due.

Case in point

A telecommunications company that sold services to businesses decided that they would only invoice electronically. Their competitors scoffed and said it would never work, the customer would want their paper bill. Still this company held to its electronic dreams.

In an industry where the average number of days a sell is outstanding is usually between 45 and 60 the all electronic invoice telecommunications company has an average DSO of 18 days! Now that is significant. What do you think their competitors are doing now? You can answer that one yourself.

One other case in point:

From the outside you would think that the truck rental business would only use a computer if forced. Where you may be right with other companies this particular rental truck company decided to use electronic invoicing for all of their independently owned and operated rental dealers.

The company had a specific goal - reduce the number of days it takes to get paid and streamline the invoice and payment process. Well as the saying goes, "the proof is in the pudding."

After implementation of the electronic invoicing system the truck rental company was able to eliminate high cost, difficult to maintain, printers and also reallocate and significantly increase the speed of payments received. True to form EIPP saved this company a ton of cash.

Bringing it All Together

So, for what are you waiting to start the electronic invoice crusade? Your IT department? If so, wait no longer, outsource. Though this may be the taboo word in some circles it is a true cost cutting lifesaver in most.

Yes the IT department can implement this solution; however, they are most likely involved in other cost cutting measures. When you use an outside vendor, implementation is quick, expertise is plentiful, and technology is proven.

EIPP is the next big thing in savings. Start today!
About the Author

Jeff Downs is an experienced billing solutions specialist and an expert in EIPP strategies and solutions. He helps companies slash the cost of billing through the effective use of electronic billing strategies. Take a look at the billing industries best practices at http://www.bestpracticesystems.com.