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Mobile Payments

The Lifecycle Of A Single Invoice And What It Costs Your Business

The invoicing process, however, is time-consuming and, even worse, costly. This can be detrimental to a business where success is based on sales.

The Lifecycle Of A Single Invoice And What It Costs Your Business.png

The invoicing process is time-consuming and, even worse, costly. This can be detrimental to a business where success is based on sales. So what exactly is the invoicing process and how much does it really cost?

Emerging Costs From The Start

From the moment a customer makes a purchase or puts in an order, the invoice lifecycle begins. If an order summary or purchase order is desired, these documents are copied and kept on-hand to later incorporate into the invoice itself. Supplemental materials, such as receipts or terms and conditions in case of an unsatisfied customer or return, are also printed and delivered.

While the process is very straightforward at the beginning of the invoicing process, costs add up quickly. The initial printing of order summaries or purchase orders can eat up internal time and resources. This can heavily impact business performance due to the volume of sales one might receive.

SEE ALSO: Improving Operational Efficiency and Data Security of EBPP with Mobile Payment Processing

Consistent Labor And Printing Expenses

In the case of client organization issues or improper invoice management,  invoices can  become lost or damaged. The costs associated with unpaid invoices, in those circumstances, require manpower and labor time on both the client and the issuing business to track down the invoice and resolve the payment.

At the step of the invoicing process, there's also more physical correspondenceThe client receives reminder letters, copies of the original invoice, or a new invoice with possible late fees being issued by the supplier’s accounting team.  This results in more expenses, with additional printing and labor costs.

When problems associated with print inclusive processes persist, suppliers lose a significant chunk of earnings due to their services not being paid on time—if at all. The internal resources needed to manage and resolve lost or misplaced invoices can also be taxing on team members. 

The Expense Of Multiple Invoice Lifecycles

If an invoice is correctly handled by both parties’ respective staff, then the lifecycle is ready to come to an end—almost. Once payment is received, this information needs to be documented and copied, and a receipt will need to be mailed to the client.

However, in the case of part-payments or payment stages, there can be multiple invoice lifecycles. Though this depends on the agreement with the client, suppliers should be aware that additional payment stages  require even more costly printing and labor costs.  

Digitizing And Decreasing Invoicing Spend 

Digitized payments have eliminated the surplus of printing costs, also cutting down on invoice related labor. All invoicing is handled electronically, which brings several crucial benefits to both businesses and clients.

Invoices are stored securely, significantly decreasing the risk of an invoice become lost or damaged. Electronic invoices are easily delivered, and radically reduce payment turnaround. Even better, electronic invoices result in consistent, reliable payments. Costs from the traditional invoice lifecycle are eliminated, allowing money to be spent improving the business and to go toward profit.

SEE ALSO: The Mobile Revolution: How Mobile Payments Are Redefining B2B Transactions

How to Bring Digitized Payments to Your Business

PayApp™ helps your businesses overcome existing hurdles to operational efficiency in invoicing and payment processes by combining the power of mobile B2B invoicing and payment technology with financial data exploration and analysis tools.

This process is made incredibly simple for time-starved business owners. Contact us to get started with a mobile payment system that will transform your billing and payment processes today.

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