Processing invoices manually is expensive, but up until recently, there wasn’t an exact dollar figure. The Australian Taxation Office (ATO) estimates it costs more than $30 on average to process a paper invoice and almost $28 for an emailed PDF version. A significant cost when multiplied per invoice/ per month/ per annum.
Research by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) provides more eye-opening estimates:
More than half of invoices are paid late (53%), 23 days overdue on average.
Outstanding invoices are worth $115 billion, or $52,000 for every small business in Australia.
Manual processes can also include hidden costs like late fees and missed discounts for early payment. These financial penalties chip away at hard-earned small business profits.
So how can your business get ahead and avoid being an expensive statistic? First, make all your invoicing electronic and get rid of the paper.
Invoicing has traditionally been a time-consuming and laborious process for small businesses, but e-invoices can help to reduce these costs by eliminating the need of manually rekeying or scanning invoices into financial systems. Instead, electronic invoicing (e-invoicing) enables your business to send invoices directly from one organisation’s financial systems to another. It’s a quick and cost-effective way to ensure invoices are approved, processed and paid in an accurate and timely manner.
Now guess the average cost per e-invoice? $10. E-invoicing systems could be three times more cost-effective, with those savings shared between the businesses, your clients, and finance teams.
We are here to support our clients moving to new accounting systems and ensure financial data is up to date & enable businesses to start using e-invoicing as soon as possible. Our preferred accounting platform Xero will keep data organised, secure and compliant in a cloud-based system. Lucent Advisory has been a Xero Partner since 2011, specialising in single-touch payroll systems, migration services, invoice processing and overall business advisory services. We understand the switch to a new accounting program can be a daunting one; our team is with you every step of the way.
Imagine how much easier your financial operations could be using just one account software platform and the savings from avoiding manual invoicing!
Get in touch with Fraser Barry & the Lucent team to start the digital transformation today.