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Minimalism is all the rage these days and for a good reason, it gives one freedom from clutter and time-wasting activities. More than a lifestyle, minimalism is a mindset. But how does it apply to business? Transitioning from manual paper based invoicing process to a paperless invoicing system is one way in which business can embrace minimalism.

Paper based invoices create a lot of clutter, paper waste (which is not to mention not environment friendly) and an added task of filing and maintaining the entire paper trail, more so in invoicing process. Businesses are therefore embracing digitization for key-operational processes such as human resource, finance, procurement and more – Paperless Processes is the future.

One of the key processes that involves a lot of paper work is invoicing. Transitioning to a paperless invoicing or E-Invoicing (electronic invoicing) can help business streamline processes and make it accurate and agile.

With more and more companies striving to paperless automation and digitize their invoice process and go paperless, the Global E-invoicing market is projected to be worth US$ 35.9 billion by 2028.

Are you as a business still stuck with manual paper based invoicing and grappling with endless challenges associated with it? It’s time to move to Paperless Invoice Processing and make it streamlined, efficient, and agile. Wondering where to start? In this blog we guide you step by step on how to transition from Paper Invoicing to Paperless Invoicing. So, let’s get started.

What is Paperless Invoicing?

Paperless invoicing aka E-invoicing refers to the method of creating, sending, receiving, and processing invoices through a digital medium such as email or Invoice Processing Software. As opposed to paper invoicing that rely on physical documentation, E-invoicing leverages electronic systems and automation software to handle invoice processing, including the use of electronic invoices.

Invoices are created electronically and sent to the concerned party via digital channels such as an email, online portal, or an electronic data interchange system.

Unlike paper based invoices, paperless invoicing ensures that the invoices created have a standardized structure and format so as to seamlessly integrate with accounting software or any other financial management tools a business may be using.

Paperless Invoice Processing Solution

Invoicing process is a series of steps starting from receiving an invoice from a supplier and ending with paying them. The invoices received could be hard copies (printed on paper) or a softcopy received on email as a PDF, either was the invoices have to be entered into a company’s accounting system either manually or automatically. Paperless Invoicing process involves the following steps:

Invoice receipt
Invoice verification
Invoice approval
Invoice payment

Paperless invoice processing entails migrating all manual paper based accounts payable processes to an electronic or digital process comprising invoicing, data storge, invoice matching and approvals, compliance with tax laws, and more. Zycus, provides an intelligent AI-powered E-invoicing Software which enables companies to implement a touchless invoice processing system, portal based automated invoice generation, three way matching, and adherence to compliance capabilities.

Businesses can create, send, receive, and manage their entire invoice processing electronically eliminating the need for paper-based invoicing and the cumbersome task of manual data entry. E-invoicing software enables a business to optimize invoice processing costs, shorten the payment cycle, and make invoicing more efficient.

The future is paperless accounts payable process.

Read this whitepaper by Zycus to navigate the transition from paper based to paperless invoicing and transform your accounts payable into a cost-effective function.

Benefits of Paperless Invoicing

1. Efficient Processes

Manual invoice processing means your team spends a considerable amount of time doing the same tasks over and over. Manually entering invoices is not only time-consuming but also fraught with errors such as duplicate payments, missed entries, incorrect information entered, human oversight, and many such errors.

Moving to a paperless invoicing means eliminating redundant and repetitive routine tasks by automating them, reducing or eliminating human errors which makes the overall invoice processing cycle faster and efficient.

By going paperless and investing in an AP automation software, companies can process

2. Cost-effective

The cost savings of a paper vs paperless invoicing is something businesses often fail to understand. Not only do you save on costs like printing, cartridges, paper, you also save on the costs of storage facility which you will have to maintain to store all the files and paperwork. Not to mention the labor costs and time spent on systematically filing these documents.

The time and manpower can be utilized on more important business functions. By switching to digital invoices and a paperless invoicing system, a business can save up to 49% on invoice processing costs. Once you go digital, you’ll manage your purchase orders more efficiently and enjoy a faster invoice approval process. Track Invoice Status With the right program, you can create a template for each invoicing document and track its status.

3. Streamlined Workflows

Digital paperless invoicing streamlines and expedites invoice processing time by efficiently managing invoice data electronically. Invoices received can be matched as per internal policies and lined up for approval, approving authorities get system generated alerts ensuring that approval are done on time. All compliances can be adhered to and any exceptions flagged in the system.

Timely or early payment of e invoices can enable businesses to leverage early bird discounts which in turn can positively impact cash management and supplier relations. From the suppliers standpoint POs can be converted in to invoices and sent on time, any disputes whatsoever can be resolved in real-time. All of this together makes your invoice processing streamlined and in the long run

4. Sustainable Business Practice

Switching to paperless invoicing implies saving a lot of paper and other physical resources like files and other stationery. Not only is this good for the business but also for the environment at large, given the carbon footprint a business is able to reduce by eliminating paper use and physical storage facilities.

Switching to a cloud-based AP Automation Software like Zycus helps businesses save precious real-estate, documents can be accessed anytime anywhere with ease, and there is no risk of paperwork getting lost.

Disadvantage of Paperless Invoicing: Manual Data Entry

Despite being a convenient option, transitioning to paperless invoicing for incoming invoices requires internet access. Though the internet penetration is deep, as per reports 5.18 billion people globally have access to the internet as of 2023. This implies that nearly 1/3rd of the global population still has no access to the internet

Paper vs Paperless Invoicing

1. Format and Storage

Paper invoices as the name suggests are invoice hard copies printed on paper and need to be properly filed which means they occupy storage space. Electronic invoice is a digital or softcopy which can be stored in a computer or on cloud and hence does not occupy any space. Transitioning to paperless invoices not only saves space but also enhances efficiency, accuracy, and is environmentally friendly.

2. Time and Mode of Sharing

Creating paper invoices is a manual and time-consuming process more so when transaction volumes are high. Next is sending the invoice which must be done via fax, courier, or post. Another alternative is to scan the paper invoice and share the invoice via email.

On the contrary digital invoice can be created quickly thanks to the ready to invoice templates most E-Invoicing software come with. The vendor can check the invoice on the system itself in real-time once its raised, streamlining the entire paperless invoice process.

3. Accuracy

Since handling paper invoices involves manual creation, the chance of human error is high and any mistake cannot be rectified. The chance of human error with paperless invoicing is bleak and errors if any can be easily rectified/edited in the system.

It’s a well-established fact that in today’s digital era paperless invoicing is the way forward, however the transition needs to be well planned with clear objectives in mind. Let’s walkthrough a detailed step-by-step process of transitioning from paper to paperless invoicing systems.

Steps to Transition to Paperless Invoicing

1. Define your Goals

As a first step clearly define your short- and long-term goals. Make sure the goals set are measurable and realistic. Set KPIs (key performance indicators) like average approval time, supplier discounts captured, days outstanding invoices to review periodically within the accounts payable process.

2. Set Expectations

Resistance to change is a given and basic human nature. Many employees might resist invoice automation and fear that they might end up losing their job. Communicate to them what to expect and take them onboard by explaining how the initiative would simplify their tasks and make it more efficient. If you plan to automate supplier onboarding, they need to be informed about this change as well. Additionally, highlight the benefits of a paperless invoicing solutions to showcase how it can streamline invoicing, enhance speed, and reduce costs.

3. Standardize Workflows

Create a standardized workflow, this is the most crucial step when transitioning from a manual process to automation. Make sure to include the tiniest of details like general ledger coding when laying out the workflow. Involve executives who actually do the data entry of invoice in the systems to ensure no detail is missed out. Implementing a paperless invoice processing system can revolutionize traditional invoicing processes by digit

4. Integration with Existing Systems for Electronic Invoices

Now that you have the entire process laid out, identify a software that fulfils all your requirements. The success of paperless invoice processing will only be successful if you implement a software that meets your requirements and can be customized to accommodate your unique business needs. Sending paper invoices takes more time than a digital invoicing process, often including many employee hours and resources. With an electronic invoicing system, your team can send invoices automatically, which speeds up the turnaround time for payments.

5. Digitize Existing Data

The next step is to feed all existing invoice data (purchase order, online invoices, and any other paper trail) into the identified software. Identify team members and create a plan with timelines to accomplish this mammoth task.

6. Integration with Existing Systems

Your paperless invoicing solutions needs to be connected with your ERP, Supplier onboarding portal, and other relevant systems already in use.

7. Training Employees

Perhaps the most important step, train your employees on the new systems. A system is only as effective as its users. People need to be trained and made comfortable on these systems else they might be tempted to go back to old ways of doing things which will make the entire transition futile.

Zycus AI-Powered E-Invoicing for the Win

Experience the true power of digital invoicing system with Zycus AI-powered Accounts Payable Automation Software and make your invoice processing faster and efficient. Reduce the average time to generate an invoice by 53% and cost per invoice by 65%. Harness the power of Zycus AI/ML powered invoice matching and approval capabilities which ensure that all internal policies and compliances are adhered to.

The Zycus Mobile Invoicing App ensures suppliers, buyers, and key stakeholders have access to invoices and other important information on the go. The e-Invoice Generation Solution ensures improved collaboration with suppliers, seamless integration with existing systems, accuracy, and regulatory compliance.

The Dynamic Discounting Software Workflow comprising an integrated supplier network platform, effective cash flow management flexibility, and intuitive dashboard provides a centralized view of all discount programs, enables users to approve early invoices to leverage discounts, and also gives a view of available capital for early payment discounts. Do more with Zycus paperless invoicing systems and embrace the paperless future.

Request a free demo now, and get started with strategic procurement today.

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