Smaller companies aren't commonly thought of as the most innovative businesses or those that are readily willing to spend whatever capital they need to produce merchandise or invest in new technologies. Those titles are usually left for large corporations that have money to burn and a loyal following that's been around for a number of years.
Small businesses tend to have more at stake when they make corporate decisions. However, they can play with the big boys by implementing the right tools and programs within the office. Namely, if they embrace electronic workflow strategies, they can not only save money, but they are also able to compete on a new level.
In fact, after launching programs like document management software, leaders are able to cut down on the time invoices and other financial records take to be processed, which can place a business leagues ahead of their biggest competitors.
So, if small business owners think of it this way, digitizing is almost like a no-brainer. But if they still need some extra motivation, there are a few example of advantages a startup can see if they embrace electronic invoices.
Cost-savings are almost immediate
Sure, upfront, digitizing is not going to be free. The company is going to have to invest in the management programs and scanners in order to place documents online, as well as dedicating the man hours to enable the process. However, that's really the only time digitizing will cost money. Owners wouldn't have to maintain paper files in storage facilities any longer, nor would they have to use printers - and therefore additional electricity, paper and ink - with such frequency.
At the end of the day, TechRadar said that the cost savings can be massive for small businesses. Turning to electronic invoices alone
"Those using e-invoicing can get more than the regular rates of 80 to 90 percent of the value," the news provider asserted.
Better cash flow
Placing invoices on an electronic platform can also help companies take control of their finances in real time. Sending out paper invoices can take days and financial transactions can take a long time to be processed. This means that it can appear that the business has more money than it actually does, which can spell trouble when the transactions finally go through.
Basware reported that the
This is true not only within the small company, but for whichever parties they do business with, the news outlet added. Resolving billing disputes or roadblocks is also made much simpler because of the transparency on both ends, leaving everyone happy.
Enjoying the best of both worlds
One of the best things about digitizing is that
Tying invoices into electronic workflow is probably a lucrative idea for any business out there, but leaders might not be comfortable doing the same with accounts payable or receivable, for instance. And that's alright, according to Yahoo Small Business.
"For businesses wanting to digitalize, but afraid too many parts of their network will not be open to the technology, there are options available to allow paperwork to be digitally integrated," the news source explained.
Administrators simply have to make sure they're investing in worthwhile programs and that all employees are on the same page. This way, not everything has to be digitized, just the best and most beneficial aspects.