Bryzos on automating the invoicing process
Construction can be one of the most competitive industries, as the price of supplies fluctuates almost daily based on supply and demand. As a result, vendors and suppliers often have to negotiate the best prices they can find to get the job done affordably.
As with many business transactions, invoicing is one of the most important and time-consuming tasks in the purchasing process – suppliers want to be paid in a timely manner and buyers want to be sure to get what they paid for. Businesses have always employed accounting professionals who process orders and invoices manually, and without an efficient process in place, the workload can quickly become overwhelming and lead to errors or unhappy customers.
“It’s all that documentation or communication back and forth that operationally creates headaches for the person sitting there trying to make dollars and cents,” Shep said. Hickey, founder and CEO of Bryzos, an online marketplace. for third party buyers and sellers of steel products and accessories. The company acts as an intermediary that manages negotiations, disputes and payments using automated billing technology.
Businesses in many industries find automated invoicing a useful alternative to manual operations, not only for the reduction of errors and time-consuming tasks, but also for the benefits it can bring to buyer-seller relationships. increased efficiency of accounts payable. (AP) and Accounts Receivable (AR) on both sides.
“If the steps aren’t choreographed or sequenced correctly, you end up doing the same things over again and the more we can get a business to look in front of their business instead of sweeping what’s behind them, the more efficient they are. be like a business,” Hickey said.
Reduce billing friction
Automating the invoicing process can eliminate much of the friction organizations face and improve cash flow management. Beyond simply eliminating paperwork and errors, automation can lead to more operating capital, flexibility in payment terms, greater financial transparency, and increased profitability on the road through repeat business between trusted business partners. Yet many companies continue to use paper-based methods or several different AP/AR software solutions that do not communicate with each other.
“I think anyone who writes a check for business inherently knows the benefits of doing something a little simpler, because they do it all the time in their personal apps,” Hickey said. “I think the reason they don’t [in business] it’s not shouting at them loud enough, or showing that it leads to more profitability.
The usefulness of automated invoicing systems begins upstream in the process, he said. From the moment a customer places an order, purchase orders and purchase orders are transformed into packing lists, bills of lading, and ultimately an invoice, all of which are prone to error when done manually. A misplaced decimal point can trigger a ripple effect in many different documents, leading for example to late payments and orders as well as growing dissatisfaction and distrust between partners.
Automated invoicing systems not only process orders electronically and generate the documents required in a sales transaction, but they also verify the accuracy of the calculations involved, send the invoice electronically, manage the payment transaction between accounts and send the information to a company’s enterprise resource. planning solution (ERP) for processing and reconciliation.
The future of automated invoicing
As more companies replace outdated manual invoicing processes with automated solutions, Hickey said companies will begin to use the bandwidth freed up for better decision-making and to better organize their business relationships. .
In the short term, he explained that companies could start to see improvements in their capital, supply chains and overall reputation by extending credit to trusted business partners, for example. An automated invoicing system can provide more transparency into a company’s financial condition and creditworthiness, which can lead to better credit terms and ultimately more timely payments.
“If a credit source can see all the way down the chain of invoices or purchase orders, then they can feel secure that you have a good deal and are probably paying your invoices, so [they] feeling a lot better,” he said. “My biggest hope is that ultimately companies find what works best for them.”
Arguably the most crucial part of any business transaction is getting paid on time by the partners they do business with. Simplifying the many steps between an order placed and a payment made through automation can speed up this process and keep everyone involved happy.