![]() ![]() About half of the companies that use paper invoicing received audits, which cost them extra money in taxes and fines. But the bigger the company, the bigger the costs will likely be.Īccording to a survey completed by Sterling Commerce, each paper invoice error costs a company approximately $53 to fix. A small business, for example, may not spend too much money sending invoices. Of course, this all depends on a business’ size. Some other hidden costs with paper invoicing may also include: To put it simply, many companies spend a lot of time and money on paper invoices and billing. Many of the costs listed above are considered indirect costs, and are often not considered when a business is completing their financial books. Undelivered bills and the time associated with this.Lost invoices and the time associated with this.Customer service to handle calls and questions related to the invoices.Offering payment options such as debit, credit, which have associated fees.Here are all of the factors that go into paper-based billing and invoicing: As they say, time is money! There are also often bank fees associated with paper billing.īecause of the time it takes to create, process, and send a paper invoice, studies have estimated that a single paper invoice costs a business nearly $15 (and sometimes up to $30) to complete! Because of this, many companies have made the change to electronic systems in order to cut costs and speed up the billing process. Paper-based invoicing and billing also takes longer to process than that of electronic invoicing and billing. ![]() Each person that handles all of the paperwork and invoices must be paid, and all of the supplies surrounding it – including paper, printer, ink, stamps, shipping, labels, and packing – all must be purchased. It is important to note that paper-based billing and invoicing is quite expensive when you think about it. Why change it if it works? If you haven’t done so already, you might also be interested in our invoice type comparisons page for a list of different invoice types. Many companies around the globe are choosing to stick with paper-based billing methods, because that’s historically what has worked for them. While so many business systems have moved to electronic and online methods, there are still many companies that utilize paper invoices, paper-based billing systems, along with paper-based payment processing. ![]()
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