Automating Invoice Management with B2B BNPL

Although the need for efficient B2B payment processing is higher than ever, many business models still rely on outdated, manual invoice processing methods that are time-consuming, and error-prone that limit growth. Studies reveal that manual invoice processing can cost businesses an average of $15 per invoice, with an average time of 14.6 days to process a single invoice manually. This inefficiency not only ties up valuable resources but also negatively impacts cash flow which can strain business relationships.

Thanks to innovative B2B payment solutions like Fluid, there's now a more powerful way to automate and streamline invoice management, changing how businesses handle their B2B transactions. Let's dive in!

B2B BNPL: A Catalyst for Automation

B2B BNPL solutions offer a powerful antidote to the challenges of manual invoice processing. By digitizing invoices and integrating with existing accounting systems, B2B payment platforms automate key steps, namely:

• Automated Invoice Creation and Delivery: The BNPL online platform automatically generates and sends B2B invoices to your business customers, eliminating the need for manual creation and reducing the risk of errors.
• Real-time Payment Tracking: Both you and your B2B buyers can track invoice status, due dates, and payments in real-time through the payments portal. This transparency improves communication and helps avoid late payments.
• Automated Payment Reconciliation: Your B2B BNPL provider automatically matches payments with corresponding invoices through its systems, streamlining reconciliation and freeing up your team from tedious manual tasks.
• Seamless Integration with Existing Systems: One of the biggest selling points of automating B2B invoice management is the ease of integration with your existing setup. For example, Fluid effortlessly connects with your existing ERP and accounting systems to ensure a smooth workflow that causes no disruptions in your B2B transactions.

Key Benefits of Automating Invoice Management with B2B BNPL

Automating your invoice management is more than just digitizing manual processes for your invoices; it's also about creating a streamlined, efficient system that helps your B2B business to thrive. Here's how:

• Reduced Costs: Manual invoice processing involves hidden costs that can significantly impact your bottom line. Think about the time spent on data entry, correcting errors, chasing down approvals, and reconciling payments. These tasks translate to labor costs and increase the likelihood of errors, leading to even more time and money spent on corrections. B2B BNPL solutions automate these processes, eliminating the need for manual intervention and significantly reducing the cost per invoice.
• Improved Accuracy: Human error is inevitable in manual data entry. A misplaced decimal, an incorrect invoice number, or a simple typo can lead to a cascade of problems, from payment delays and frustrated vendors to accounting discrepancies and compliance issues. Automated systems minimize this risk by ensuring accurate data capture and reducing the need for costly rework.
• Faster Processing Times: Time is money, and slow invoice processing can create bottlenecks that impact your cash flow. Automated invoice management expedites the entire invoicing process, from invoice generation and approval to payment processing and reconciliation. This leads to quicker payments, improving your working capital and strengthening your financial stability.
• Enhanced Visibility: In the past, gaining a clear picture of your financial health often involved sifting through stacks of paperwork or navigating complex spreadsheets. B2B BNPL solutions provide real-time dashboards that offer a comprehensive overview of your invoice status, payment schedules, and outstanding balances.

Fluid's Invoice Automation: A Closer Look

Fluid elevates B2B invoice management by providing a comprehensive suite of features designed to streamline your financial operations, providing unparalleled control and visibility:

• B2B Sellers Portal: Fluid's centralized portal provides a comprehensive overview of your invoices, payments, and outstanding balances, all within a single, intuitive interface. This eliminates the need to juggle multiple spreadsheets and systems, saving you time and reducing the risk of errors. You gain a clear, real-time picture of your financial health, allowing you to make informed decisions.
• Instant Payment Notifications: Fluid keeps you informed about your cash flow with real-time payment notifications and breakdowns of each business transaction, including invoice ID and chosen B2B payment methods. These instant updates eliminate the need for manual tracking and reduce anxiety around payment cycles, allowing you to focus on other critical business activities.
• Apply For Credit For Your B2B Customers: Fluid simplifies credit approvals with its intuitive drag-and-drop feature, accelerating the sales process and improving customer satisfaction. This streamlined credit application process not only enhances efficiency but also provides a competitive edge in the B2B marketplace.
• Tracking & Aging: Fluid allows you to track real-time payment status, due dates, and payouts to stay ahead of deadlines. This feature allows you to quickly address outstanding invoices and mitigate potential bad debt, for healthy cash flow management. Furthermore, you can easily manage your aging reports by assigning sales representatives to specific customers, promoting accountability and personalized customer service.

The Burden of Manual Invoice Processing

As we've seen, manual invoice processing is a notorious time-sink, prone to errors and delays. In fact, DocuClipper found that about 39% of invoices contain errors. This inefficiency not only strains resources but also creates a ripple effect of problems, including:

• Lost Productivity: Employees spend countless hours on tedious manual tasks, diverting their attention from more strategic activities. Studies show that 56% of respondents spend more than 10 hours per week processing invoices and administering supplier invoice payments.
• Increased Errors: Manual data entry is susceptible to mistakes with over 39% of invoices containing errors, leading to inaccuracies, payment delays, and potential disputes.
• Poor Visibility: Paper invoice systems lack transparency, making it difficult to track invoice status, identify potential bottlenecks, and manage cash flow effectively.
• Strained Supplier Relationships: Delayed payments due to inefficient processing can damage relationships with suppliers and even impact your ability to secure favorable terms in the future.

Conclusion

Modern B2B invoice management demands agility and efficiency. While manual invoice processing may have been the standard in the past, it now presents a significant obstacle to growth and profitability.

By automating your invoice management, you can unlock significant benefits that extend far beyond cost savings. Improved accuracy, faster processing times, and enhanced visibility all contribute to a more streamlined and efficient operation. This, in turn, frees up valuable time and resources, allowing you to focus on what truly matters – growing your business and fostering strong relationships with your customers and suppliers.