Webinar: Kickstart Your E-Invoicing Project in 5 Simple Steps

8th June 2010 at 3pm GMTRichard Cogswell, Sales Director

Agenda

E-Invoicing Overview5 Simple Steps….

Success FactorsBenefits you can expect

Choosing the right solution

Planning your project

Defining your solution

VAT and compliancy

Rollout to customers & suppliers

E-Invoicing Overview

Some key points:

– 22% of companies use e-invoicing and only 5% of invoices are currently sent out electronically

– Only fully automated and integrated process yield true cost savings. Go beyond just saving paper

– E-invoicing can be deployed quickly and in a phased, modular approach for fast ROI. E.g. e-presentment then e-billing or e-invoicing

E-Invoicing Overview

Some key statistics:

– Annual savings of €200m across Europe are available

– Europe accounts for 56% of the global e-invoicing market

– B2B growth rate in 2009 was estimated at 50%

– B2B e-invoice volume is expected to reach 925m in 2010

– 1% increased usage could save 800,000 treesSource: Innopay E-invoicing 2010 Report

Demand rather than leadership

PERCEIVED BARRIERS TO ENTRY

E-Invoicing Overview

Why aren’t you already doing it?

Impact on internal resources

Concern about take up

High set-up costs

Priority of other IT projects

Complex VAT landscape

Demand rather than leadership

PERCEIVED BARRIERS TO ENTRY

E-Invoicing Overview

Why aren’t you already doing it?

Impact on internal resources

Concern about take up

High set-up costs

Priority of other IT projects

Complex VAT landscape

These barriers don’t exist!

E-Invoicing Overview

Now is a great time to start

– E-invoicing is here to stay

– European businesses are leading the way

– Cost savings are real

– Customers and suppliers are ready

– Compliance is simple (with the right partner)

– Start now…..

Step 1: Choosing the solution - AR or AP?

Some terminology

E-presentment- Presenting invoices online. One sided benefits

Electronic Invoice Presentment (EIP)- AR (Accounts Receivable) – outbound to customers- AP (Accounts Payable) – conversion of inbound paper- Benefits for both suppliers and buyers

Electronic Invoice Presentment & Payment (EIPP)- ERP Integration- Credit & Debit Card integrated solutions- Procurements cards- Benefits for both suppliers an buyers

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Step 1: Choosing the solution - AR or AP?

How it works - architecture

Point to Point

• Traditional approach• From sender to recipient• Agree protocol• High set-up costs• Not scalable• EDI, eBIS-XML etc.

Hub Technology

• Central Hub & Repository• Multi-protocol interfaces• Any to any format• Mapping to standards• Low set-up costs• Scalable• Expandable

UBL

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Step 1: Choosing the solution AR or AP?1

Step 1: Choosing the solution AR or AP?

How it works - AR

Sales Ledger

Customer Accounts or ERP System

Approve Authorise Payment

Trading Partner Accounts or ERP System

Render PDF

Image

Email

Email and PDF Image

XML Data

Web Interface Customer View

Web Interface TNC View

Digitally

signed

Customer TNC

AR Hub

EDI

Print & Post Partner

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Step 1: Choosing the solution AR or AP?1

Step 1: Choosing the solution AR or AP?

Benefits - AR

1

For Customers (Buyers)

• No manual rekeying• More efficient query process• No internal document routing• 24/7 availability• Payment options

For Suppliers (Billers)

• Cost savings on delivery• Cost savings on processing• Fast delivery to correct person• Reduction of DSO• 40% less customer calls

Step 1: Choosing the solution - AR or AP?1

Step 1: Choosing the solution - AR or AP?

How it works - AP

Webscreen PO Flip

AP Hub

Accept Confirm Approve

Customer Accounts or ERP System

Validation

Query

Match

Settle

Approve

Authorise

Enrich

Reject

Web Interface Supplier View

Web Interface Customer View

Supplier Customer

ebPrinter

Secure Manual File

Upload

Secure Automated File Upload

Paper Doc Scanning

Input

Su

pp

lier

Acc

ou

nts

or

ER

P

Sys

tem

WorkflowEngine

Digitally signed

Digitally signed

Supplier Connection

Options

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Step 1: Choosing the solution - AR or AP?

Paper to Data (invoice scanning)

1

Invoice to Payment (full AP automation)– Better visibility & control (identify

bottlenecks)

– Digitized approval process

– Eliminate geographical distances

– Eliminate paper from day 1– Faster entry into finance systems– Data archiving and full digital back-up

Step 1: Choosing the solution - AR or AP?1

Step 1: Choosing the solution - AR or AP?

Benefits - AP

1

For Customers (Buyers)

• Eliminate paper for day one• Cost savings on processes• Direct feed into ERP• Approval workflow solutions• Convert majority of suppliers

For Suppliers (Billers)

• Feedback on failed invoices• Faster acceptance• Faster query management• Faster payment• Better trading relationship

Step 2: Planning Your Project

Who should be involved?

– Project Sponsor/Owner

– Finance Director

– Project Manager

– Finance Senior

– AR/AP Clerks

– Marketing (Branding/Marketing Messages)

– IT (networks & connectivity)

– IT (ERP or Billing systems, or systems)

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Step 2: Planning Your Project

Run a workshop (£2,500)

– Plan your business case in a day

– Get everyone involved – buy in

– Identify existing processes

– Map out new solution

– Plan development, pilot and launch

– Negotiation of customer acceptance steps

– Identify and plan training requirements

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Step 2: Planning Your Project

Example Savings – AR (Source Billentis)

– Estimated Cost Comparison

Per paper invoice: €11.10

Per e-invoice: €4.70

Saving per invoice: €6.40 (57%)

– Estimated Savings

If a company sends out 250,000 invoices per year they could save €1.6m annually

Potential for ROI: Months

2

Step 2: Planning Your Project

Example Savings – AP (Source Billentis)

– Estimated Cost Comparison

Per paper invoice: €17.60

Per e-invoice: €6.70

Saving per invoice: €10.90 (62%)

– Estimated Savings

If a company receives 250,000 invoices per year they could save €27m annually

Potential for ROI: Months

2

Step 3: Defining Your Solution (Business Case)

Know your volumes

Know your costs….

For Suppliers (Billers)

• Printing and postage costs• Sales back-office• Debtor interest• IT development & operation• Payment fees• Customer requests

For Customers (Buyers)

• No of docs per person• Staff costs per invoice• Errors and cash discounts• Paper-based workflow • Paper archiving• Internal invoice copies

3

Step 3: Defining Your Solution (Business Case)

Example Business Case conclusions….

– Current paper-based processes are too inefficient & costly

– EIPP benefits are on financial, marketing & operations levels

– EIPP involves no costly upgrades to existing systems

– Web-based EIPP solutions allow all members of the supply chain to got involved in e-invoicing with no specialist training

– Cost-effective solutions are available to provide quick ROI

– Dual Paper/Electronic solutions are available

– Scalable and reliable technology is key to long-term success

– EIPP services are easier to implement, more cost effective and more secure that other alternatives in the marketplace

3

Step 4: VAT & Compliancy

Some Key Points

– B2B and B2C are not the same

– European Legislation (VAT Directive)

– Definition of ‘Compliance’

Deploy country specific compliance optionsWe offer compliance of the delivery channelWe provide expertise (Ernst & Young, PWC)

– European & Worldwide rules

4

Step 5: Roll-Out (Enrollment & Onboarding)

Enrolling Customers

– Very high conversion possible

– Opt in versus opt out

– Incentivise staff

– Vendor support essential

LiteratureMarketingFlash DemosCall Centre Support

5

Step 5: Roll-Out (Enrollment & Onboarding)

Enrolling Customers e.g DHL

Welcome CD

Datasheet

Flash Demo

5

Step 5: Roll-Out (Enrollment & Onboarding)5

Step 5: Roll-Out (Enrollment & Onboarding)

Onboarding Suppliers

– Pilot with a range of friendly suppliers

– Promote case studies

– Provide strong, clear messages

– Strategies and enabling technologies

– Incentivise staff to migrate difficult suppliers

– Vendor support essential

5

Summary - Success Factors

Have a clear strategy

SUCCESS!

Find an experienced vendor

Use case studies with your users

AR – be bold!Opt-out versus opt-in

Incentivise staff80% conversion Charge for paper

AP – remove barriers to adoption

Discounts

Summary - Benefits Beyond Implementation

New communications

channel

MeetCustomerdemand

Brandenhancement

Marketingchannel

One-view ofAll docs 24/7

A globalsolution

Base for additionalofferings

FastEfficient

Green

And finally……

iPod Shuffle Competition Winners

1. Rod Dalgleish - Knowledgepoint

2. Alison Barratt - AIG

3. Matt Tarrant - AWE Europe

4. Sarah Boundy – Hi-Tech Sports

5. Maureen MacCarthy – Warner Music

Thank You

Further Information

Richard Cogswell, Sales Director

Email: richard.cogswell@accountis.com

– www.accountis.com

– +44 (0)845 120 8050

– sales@accountis.com