Klaus Andersen, CEO
In the early years of technology implementation at enterprises, ERP systems were the rage, and organizations that acquired such computational operations management systems were beginning to upscale competition and gain efficiency in workflows. Over time, the software and hardware have evolved and made space for technology that is powered by AI, machine learning, and other such applied science mechanics. Presently, firms need to have a more engaging and agile digital orientation to have streamlined and seamless business functioning and an understanding that the digital approach is the way forward.
One area that large as well as small companies are looking at securing a proper line of operations for is in accounts payables (AP), and while most organizations understand its benefits, the journey toward solution integration has not been easy. An emerging solution to this problem is electronic invoicing (e-Invoicing), and the technique seems to be working wonders for those firms that are investing in comprehensive technology. Although the adoption has taken some time, e-Invoicing has become an integral part of many global organizations that have a plethora of customers spread across the world.
A factor that plays a considerable role in e-Invoicing is regulatory compliance, and this scenario has slightly dented firms from procuring the technology at facilities. Management at companies are still skeptical of the security the digital technology can offer, and often find the cost of its implementation too high.
Led by Klaus Andersen, CEO, Basware offers its e-Invoicing solution to a variety of industries both in the private and public sector. Before the advent of technology, the entire accounts payable process was manual, rigorous, reliant on paper, and susceptible to human-error leading to additional funding for invoice processing development at companies.
The inability to receive e-invoices makes it difficult for firms to onboard suppliers, and eventually, this situation leads to low automation technology adoption due to high-volumes of paper invoices. The lack of a proper solution to entertain accounts statements electronically from the very beginning of invoice creation and delivery makes the entire process cumbersome resulting in the inaccuracy of data, and distributors in constant doubt of payment statuses. Another issue accounts departments are highly like to face is missing early payment discounts due to the absence of efficient accounts payable management solutions.
Basware, a leading e-Invoicing solution provider is laying the ground by creating one of the largest active networks between suppliers and consumers to deliver cost-effective, easy-to-use e-Invoicing by bridging the gap between accounts payable and receivable systems. The company’s solution for e-invoicing lets suppliers continue to utilize the same billing strategy they have in place without any monetary implications to join the Basware Network. Organizations can receive invoices in the same manner as before—paper, PDF, EDI—and Basware’s solution automatically converts the material to an electronic format making it easy for accounts teams to manage, and make payments on time, every time.
Feature-Rich AP Automation
Organizations deploying Basware’s AP automation solution are treated to a commendable list of features that makes the entire process enjoyable for both suppliers and accounting teams. Access to the Basware Network and more than 200 e-invoicing partners allows suppliers to send invoices in their most preferred formats.
The operating architecture that Basware integrates empowers users with better management and procurement of spend visibility charts to predict cash flow and make payments appropriately. While manual AP can cause erroneous invoice matching, Basware allows for seamless process automation to verify data using any combination of the invoice, purchase orders (PO), goods receipts, quality checks and more, at the line and header level.
Organizations deploying Basware’s AP automation solution are treated to a commendable list of features that makes the entire process enjoyable for both suppliers and accounting teams
To initiate the AP operation, a standard search of purchase orders mentioned on an invoice is performed, once the exploration is conclusive, the solution calculates the invoice total to ensure that the sum available for payment is equal or within allocated levels. In addition, Basware’s solution has a built-in smart algorithm to recognize the best combination of invoice data to execute matching and approve appropriate payment based on structured information.
One major area for discussion at enterprises is compliance with regulations and the tax and invoices rules that companies must adhere to effectively. Basware empowers clients to maintain acceptance with global law-making boards robotically. Users can derive applicable tax rates from tax tables with direct access through their ERP systems. The company also partners with tax solution providers such as Vertex, Taxware, Avalara, and Sabrix, to name a few, enabling clients utilizing those solutions to implement Basware’s technology and gain clear insights on tax rates. Companies can identify when there is an anomaly in a tax invoice and assign general ledger coding for the differential to accrue funds and pay the correct taxing authority.
Basware, over the years, has been successfully upscaling clients invoicing processes to be paper-less and prone to human error. One such customer, an Information and Communication Technology (ICT) supplier, was looking for a method to deploy e-invoicing with the idea to eventually create a paperless invoice structure at their business facilities altogether.
A leading ICT provider based in the Netherlands had high invoice generations with numbers crossing over 100 million per year, and was second only to the Tax Administration in terms of annual, monthly paper consumption. The sheer volumes at which invoices were being sent and received made the decision to implement e-invoicing easier for the management at the telecommunications company.
Demand from a single client to receive invoices in EDI format led to the initial implementation of a digitalized billing structure at the Telco. The move was vital as it meant the loss of a valued customer in case of non-agreement to disperse the invoice in the method of choice. During the time, the economy was flourishing, and every company wanted a piece of the financial freedom offered by clients. The ICT provider collaborated with an external party to provide this service. A few years, down the line, however, recession in the Dutch economy led to the process being outsourced to an organization in Germany.
As the financial status slowly began to gain momentum after the collapse, clients once again began to flourish, and the telecommunication company saw an increasing demand to deliver e-invoices. While the e-Invoicing service provider that the firm was working with at that point of time was able to handle these requests, the Telco wanted to upscale it even further.
Owing to its status as a primary ICT provider, it was important that the enterprise lead the way and let the innovation spread across all areas of the organization. Not wanting to compromise on its credibility, and an impending need to switch to a new e-invoicing provider led the management at the telecommunications firm to the doors of Basware.
Partnering with Basware, the client saw an increase of 60 percentage in their cost savings through the implementation of Basware’s e-invoicing solution. After the successful completion of the first project, both companies would enter into discussions to make further improvements.
Nearly a decade later, the ICT provider still partners with Basware to send out its invoices electronically irrespective of the format of reception—paper or digital. While the delivery of e-invoices was reactive until the recent past, the telecommunications operator presently is rolling out e-invoicing to its large enterprise and corporate customers proactively. Partnering with Basware, the client wishes to deliver e-invoices to this group of 500-3000 companies who jointly represent 10000-100000 invoices annually and truly set the standard for paperless and touchless billing strategies.