We listed some more ancillary processes of billing in the last post.

http://faoblog.com/processes-ar-billing-other-sub-processes-4/

Now if you examine the list, the first two items, bill presentment and receipt processing are beautiful candidates for automation. A clear example, your electricity and your phone bills – automated generation and electronic presentment characterize them, don’t they?

For utility bills / high volume standardized operations, automation is a key requirement and quite often, a lot of our clients do not really look at this aspect. They normally resort to manual billing procedures only. I worked for a client who was a whole seller of beauty products and perfumes, and always resorted to manual billings, creating his invoices through a Word document.

The manual billing involves a lot of paper work, manual recording and tracking. Separate books  need to be maintained for various types of clients. It is time consuming.

Key challenges of a manual billing process can be listed as below:

  • High Operating Cost -Manual billing involves numerous steps and physical movement of paper that consume time and resources.
  • Increased error risk – There is a greater chance of human errors, like misplaced or lost documents, non-conformance to laws, incorrect tax computations, clerical errors etc.
  • Delayed Payments – The time required for manual document processing and delivery delays can result in cash collection

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