We listed some more ancillary processes of billing in the last post.
https://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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Not sure why the market is finding it difficult to move away from manual billing. It can introduce efficiency on both bank and customer sides.