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