Paperless Invoicing: 5 Steps to Make the Switch

Paperless invoice processing streamlines workflows and increases efficiency

Paper forms are becoming a thing of the past. Many businesses are making the switch to paperless invoicing to streamline processes and meet customer expectations. It’s a challenging transition, but the benefits outweigh the initial investment. Here’s how to transition your business to paperless invoice processing.

Adopting a paperless approach is an excellent way to futureproof your business. Read our complete guide to find out what you need to know before you get started.

What is paperless invoicing?

Physical invoices can need a lot of materials. Paper forms, envelopes, and mailing materials take up space and slow down workflows. On the other hand, paperless invoicing takes that process into the digital realm. With a paperless invoice system, your customers can pay their invoices online. This has several advantages:

• It’s faster: Your customer can save time by paying their bill in seconds. You can also save time by cutting out the tedious mailing process.
• It’s more accessible: Customers can access their invoices online, rather than having to track down their paper bills. Your employees can also load up past and current invoices in a flash.
• It saves money: Paperless invoices can reduce costs by about 70% compared to traditional invoices.
• It’s eco-friendly: Moving to a system of digital invoices can help to decrease deforestation and reduce your carbon footprint.
• It delights customers: Many customers actually prefer paperless transactions for a number of reasons.

In the long run, going paperless is a worthwhile investment. The time and money your company can save from the transition helps increase efficiency and employee satisfaction. A paperless accounts payable process also signals that your business is ready for the future, not stuck in the past.

Of course, this change won’t happen overnight. It takes careful planning to switch to paperless invoicing. By following the steps outlined below, you can make the transition as smooth as possible and ensure best practices are in place.

Step 1: Make a timeline

Your first step in going paperless is establishing a timeline. The subsequent steps in this process require a strategic approach; you’ll need to consider the time it takes to procure equipment, train your team, and communicate with customers. That timeline will vary depending on the size of your business, so be realistic. Six months is typically ambitious but achievable, though a year gives you more breathing room. Consider your current resources when choosing an end date and work backward from there.

Once you know when you want to have paperless invoices in place, set additional deadlines for smaller steps. When will you let your customers know about the change? How many reminders will you send? How long will it take to order and set up equipment? Create a checklist and assign dates to each item on that list to ensure your transition to paperless invoicing stays on schedule.

Step 2: Create a workflow

Once you have your timeline, it’s time to get employee buy-in. Consult with company leaders to establish how the paperless invoicing process should work. How will customers pay their bills? Online? Through an app? Once that’s done, how will your accounts payable team process the invoice? What employee guidelines need to be set in place? Once you’re able to answer those questions, document the process and use it to train your team. Be sure to include audit trails and regular review periods in the process to ensure things continue running smoothly.

While you’re looking to the future, don’t forget about the past. If you’re switching to paperless invoicing for the first time, you likely have mountains of old paperwork stashed in file cabinets. Plan to incorporate the digitization of these files into your transition to paperless invoices. Set aside enough time to do so and keep the volume of these physical files in mind when selecting your tools for this project.

Step 3: Choose your equipment

You can’t make the switch to paperless invoices without the right tools. Start with professional-grade scanners that automate the digitization process as much as possible. These scanners should be fast, accurate, and reliable; a paper jam or unclear scan can throw a wrench in the process. Additionally, scanners that require constant manual input slow things down, so look for hardware that can handle uninterrupted workflows.

You’ll also need software designed for paperless invoicing, preferably with built-in security features. A data breach could cause catastrophic damage to your company’s reputation, so make encryption a priority. You’ll also want to follow any other industry-specific guidelines, such as HIPAA compliance. Finally, make sure this software is accessible to your business partners that might be using different invoicing systems.

Step 4: Create hybrid policies for paper-using partners

It’s important to consider how the move to paperless invoicing will affect other businesses you work with. If you regularly work with companies that haven’t digitized their processes, you’ll need to create policies that accommodate both sides of the transaction. Using collaborative software that lets each side choose their preferred format can ease this process. This way, your partners can print out invoices for their records, scan any relevant documents, and send files back to you digitally.

Step 5: Institute a transition period and evaluate your progress

When you’re ready to go live with your new paperless workflow, don’t expect it to happen all at once. Make the switch in waves, giving customers and employees the opportunity to keep up with the changing times. For example, you may want to give customers the opportunity to switch to paperless invoicing in the event it becomes mandatory in the future. This way, early adopters can benefit from the convenience right away and your team can ease into the process. Make them aware of the deadline to go fully digital, send out several reminders via email and traditional mail, and give them every opportunity to ask questions. Address internal and external concerns along the way so that by the time you get to the final deadline on your timeline, there’s no ambiguity about the process or how it works.

During this transition period, be sure to talk to team leaders to see how your employees are managing the change. Have there been any unexpected hiccups? Have service calls increased? Are there areas for improvement? Customer surveys can help you gauge the external response and let you know if there are any issues your own employees haven’t seen. Performance of these check-ins regularly can ensure that employees and customers are generally satisfied before hitting your digital deadline. Eventually, you won’t need to take such a hands-on approach and can enjoy the time savings and cost benefits associated with paperless invoicing.

Our recommendation: Ricoh fi Series scanners

Those in the market for paperless invoicing equipment have no shortage of scanner options. We take great pride in having spent the last 50+ years researching, designing, and developing some of the most advanced and powerful electronics in the world, including our professional grade fi Series scanners.

Built to purpose for the most demanding document handling jobs, Ricoh fi Series scanners are capable of processing tens of thousands of pages per day at the highest levels of accuracy. Their intuitive integration capabilities with all existing work suites minimize time-to-value for businesses looking to invest in tools that will pay dividends for years to come.

Be sure to choose a scanner that suits your volume of work. For lighter loads, we recommend the fi-8170 or fi-8190, which offer speedy double-sided scanning and Intelligent Paper Protection. For heavy-duty jobs, the fi-7600 has a sizable 300-page hopper, while the fi-7900 ups that to 500 pages and scans 140 pages per minute. And if you need a scanner that can operate independently without a PC, the fi-8040 is a natural choice thanks to DirectScan technology. Click here to learn more or shop the rest of our production scanner line.

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