The enforced lockdown and shelter-in-place orders during the COVID-19 pandemic have brought about both obstacles and chances for many sectors. The convenience of home food delivery is countered by the challenge of keeping fit as gyms and parks remain closed.
However, the most profound impact is felt in organizations that depend on the physical patronage of customers. Consumer goods companies have pivoted towards online sales, while many service-centric businesses like restaurants keep afloat by offering takeaway services.
Nevertheless, the struggle is real for most businesses. Amidst this turmoil, the effects on invoice submission processes are particularly notable. As companies strive to stay operational, the timely delivery of invoices becomes crucial in maintaining their cash flow during these unparalleled times.
The Pandemic’s Direct Impact on Various Invoicing Methods
Undeniably, the COVID-19 pandemic has dealt a severe blow to numerous businesses worldwide, resulting in a noticeable slump in invoice submissions. Traditional invoicing methods, such as dispatching paper invoices via mail or courier, have been greatly affected. The United States Postal Service (USPS), already under stress prior to the pandemic, now grapples with extraordinary challenges due to its dwindling workforce and a spike in package delivery. The need to maintain social distancing and ensure employee safety seems to conflict with the growing demand for home delivery.
Other nations, including the UK, Germany, and Australia, endeavor to uphold regular postal operations. Conversely, France, with merely 10% of postal branches in operation, delivers mail only thrice a week. Business Process Outsourcing (BPO) companies like Genpact, ADP, and EXL Service are caught in a predicament, having to strike a balance between providing essential services and safeguarding their employees. Moreover, equipping some BPO employees for remote work necessitates a significant lead time. Transitioning to a call center, for example, is a distinctly different task from managing an invoice scanning service, where handling of paper is ubiquitous.
Despite the enormous effort by many postal service organizations worldwide to continue regular operations while protecting their workforce, the submission of invoices via paper remains susceptible to disruption.
Does Digital Invoicing Hold the Solution?
Could digital invoicing be the solution to these challenges? Companies that have already adopted digital invoicing seem to have faced less disruption. While some larger digital invoicing implementations have seen delays in certain countries, the majority of e-invoicing processes remain largely unaffected and are even growing in some regions.
Taulia, a company based in San Francisco that specializes in electronic invoicing, supply chain financing, and dynamic discounting, launched Rapid Start Invoicing on April 16th. This service helps businesses counter disruptions by allowing their suppliers to sign up and start submitting invoices within a week.
Meanwhile, Billtrust, in response to the disruption in international mail services, has empowered its adoption team to offer free evaluations and initial campaigns to help customers transition to digital invoicing. Yet, it is worth noting that some digital invoicing initiatives have been put on hold entirely. For instance, Vietnam’s mandatory digital invoicing initiative, initially set to launch on November 1, 2020, has been postponed to July 1, 2022.
Post-Pandemic Invoicing: A New Landscape?
The question of what invoicing will look like in the aftermath of the COVID-19 pandemic is one that deserves critical thinking. Although I am not of the opinion that paper invoicing will become entirely obsolete due to the current crisis, it cannot be denied that this global lockdown offers a prime opportunity for e-invoicing solution providers to advance.
Delays in mail services coupled with potential interruptions in BPO could result in an increase in Days Sales Outstanding (DSO) by several days, possibly even weeks. However, genuinely touchless e-invoicing ensures that business procedures continue without hiccups. Under such conditions, suppliers can submit invoices without delay, and potentially, receive payments promptly as well.
Once the global economy regains its footing, it is likely that many supplier organizations will reconsider the available e-invoicing solutions. While the timing and nature of the next global financial crisis remain unforeseeable, companies can fortify their invoice-to-cash process with e-invoicing, ensuring uninterrupted operations.
Conclusion
In conclusion, the COVID-19 pandemic has highlighted the limitations and vulnerabilities of traditional invoicing methods. Businesses need to adapt and evolve to stay afloat in these challenging times. Digital invoicing, particularly in the form of e-invoicing, has proven to be a resilient and efficient alternative.
With the emergence of readily available tools such as invoice templates Word download, transitioning to e-invoicing has become more accessible than ever before. The pandemic may have disrupted the traditional invoice submission processes, but it also catalyzed an overhaul, pushing companies toward a more digitized, efficient, and resilient invoicing system. The future of invoicing, it appears, is inevitably digital.