16 November 2021: BlackLine launched its new accounts receivable (AR) tool, which it claims is the first unified platform for end-to-end cash flow optimisation in the industry. The software features intelligent optical character recognition (OCR) to eliminate manual work and reduce process errors. It also allows the predictability of customer payments when building cash flow forecasts.
Why it’s Important
More organisations are adopting e-invoicing to take advantage of automation features, reduced printing costs, shorter payment delays and faster delivery times. As noted in our previous advisory The ERP: A critical IT application for the business, more Australian organisations are joining the trend of transforming their finance processes by replacing their ERP finance systems with a scalable Cloud-based ERP system that offers seamless integration to other business applications and streamlines backend business processes.
Recently, IBRS conducted a study into the economics of ERP and Cloud solutions to find out the best ROI on their tech investments. A common answer among mid-size organisations and government agencies is the value of financial automation in relation to labour hours. On average, they reported productivity savings of between 0.5 and 3 full-time equivalent (FTE) roles when they switched to e-invoicing. Interestingly, the same benefit was cited by respondents in our 2019-2020 study on local governments in the country.
There are challenges to e-invoicing adoption, however. Apart from the perceived complexity and difficulty of most organisations in getting up to speed in their transition, employees worry about the threat of being made redundant in the near future.
IBRS discovered, however, that senior leadership teams transfer employees impacted by the reduction in labour hours to other roles where their skills are applicable. Organisations that go down this path gain more control in carefully managing their employee concerns. E-invoicing has become a foundational solution for better process management to establish digital relationships with their partners and internal staff.
Before upgrading the financial platform, review the context of your current organisational and ICT strategy. Consider how the platform supports full ‘end-to-end’ processes that are integrated with other business software systems so that appropriate touchpoints are captured and understood. By doing so, the platform can meet its expected impact on your financial metrics and process requirements.
Related IBRS Advisory
- A review of ERP finance systems
- The ERP: A critical IT application for the business
- Replace or reinvigorate today's ERP Solution now
- Turning data analysis from an art to a science