Environmentally Friendly Practices Reduce Paper, Improve Finance Operations
STAMFORD, Conn., April 14, 2016 – In keeping with Earth Day 2016’s theme of “Trees for the Earth,” Basware, the global leader in networked purchase-to-pay (P2P) solutions, e-invoicing and innovative financing services, today released guidelines to help companies significantly reduce paper through financial process automation. These guidelines also help companies improve their finance operations and reduce costs.
An estimated 500 billion invoices are sent globally each year with businesses and government receiving about 170 billion invoices annually. According to a Feb. 2016 report from Billentis: E-Invoicing/E-Billing, International Market Overview and Forecast, it is projected that only 28 billion of these B2B and B2G invoices will be sent electronically in 2016. In addition, because there are many supporting documents accompanying invoices, such as purchase orders and goods received, the amount of paper organizations receive is increased by multiples.
“Reducing paper is a win-win situation for companies. The billions of paper invoices sent annually not only destroys trees but also creates problems for organizations as well, by minimizing visibility, creating inefficiencies, and increasing costs,” said Bob Cohen, Basware VP, North America. “By reducing or eliminating paper invoices and implementing other green financial practices, companies can minimize their carbon footprint, as well as improve their visibility and control over cash flow, spend and working capital.”
Paper production is a cause of deforestation, since the reduction of trees increases carbon dioxide emissions. According to the Earth Day website, “… in a single year, an acre of mature trees absorbs the same amount of CO2 produced by driving the average car 26,000 miles.” [i]
To benefit the environment and organizations, Basware recommends eliminating paper in the following four ways:
- Implementing e-invoicing. Companies can reduce and even totally eliminate paper invoices by using cloud-based business commerce networks to send and receive invoices globally. In addition, companies can realize up to 80 percent cost savings, gain accuracy, and eliminate time-consuming and manual processes, such as printing, mailing, scanning, keying in invoice data, manually matching invoices to orders and archiving.
- Creating a green supply chain ecosystem. By helping their suppliers establish e-invoicing through supplier on-boarding, supplier portals and other services, many companies are receiving 100 percent of their invoices electronically, while also promoting eco-friendly practices throughout their trading ecosystem.
- Encourage electronic purchases. Companies can eliminate large paper catalogs for employee purchasing by providing e-catalogs over business commerce networks. This practice also helps companies enforce their purchasing plans and policies and support the vendors that provide the best value.
- Make payments electronically. By implementing electronic payment practices, companies can forgo the need for checks and cash in B2B financial transactions. It’s not only good for the environment, but it’s also a more efficient and effective way to conduct business. By using solutions that combine e-invoicing and e-payment networks, both buyers and suppliers can benefit from improved cash flow.
Basware is the global leader in providing networked purchase-to-pay solutions, e-invoicing and innovative financing services. Basware’s commerce and financing network connects businesses in more than 100 countries and territories around the globe. As the largest open business network in the world, Basware provides scale and reach for organizations of all sizes, enabling them to grow their business and unlock value across their operations by simplifying and streamlining financial processes. Small and large companies around the world achieve significant cost savings, more flexible payment terms, greater efficiencies and closer relationships with their suppliers. The company’s North American business, Basware, Inc., is headquartered in Stamford, Conn. Find out more at www.basware.com.
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Pardes Communications LLC