In January of 2013 I was on site at a client troubleshooting a problem regarding the printing of invoices from the company’s business software. I discovered at this time that electronic invoicing, an existing feature contained in their software suite, had not been configured for them and therefore they printed and mailed each invoice on a daily basis. I was taken aback – something so simple and easy to configure with huge residual benefits was not set up by their vendor. We quickly configured the settings and the employees took the extra few seconds to collect email addresses from their clients, which they had not done before. This client has realized significant savings since we helped them implement this simple but effective change.
As an example let’s assume the following:
- On average, your business processes 50 orders per day
- The cost of a stamp, envelope, paper and toner is only 50 cents per invoice
- Orders are only processed 250 days per year of 260 available work days due to weather related closings, holidays or other unexpected events
All of this adds up to $6250 saved per year in material costs. According to Indeed, the average book keeper here in Columbia, SC makes $35,000 per year or roughly $17 per hour. If he or she is able to print, fold, and stuff the envelopes with all the invoices in one hour, it’s at a cost of $4,250 per year. Budgeting an additional hour per day for unforeseen issues increases that to $8,500 per year.
That’s as much as $14,750 per year spent on manual processing of invoices. If all things stay the same with the business that adds up to $59,000 over a 4 year period. Now, if the business grew at a rate of 5% per year it raises the cost to $63,572. What is not factored is the benefit of the other tasks the book keeper is able to accomplish with the re-gained time.
Don’t fall into the “we’ve always done it this way” trap. Let us help you look for ways to improve your processes. Contact us(803.955.7737 or @spestech) for a free consultation, we’re confident we can help find ways to make your business more efficient.