Do You Know the Real Cost of Invoicing Your Customers?
The process of invoicing a customer includes maintaining customer and product master files, generating customer billing data, transmitting billing data to customers, posting receivable entries, and resolving billing inquiries. Process cost includes the fully loaded cost of personnel, outsourcing, systems, and overhead, as well as other allocations to the process. The best-performing organizations spend $2 or less to invoice a customer. However, invoicing isn’t just the accounting team’s job. An effective process requires coordination between sales and accounting, so making sure that these teams’ systems talk to each other is crucial.