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How Invoiced Automates Accounts Receivable By the Billions

Jared King, Co-Founder & CEO, InvoicedJared King, Co-Founder & CEO, Invoiced

Invoiced provides a cloud-based accounts receivable automation platform that enables businesses to put their billing and collections operations on autopilot. The Invoiced platform handles the complete invoice-to-cash cycle including everything from complex invoice generation to communication and reminders to payment acceptance and all the way to cash application and reconciliation. The Invoiced platform is designed from the ground up to be highly configurable, customizable and extensible for seamless integration with accounting platforms, ERPs and other systems. Invoiced serves thousands of businesses across sectors but has deep experience with software, energy/utilities, business services and healthcare. The company boasts thousands of customers in 92 countries and currently processes more than $2 billion in receivables each month.

Why is accounts receivable automation a worthwhile investment area for CFOs?

Cash is the lifeblood for healthy business operations, and accounts receivable is the means through which cash flows into the business for companies who invoice their customers. While generating revenue is important, as every CFO knows, all the revenue in the world doesn’t amount to much without receiving the associated monies. Automating accounts receivable is one of the best steps CFOs can take to make sure they have enough cash on hand at any given moment as well make sure they don’t spend too much time on manual billing, collections and payment acceptance tasks that can easily bog down accounting teams.

What does Invoiced do that the core accounting or ERP system doesn’t do for CFOs?

Almost every business uses some kind of accounting or ERP system to manage their financials. And almost every accounting or ERP software provides basic capabilities for sending out invoices and perhaps even collecting payments. But as businesses grow and become more complex, they quickly outgrow the built-in “starter” capabilities offered by most accounting and ERP software. Invoiced goes beyond the basics to accommodate the billing and collection requirements of very different types of business models with tools and automated workflows that reduce both the time and level of effort required to get paid quickly. These additional requirements often entail more precision and segmentation for payment reminders, advanced billing capabilities like subscription management, overage fees or proration, or sophisticated, AI-based cash application for unapplied payments.

What results do clients typically see?

At the highest level, we like to bring to our clients what we describe as a “Total A/R Lifestyle Change”. What we mean by this is that we’re turning A/R from a very intensive hands-on experience to one that is more hands off.
In contrast to managing a disorganized constellation of spreadsheets and post-it notes and spending hours of time chasing down overdue invoices, our software is designed to take that workload off the shoulders of accounting teams so that they only need to get involved when we notify them that something isn’t going according to plan. As far as metrics go we reduce days to pay by an average of 14 days and we slash staff time spent on collections activities by as much as 95%.

What problems does Invoiced solve?

Invoiced solves three critical problems for clients: (1) Businesses struggle to get paid in a timely manner. Invoiced accelerates payment by digitizing and streamlining all billing and collections activities as well as facilitating easy online payments. (2) Businesses spend too much time on collections. Invoiced enables clients to "set it and forget it" by automating nearly all communication and chasing activities that businesses typically spend countless hours on each month. (3) Businesses only offer outdated ways for their customers to pay. Invoiced provides a modern and flexible online customer payment portal that makes it easy for the client's customers to make payments and manage their entire billing relationship with the business.

Invoiced differs dramatically from alternatives because it is a true platform, as opposed to a narrowly focused product or tool. It is intentionally designed to be extensible and adaptable for the growth and change inevitably faced by client organizations. There are many low cost, low capability point solutions available to very small businesses, freelancers and independent business owners. There are also several high priced, high complexity solutions for the $1 billion plus enterprise segment of the market. Invoiced stands apart from other solutions as a true platform that can address both the complex needs and the budgetary realities of companies with more than $10MM but less than $500MM in annual revenue (i.e. mid-market companies).

How does Invoiced work with all of the other technology under the hood of the accounting or finance organization?

Because Invoiced was intentionally designed and developed as a true platform, it boasts an unmatched level of integration capability and extensibility. Underpinning the entire platform is a robust API that enables clients to integrate with nearly any system they want. Invoiced includes out-of-the-box integrations with popular accounting and ERP systems including QuickBooks, Oracle NetSuite, Sage Intacct and Xero. Invoiced also offers several other specialized push-button integrations with software like Salesforce, Slack, Zapier, Lob and many others.

In addition to pre-built integrations, clients can use Invoiced's powerful API to build integrations with nearly any other system. Clients can also engage an Invoiced implementation services partner to develop their own one-off integrations.

Where do you see A/R and financial automation heading?

We believe that we, our peers and our customers are just scratching the surface of the financial automation revolution. Invoiced is playing central role in this years-long transformation by bringing automation to one of the most important financial functions of business: getting paid. The need for cloud based A/R automation has been intensified during the pandemic as accounting teams work increasingly remotely and many are facing challenges with payment velocity.

The implications for our own organization are continued rapid growth and the challenge of playing an increasingly strategic role in how our clients operate. We also believe that the Invoiced platform will increasingly serve as a model for how APIs, UIs, security, payments and data connectivity come together to create ease of adoption, ease of use and the ability to scale and adapt.
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