Our customers and pretty much every company in business today are still looking for ways to save money. Some companies have reduced discretionary spending, some imposed wage cuts and unfortunately for others, have reduced staff levels. With everyone looking to save money, it got me thinking about one of the easiest ways to save money and that is by reducing your postage.
As a common standard feature of most modern day accounting software packages, you can electronically send out invoices and statements to your customers instead of posting them.
How much can your accounting software save you on postage?
We recently asked a few customers how many invoices and statements they send out per week/month. One customer informed us that they send out 100 invoices per week and approximately 500 statements per month. When we worked out the actual cost of sending both statements and invoices by post, it surprised us:
Estimated cost of sending Invoices:
Cost per invoice:
No. of invoices:
Total Cost per week:
Cost of sending Statements:
Cost per Statement:
No. of Statements:
Total Cost per month:
So over the course of one month, this company spent almost €1,000 on sending out invoices and statements by post. It doesn’t take a genius to work out that this equates to nearly €12,000 per year.
What if some or all of this money could easily be saved? What you could do with the money saved?
As mentioned above, most modern day accounting software systems enable you to send out invoices and statement electronically via email or through fax. Think about which customers could receive their invoices and statements via email or fax? I am sure not all of them could but I am positive a good majority would be able to. Imagine sending your invoices and statements directly to the correct contact in the accounts department – would that speed up payment as well? It may very well do so.
In any case, a small saving on postage may not make a huge difference to your company’ performance but as one famous supermarket claims “Every little helps”.