If you haven't yet switched to paperless billing, you probably are just waiting for the right time. If you do invoices at particular times of the month, you probably think about it every time you do your invoices -- and then forget about it till the next time comes around. If you are like a lot of small businesses, you may not get around to the invoices every month, so your need to fix your billing system is like a nagging pain that you carry around with you, waiting till you have time to do something about it.

So what's the right time?

There are two times when you really should consider switching to electronic bill presentment and payment (EBPP, also known as EIPP, e-billing, and electronic invoicing).

First, you should do it when everyone else in your industry is using e-billing. Your customers come to expect it and to value the convenience, and having the only company that still uses paper can make you look less up-to-date, less environmentally responsible, and less responsive to customers.

Second, you should make the switch when no one else in your industry is doing it. Being the first to offer electronic billing makes you look more up-to-date,  more environmentally responsible, and more concerned with customer convenience than your competitors.

That's a good thing.

I think we all know by now that paper billing is on its way out. Now that plenty of people use electronic invoicing, consumers are accustomed to the idea, and the bugs are out of the system, there's no reason not to take the plunge.

It's the stuff of science fiction, but it's also a real concern for many people in a troubled economy: computers taking over human jobs.

When we at SmartPay talk about the cost and time savings of electronic invoicing, of course we are including the time and costs of human workers. SmartPay automatic billing solution allows the people in charge of invoicing to set up automatic invoices, and to create single invoices in moments with a few clicks of the keyboard, rather than typing things out. There's no mailroom work involved, no physical filing, no storage or copying or other paper-related jobs. 

Are we losing something?

We don't think so. Business Solutions recently wrote about a company that needed either to automate invoices or to start "packing its office with data-entry operators." Is that an image of a positive workplace?

SmartPay reduces the number of hours people have to spend on work that can be done automatically.  That frees up the human beings to do things that cannot be done automatically -- creative work, essential decision-making, mission-critical tasks. Taking care of customers, interacting with others, developing strategies for the best possible experience for clients.

More satisfying work, we'd say. 

For a small business, it's even more critical -- packing the office with data-entry operators isn't an option, so the owner or other key workers end up staying late to get the billing done, or putting aside other tasks. Doing your invoicing on the computer can make a real improvement  in your life, if you're in this situation.

In this case, technology is your friend.

We're not really saying you need to have a green stapler. We're talking about environmentally sustainable business. It's a way to save money, and it's also a selling point for your business. A growing number of consumers will make extra efforts to trade with green companies. Is yours one of those green companies? See how many of these statements are true for your office:

• We keep our machinery in top condition and replace obsolete machinery, to save energy.
• We use our machinery with conservation in mind, turning them off when theyr'e not needed.
• We use non-electric options (such as hand-operated rather than electric staplers) when they'll work just as well.
• We avoid waste by making efforts to gauge needs accurately before ordering materials.
• We buy products without unnecessary packaging.
  
• We make an effort to re-use materials whenever possible.
• When items can't be re-used in our office, we make the effort to recycle them.
• We buy recycled office supplies whenever possible.
• We avoid disposable goods in the break room or office kitchen.
• We use electronic invoicing and online billing solutions to reduce paper use and waste.
• We use online communications and record-keeping such as CRM solutions to reduce paper use and waste.
  
• We have online meetings when possible instead of transporting people to meeting places.
  
• Our office vehicles are energy-efficient.
• We group errands and travel together when possible in order to cut down on the miles we drive.
• We encourage a conservation-oriented attitude within our office.

If you can say "yes, that's true" to a number of these statements, let your customers know. While market estimates suggest that about a third of consumers are willing to make extra efforts (including paying somewhat higher prices) to go green, nearly 97% of consumers report that they will choose a green company or product over a less environmentally responsible choice if there is no extra cost to them. So if you can honestly describe your office as "green," then you should let your customers know.

Show your SmartPay sign, list your green efforts in your company newsletter, or include details in your advertising and signage. Make a statement of environmental responsibility at your website. When you're making the effort, you ought to be taking the credit. 

There's been an explosion in the popularity of electronic invoicing. Where just a couple of years ago 95% of bills were paid by mail, now e-invoicing is one of the most popular business uses of the internet.

There have been predictions about the effects of a switch to paperless invoicing -- great savings in the use of natural resources, impressive reductions in waste -- and there have been plenty of reports on the immediate cost savings for businesses.These predictions and short-term benefits have been enough to drive more and more companies and consumers to choose electronic billing.

But now there's enough information to allow some speculations about the long-term effects of EIPP. Enough time has passed since significant numbers of offices began using electronic billing systems that some measurable results are in.

The news is good.

Recent studies have found that customer profitability increases with electronic billing. Comparing customers paying electronic invoices with those who paid by mail, the researchers determined that those who used EIPP were more profitable than those who did not. 

Our immediate thought is that this is no surprise -- paper billing can cost three times as much as using SmartPay, so naturally the profit will increase.

However, we're talking about differences in profitability of 30-40% seen over dozens of companies. Only 1% of that increase in customer value was attributed to the savings. The rest of the improvement was about relationships.

What kind of relationship do you have with people who send you bills? You open the bill, write the check, and stick it in the mailbox. The most you could hope for in terms of an emotional response would be a moment of irritation as you search for a stamp.

Customers who pay their bills online, though,  go and visit a website -- in the case of SmartPay, it's a customized secure online portal. The online visit involved in paying a bill electronically is apparently perceived as an interaction with the company, while mailing a check is not.

The researchers in these studies concluded that charging a fee for online payments -- a common practice in the past, and one which keeps people from choosing e-billing -- was not a wise approach. The increase in sales to customers brought about by the deepened relationship far outweighed the value of the fee. Since ebilling is actually a less expensive option than mailing bills, fees are unnecessary. But the knowledge that EIPP is associated with increased customer profitability ought to help remove those lingering hesitations that keep some businesses from making the move to electronic invoicing.