Transcepta was founded in June 2005 with the mission of creating an easy-to-implement, on-demand, electronic invoice presentment and payment (EIPP) solution accessible to businesses of all sizes.
Shan Haq, Transcepta’s Director of Product Management shares with us his insight into this growing market. My questions to him are in bold.
Electronic invoicing has been around for some time, it’s now offered through PayPal and of course Quickbooks and other financial software come with it build in. You say more small businesses not doing this. Why aren’t they?
Haq – Many small businesses are encouraged to send invoices electronically by their larger customers. However, email is not sufficient. Larger customers want their invoices sent in a specific data format (typically XML or EDI). Until Transcepta, there has not been a cost-effective, low-friction method for small businesses to send electronic invoices.
In scenarios where small businesses wish to cut costs by sending invoices to their customers via email, a solution such as QuickBooks can be a good option. However, as a vendor’s invoice volume grows to 500 invoices per month, it’s likely that a more robust accounting system is needed. Transcepta can leverage any accounting system and dynamically move from postal to electronic invoicing without requiring system or process changes.
How many are using electronic invoicing compared to manual invoicing or not at all?
Oly about one out of six invoices in the United States and one out of seven internationally are currently electronic, according to recent research from the Aberdeen Group.
How does one pick a solution to use? What differentiates solutions?
Vendors and Buyers should look for solutions that offer value to both ends of the equation. Historically, EDI and other e-Invoicing network solutions have failed because the value proposition to the Vendor has been weak. Look for solutions that enable Vendors to onboard in less than a day with remote web installation. Solutions should leverage and not require changes to existing systems, processes, or invoice formats. Value added services for Vendors such as postal mail delivery accommodation and payment processing are also important to round out the value proposition.
Are there differences in the invoicing needs of a solo-entrepreneur vs. a company with 10 or 75 employees?
Invoicing needs vary. Companies that have customers who desire electronic invoices and send a lot of invoices should consider Transcepta.