#Japan #Isesaki #Invoice Processing #BtoB Platform #Isesaki City

Digital Transformation of Invoice Processing in Isesaki City

The power of technology has revolutionized the administrative processes in Isesaki City, located in Gunma Prefecture, Japan. By implementing the "BtoB Platform Invoice," the city has digitized its annual processing of approximately 70,000 invoices, significantly enhancing operational efficiency and reducing the workload of its staff.

Background of Implementation

This initiative is part of Isesaki City's new comprehensive policy, which emphasizes co-creation and collaboration in administrative and fiscal policies. As a key element of this policy, digital transformation initiatives, including the electronic decision-making process and enhanced information systems, are being prioritized. The introduction of electronic invoices is anticipated to work synergistically with these other digital initiatives.

Prior to transition, most of the invoices (about 90%) were still received in paper format, with around 30% of them written by hand. Such issues made it difficult for staff to read these invoices, resulting in many instances where corrections were required, further complicating the processing tasks. Previously, reconciling invoices involved lengthy processes like verifying contents, handling discrepancies, confirming account information, and filing original documents—all cumbersome tasks consuming a significant amount of time. It was common for even experienced employees to spend between 10 and 20 minutes to process a single paper invoice. Moreover, if mistakes were found, retrieving the documents from the central office to request corrections was necessary, which could stall the entire process by an additional three to four days.

Key Factors in Choosing the BtoB Platform

In the 2023 fiscal year, a new working group focusing on the introduction of an electronic decision-making financial accounting system was established, which spotlighted the seamless integration with electronic invoice services as a driving factor for adopting the "BtoB Platform Invoice." This capability to integrate with existing financial systems was pivotal in making the decision to move forward with this digital transformation.

Positive Outcomes of the Implementation

1. Drastically Reduced Processing Time: The processing time for invoices has decreased dramatically from 10-20 minutes to about 5 minutes per invoice. Staff have reported that selecting electronic invoices allows for automatic transfer of necessary details into the financial system, which has made their jobs much easier. This reduction not only benefits city employees but also alleviates the burden on vendors, who no longer need to come to the office to resolve issues with rejected invoices.

2. Engagement from Local Businesses: Among approximately 1,000 businesses previously associated with the city, about 30% (339 companies) have logged onto the BtoB platform to access and process invoices. This includes small local shops, showing broad acceptance and engagement from the community, which aligns with Isesaki City’s goal of increasing electronic invoice usage to over 50% in the future.

Future Outlook

Having successfully initiated this digital transformation, Isesaki City is now set to maintain momentum toward comprehensive optimization from front-office processes to back-office functions. Collaboration among various departments, combined with guidance from the finance and DX teams, is essential for fostering innovation through digital tools. There's a clear pathway ahead to promote increased usage of electronic invoices, exploring flexible integration methods for businesses already using compatible systems. The city aims to expand its digital footprint while working alongside Infomart to support diverse business needs.

Conclusion

As seen in Isesaki's successful transition to digital invoice processing, leveraging modern cloud-based systems can lead to significant improvements in efficiency, ultimately benefiting both the city administration and its business partners. This case illustrates the potential of technology to transform public sector operations, paving the way for broader municipal innovation across Japan.

For further information on the BtoB Platform’s capabilities, visit Infomart's official site.