Electronic invoicing, or e-invoicing, like the name implies, is the electronic exchange of invoice documents between a supplier and the customer. Electronic invoicing goes beyond merely sending a PDF receipt to a customer by means of email. A true e-invoicing arrangement is an integrated arrangement where an electronic invoice is transmitted and received seamless between the supplier’s records receivable system and the customer’s records payable system. E-invoicing documents are regularly exchanged in EDI or XML designs. (Source: E-Invoicing Basics)
Why change from a manual, paper-based system to an electronic invoicing system? Paper-based system is famously time-expending and prone to errors. All things considered, paper invoicing tends to have higher expenses and longer processing lifecycles.
Despite the widespread appropriation of Robotization for some, business processes, creditor liabilities and records receivable processes remain largely manual (Source: Dolphin Corp).
Benefits of E-Invoicing for Suppliers
Changing to e-invoicing solves these problems, resulting in faster processing, lower exchange costs, greater perceivability, and huge investment funds. From a business perspective, e-invoicing delivers numerous benefits all through the AR/AP process.
For starters, there’s no mail to sort, distribute, or open. Not just that, e-invoicing eliminates costs associated with paper bills, envelopes, and postage hoa don dien tu fpt. In addition, it takes considerably less time to process generate bill payment. With the new system, you can create and distribute an entire group of invoices with only a few ticks.
Next, there’s no information entry required. Since the payment arrives in the buyer’s records payable system naturally, the records payable clerk does not need to enter the information by hand. E-invoicing eliminates the potential for mistakes and ensures precision. Likewise, there’s no need to check paper bills, another manual process that takes time and can be prone to errors, for example, illegible sweeps.
Meanwhile, all invoices are in a flash and securely delivered. By eliminating mail from the equation, you are likewise eliminating several days from receipt to payment. Correspondingly, electronic payments speed the process and mean you do not have to hold up in line at the bank to deposit your money.
Electronic invoices are easy to store and reference, with no physical file cabinets required. As you catch up with customers, you can easily include a connection or attachment to the first payment receipt, purchase order, or related documentation.
Benefits of E-Invoicing for Buyers
E-invoices offer benefits for your customers also. For example, you can offer a variety of payment alternatives, for example, debit, credit, and ACH. Paperless system additionally opens the entryway to automated reminders complete with integrated pay presently catches that connect to the bill. Your customers’ records payable team will appreciate not having to physically enter information or sweep paper bill, as well.