Farah Fagan posted an update 2 months, 2 weeks ago
Electronic invoicing, or e-invoicing, just like the name implies, may be the electronic exchange of invoice documents from the supplier as well as the customer. Electronic invoicing goes beyond merely sending a PDF receipt to a customer via email. A real e-invoicing option would be an integrated solution where an electronic digital invoice is transmitted and received seamless involving the supplier’s accounts receivable system and the customer’s accounts payable system. E-invoicing documents are normally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch from the manual, paper-based system for an electronic invoicing system? Paper-based method is notoriously time-consuming and susceptible to errors. Therefore, paper invoicing tends to have higher costs and longer processing lifecycles.
Regardless of the widespread adoption of automation for most business processes, accounts payable and a / r processes remain largely manual (Source: Dolphin Corp).
Benefits of E-Invoicing for Suppliers
Switching to e-invoicing solves these complications, producing faster processing, lower transaction costs, greater visibility, and significant savings. Coming from a business perspective, e-invoicing delivers many benefits throughout the AR / AP process.
First of all, there is no mail to sort, distribute, or open. Not only that, e-invoicing eliminates expenses related to paper bills, envelopes, and postage. Plus, it requires significantly less time for it to process generate bill payment. With all the new system, you may create and distribute an entire batch of invoices with a few clicks. (Source: Pay Simple)
Next, there is not any data entry required. Since payment comes to the buyer’s accounts payable system automatically, the accounts payable clerk doesn’t have to type in the data personally. E-invoicing eliminates the opportunity of mistakes and ensures accuracy. Likewise, you needn’t scan paper bills, another manual method that needs time and could be at risk of errors for example illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By eliminating mail from your equation, you are also eliminating several days from receipt to payment. Similarly, electronic payments speed the method and mean it’s not necessary to wait in line in the bank to deposit your money.
Electronic invoices are really simple to store and reference, without physical file cabinets required. While you phone customers, it is simple to add a link or attachment on the original payment receipt, purchase order, or related documentation.
Important things about E-Invoicing for Buyers
E-invoices offer benefits for the customers too. As an example, it is possible to give you a various payment options including debit, credit, and ACH. Paperless system also opens the door to automated reminders filled with integrated “pay now” buttons that connect to the check. Your customers’ accounts payable team will appreciate not having to manually enter data or scan paper bill, too.
Switching to e-invoicing saves time and cash, a win-win for both sides.
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