Farah Fagan posted an update 2 months, 2 weeks ago
Electronic invoicing, or e-invoicing, just like the name implies, is the electronic exchange of invoice documents from a supplier along with the customer. Electronic invoicing goes past merely sending a PDF receipt to a customer via email. A real e-invoicing solution is a built-in solution where an electric invoice is transmitted and received seamless involving the supplier’s a / r system and the customer’s accounts payable system. E-invoicing documents are generally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch coming from a manual, paper-based system for an electronic invoicing system? Paper-based product is notoriously time-consuming and at risk of errors. Consequently, paper invoicing will have higher costs and longer processing lifecycles.
Inspite of the widespread adoption of automation for many business processes, accounts payable and accounts receivable processes remain largely manual (Source: Dolphin Corp).
Advantages of~conveniences of E-Invoicing for Suppliers
Switching to e-invoicing solves these issues, causing faster processing, lower transaction costs, greater visibility, and significant savings. Coming from a business perspective, e-invoicing delivers many benefits during the entire AR / AP process.
First of all, there’s no mail to sort, distribute, or open. Not just that, e-invoicing eliminates costs associated with paper bills, envelopes, and postage. Plus, it requires a smaller amount time to process generate bill payment. Together with the new system, you can create and distribute a complete batch of invoices with only a number of 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 need not enter the data by hand. E-invoicing eliminates the opportunity for mistakes and ensures accuracy. Likewise, you don’t need to scan paper bills, another manual process that needs time to work and is susceptible to errors for example illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By reduction of mail from the equation, you happen to be also eliminating several days from receipt to payment. Similarly, electronic payments speed the process and mean you won’t need to wait with the bank to deposit your money.
Electronic invoices are really easy to store and reference, without physical file cabinets required. When you phone customers, you can easily add a link or attachment for the original payment receipt, purchase order, or related documentation.
Benefits of E-Invoicing for Buyers
E-invoices offer benefits to your customers too. For example, you’ll be able to give you a number of payment options such as debit, credit, and ACH. Paperless system also paves the way to automated reminders complete with integrated “pay now” buttons that url to into your market. 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 expense, a win-win both for sides.
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