Blevins Gaines posted an update 6 months ago
Electronic invoicing, or e-invoicing, just like the name implies, will be the electronic exchange of invoice documents from your supplier as well as the customer. Electronic invoicing goes beyond merely sending a PDF receipt into a customer via email. A real e-invoicing solution is an internal solution where an electronic invoice is transmitted and received seamless relating to the supplier’s accounts receivable system and the customer’s accounts payable system. E-invoicing documents are usually exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch from the manual, paper-based system to a electronic invoicing system? Paper-based system is notoriously time-consuming and vulnerable to errors. As such, paper invoicing has a tendency to have higher costs and longer processing lifecycles.
Despite the widespread adoption of automation for most 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 complaints, causing faster processing, lower transaction costs, greater visibility, and significant savings. From a business perspective, e-invoicing delivers benefits throughout the AR / AP process.
To begin with, there isn’t any mail to sort, distribute, or open. Not only this, e-invoicing eliminates costs associated with paper bills, envelopes, and postage. Plus, it requires significantly less time for you to process generate bill payment. Using the new system, you could make and distribute a complete batch of invoices with only a few clicks. (Source: Pay Simple)
Next, there isn’t any data entry required. Since payment arrives in the buyer’s accounts payable system automatically, the accounts payable clerk doesn’t have to enter the data manually. E-invoicing eliminates the potential for mistakes and ensures accuracy. Likewise, there’s no need to scan paper bills, another manual method that needs time and is prone to errors like illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By reduction of mail from the equation, you might be also eliminating several days from receipt to payment. Similarly, electronic payments speed the task and mean it’s not necessary to wait in line at the bank to deposit your cash.
Electronic invoices are easy to store and reference, without any physical file cabinets required. While you follow up with customers, it is possible to will include a link or attachment towards the original payment receipt, purchase order, or related documentation.
Advantages of E-Invoicing for Buyers
E-invoices offer benefits to your customers also. For instance, it is possible to give you a number of payment options including debit, credit, and ACH. Paperless system also paves the way to automated reminders full of integrated “pay now” buttons that connect to the bill. 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 money, a win-win both for sides.
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