Benefits Of Electronic Invoicing For Businesses

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31 May 2022

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Electronic invoicing, or e-invoicing, such as the name implies, could be the electronic exchange of invoice documents from your supplier as well as the customer. Electronic invoicing goes beyond merely sending a PDF receipt to a customer via email. A genuine e-invoicing solution is a solution where a digital invoice is transmitted and received seamless relating to the supplier's a / r system as well as the customer's accounts payable system. E-invoicing documents are usually exchanged in EDI or XML formats. (Source: E-Invoicing Basics)

Why switch coming from a manual, paper-based system to an electronic invoicing system? Paper-based method is notoriously time-consuming and vulnerable to errors. Therefore, paper invoicing will 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).

Advantages of E-Invoicing for Suppliers

Switching to e-invoicing solves these issues, causing faster processing, lower transaction costs, greater visibility, and significant savings. From the business perspective, e-invoicing delivers lots of benefits throughout the AR / AP process.

For starters, there's no mail to sort, distribute, or open. Not only this, e-invoicing eliminates costs associated with paper bills, envelopes, and postage. Plus, it will take a smaller amount time for you to process generate bill payment. Using the new system, you may earn and distribute a complete batch of invoices with a couple of clicks. (Source: Pay Simple)

Next, there is no data entry required. Considering that the payment comes to the buyer's accounts payable system automatically, the accounts payable clerk need not enter the data manually. E-invoicing eliminates the potential for mistakes and ensures accuracy. Likewise, you needn't scan paper bills, another manual procedure that needs time and can be prone to errors such as illegible scans.

Meanwhile, all invoices are instantly and securely delivered. Through the elimination of mail in the equation, you might be also eliminating a few days from receipt to payment. Similarly, electronic payments speed the task and mean you don't need to wait in line in the bank to deposit your money.

Electronic invoices are simple to store and reference, without having physical file cabinets required. While you phone customers, you can actually add a link or attachment on the original payment receipt, purchase order, or related documentation.

Advantages of E-Invoicing for Buyers

E-invoices offer benefits on your customers too. As an example, you can give a number of payment options including debit, credit, and ACH. Paperless system also opens the door to automated reminders complete with integrated "pay now" buttons that hyperlink 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 expense, a win-win for both sides.

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