Albertsen Harmon posted an update 6 months ago
Electronic invoicing, or e-invoicing, such as the name implies, will be the electronic exchange of invoice documents from the supplier and the customer. Electronic invoicing surpasses merely sending a PDF receipt to some customer via email. An authentic e-invoicing option would be an internal solution where an electronic invoice is transmitted and received seamless involving the supplier’s accounts receivable system and also 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 with an electronic invoicing system? Paper-based system is notoriously time-consuming and vulnerable to errors. As a result, paper invoicing tends to have higher costs and longer processing lifecycles.
Despite the widespread adoption of automation for several business processes, accounts payable and accounts receivable processes remain largely manual (Source: Dolphin Corp).
Advantages of E-Invoicing for Suppliers
Switching to e-invoicing solves these complaints, leading to faster processing, lower transaction costs, greater visibility, and significant savings. From your business perspective, e-invoicing delivers advantages through the 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 will take a lot less time for you to process generate bill payment. Using the new system, you may earn and distribute a complete batch of invoices with just several clicks. (Source: Pay Simple)
Next, there is no data entry required. Considering that the payment arrives in the buyer’s accounts payable system automatically, the accounts payable clerk doesn’t have to type in the data yourself. E-invoicing eliminates the chance of mistakes and ensures accuracy. Likewise, you don’t need to scan paper bills, another manual process that needs time to work and can be susceptible to errors including illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By reducing mail from your equation, you might be also eliminating a couple of days from receipt to payment. Similarly, electronic payments speed the method and mean you don’t have to wait in line at the bank to deposit your dollars.
Electronic invoices are easy to store and reference, with no physical file cabinets required. While you phone customers, it is simple to include a link or attachment to the original payment receipt, purchase order, or related documentation.
Advantages of~conveniences of E-Invoicing for Buyers
E-invoices offer benefits to your customers also. For instance, you are able to give you a selection of payment options like debit, credit, and ACH. Paperless system also paves the way to automated reminders full of integrated “pay now” buttons that hyperlink to into your market. Your customers’ accounts payable team will appreciate lacking to manually enter data or scan paper bill, too.
Switching to e-invoicing saves money and time, a win-win for both sides.
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