Callesen Cameron posted an update 4 months, 1 week ago
Electronic invoicing, or e-invoicing, such as the name implies, will be the electronic exchange of invoice documents from a supplier as well as the customer. Electronic invoicing goes beyond merely sending a PDF receipt to some customer via email. A real e-invoicing option is a solution where an electronic invoice is transmitted and received seamless between the supplier’s a / r system and also the customer’s accounts payable system. E-invoicing documents are typically 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 at risk of errors. As such, paper invoicing will 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 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 lots of benefits through the AR / AP process.
First off, there’s no mail to sort, distribute, or open. Not just that, e-invoicing eliminates expenses related to paper bills, envelopes, and postage. Plus, it will require a lot less time for you to process generate bill payment. Using the new system, you may earn and distribute a full batch of invoices with simply several clicks. (Source: Pay Simple)
Next, there is not any data entry required. Because the payment comes to the buyer’s accounts payable system automatically, the accounts payable clerk doesn’t need 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 procedure that will take time and could be susceptible to errors like illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By reducing mail in the equation, you’re also eliminating several days from receipt to payment. Similarly, electronic payments speed the task and mean it’s not necessary to wait on the bank to deposit your money.
Electronic invoices are easy to store and reference, without physical file cabinets required. As you contact customers, it is possible to add a link or attachment to the original payment receipt, purchase order, or related documentation.
Advantages of E-Invoicing for Buyers
E-invoices offer benefits for the customers also. As an example, you are able to give you a variety 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 the check. Your customers’ accounts payable team will appreciate without having to manually enter data or scan paper bill, too.
Switching to e-invoicing saves time and cash, a win-win for sides.
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