Electronic invoicing or simply e-invoicing is actually the exchange of invoice documents electronically which takes place between the customer and the supplier. E-invoicing has gone beyond sending PDF receipt to customers through email. True electronic invoicing solution is integrated solution where the invoice is received and transmitted between the accounts receivable system of the supplier and the account payable system by the customer. As a matter of fact, XML or EDI formats are what used for electronic invoicing documents.
There are some skeptics why is it a wise idea to move from the manual, paper based system to e-invoicing. The former is known to be time consuming and also, susceptible to errors. Thus, paper invoicing has higher probability to take longer lifecycles and more expensive too. While it is true that a number of different businesses have started jumping to the bandwagon still, both the accounts payable and receivable stayed manual.
Believe it or not, opting to use e-invoicing for supplies can provide you with many benefits.
By switching to electronic invoicing, it solves these issues which lead to faster processing, greater visibility, lower transaction costs and big savings. From a business standpoint, electronic invoicing is can provide numerous benefits via AP/AR process.
There’s no mail that have to be distributed, opened or sorted for beginners. Aside from that, e-invoicing gets rid of the associated costs with envelopes, postage and paper bills. Moreover, it makes it feasible to process bill payment a lot faster. With the new system, you can make and also, distribute entire batch of invoices in just clicks.
Yet another benefit is the fact that it doesn’t need data entry. There is basically no need for the accounts payable clerk to manually enter the data because the payments go straight automatically to the accounts payable system of the buyer. Electronic invoicing is aiming to provide high level of accuracy by means of reducing the possibility of making mistakes. Also, you don’t have to scan paper bills which is known to be time consuming procedure that is being dealt with when it comes to manual processes.
All invoices meanwhile are securely delivered. By being able to eliminate mail, you can be freed from days from the receipt to payment. With e-invoicing you don’t have to wait for long at bank to have your money deposited which speeds the entire process. As you try to follow up on customers, it is easy to do so because you simply need to include an attachment or link to original document.
On the buyer’s part, they can take advantage of e-invoicing by being presented with different payment methods like ACH, credit and debit etc.