Cummings Farley posted an update 2 months, 1 week ago
Electronic invoicing, or e-invoicing, just like the name implies, will be the electronic exchange of invoice documents between a supplier as well as the customer. Electronic invoicing goes beyond merely sending a PDF receipt to a customer via email. A true e-invoicing solution is an internal solution where a digital invoice is transmitted and received seamless between your supplier’s a / r system along with the customer’s accounts payable system. E-invoicing documents are generally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch coming from a manual, paper-based system to a electronic invoicing system? Paper-based method is notoriously time-consuming and vulnerable to errors. As such, paper invoicing tends to 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~conveniences of E-Invoicing for Suppliers
Switching to e-invoicing solves these issues, leading to faster processing, lower transaction costs, greater visibility, and significant savings. From a business perspective, e-invoicing delivers lots of benefits during the entire AR / AP process.
For starters, there is no mail to sort, distribute, or open. Not only that, e-invoicing eliminates expenses associated with paper bills, envelopes, and postage. Plus, it requires much less time for it to process generate bill payment. With the new system, you may earn and distribute a complete batch of invoices with a couple of clicks. (Source: Pay Simple)
Next, there’s no data entry required. Since payment arrives in the buyer’s accounts payable system automatically, the accounts payable clerk does not need to enter in the data yourself. 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 can be susceptible to errors including illegible scans.
Meanwhile, all invoices are instantly and securely delivered. Through the elimination of mail in the equation, you might be also eliminating several days from receipt to payment. Similarly, electronic payments speed the process and mean you won’t need to wait on the bank to deposit your hard earned money.
Electronic invoices are simple to store and reference, with no physical file cabinets required. Because you phone customers, you can easily will include a link or attachment to the original payment receipt, purchase order, or related documentation.
Important things about E-Invoicing for Buyers
E-invoices offer benefits on your customers as well. For instance, you are able to give you a selection of payment options such as debit, credit, and ACH. Paperless system also opens the door to automated reminders filled with integrated “pay now” buttons that hyperlink to the bill. Your customers’ accounts payable team will appreciate without having to manually enter data or scan paper bill, too.
Switching to e-invoicing saves money and time, a win-win either way sides.
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