How I Achieved Maximum Success with Services
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. Electronic invoicing documents are usually exchanged in XML or EDI formats.
You might wonder as well to why you must consider switching from the typical paper based system to e-invoicing. One reason to do so is that, the former is very open to errors and also, the process is time consuming. As such, the paper invoicing has a tendency to have longer processing lifecycles and higher costs as well. 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.
The truth is, there are numerous benefits of incorporating e-invoicing for supplies.
As you decide to switch to electronic invoicing, it will help solving these problems that can result to greater visibility, faster processing, big savings and lower transaction costs. Through the AP/AR process, a business can surely benefit big time from using electronic invoicing.
For beginners, there is no mail to distribute, open or sort. Aside from that, e-invoicing gets rid of the associated costs with envelopes, postage and paper bills. Aside from that, it requires less amount of time to process bill payment. With new system, you will be able to make and distribute a whole batch of invoices in just a few clicks.
The fact that it doesn’t require data entry is already a benefit. Since the payments go to the accounts payable system of the customer, there is no reason for the accounts payable clerk to enter the data by hand. Electronic invoicing eradicates the odds of making mistakes while providing high level of accuracy at the same time. 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.
Meanwhile, all invoices are securely and instantly delivered. By being able to eliminate mail, you can be freed from days from the receipt to payment. Also, e-invoicing speeds up the processes so there is no reason to wait in long lines at bank to have your money deposited. 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.
As for buyers, they can also benefit from e-invoicing like being provided with varieties of payment options similar to ACH, credit and debit etc.