Great things about Electronic Invoicing for BusinessesElectronic invoicing, or e-invoicing, much like 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 into a customer via email. A real e-invoicing option would be an internal solution where an electronic invoice is transmitted and received seamless involving the supplier's accounts receivable system as well as the customer's accounts payable system. E-invoicing documents are usually exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch from a manual, paper-based system with an electronic invoicing system? Paper-based strategy is notoriously time-consuming and vulnerable to errors. As such, paper invoicing is likely 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 complications, resulting in faster processing, lower transaction costs, greater visibility, and significant savings. From your business perspective, e-invoicing delivers lots of benefits through the AR / AP process.
First of all, there isn't any mail to sort, distribute, or open. Not only that, e-invoicing eliminates costs associated with paper bills, envelopes, and postage. Plus, it requires a lot less time and energy to process generate bill payment. With the new system, you could make and distribute a complete batch of invoices with simply a number of clicks. (Source: Pay Simple)
Next, there isn't any data entry required. Since the payment comes to the buyer's accounts payable system automatically, the accounts payable clerk need not type in the data by hand. E-invoicing eliminates the opportunity for mistakes and ensures accuracy. Likewise, you don't need to scan paper bills, another manual procedure that takes time and is vulnerable to errors like illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By eliminating mail from your equation, you're also eliminating several 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 hard earned money.
Electronic invoices are really easy to store and reference, with no physical file cabinets required. As you contact customers, you can easily add a link or attachment towards the original payment receipt, purchase order, or related documentation.
Advantages of E-Invoicing for Buyers
E-invoices offer benefits on your customers too. For example, you are able to offer a selection of payment options including 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 devoid of 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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