Important things about Electronic Invoicing for Companies
Electronic invoicing, or e-invoicing, like the name implies, could be the electronic exchange of invoice documents between a supplier and also the customer. Electronic invoicing goes past merely sending a PDF receipt into a customer via email. A true e-invoicing option would be a built-in solution where an electronic invoice is transmitted and received seamless between the supplier's a / r system as well as the customer's accounts payable system. E-invoicing documents are typically exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch from the manual, paper-based system to an electronic invoicing system? Paper-based method is notoriously time-consuming and susceptible to errors. As a result, paper invoicing tends to have higher costs and longer processing lifecycles.
In spite of the widespread adoption of automation for several business processes, accounts payable and a / r processes remain largely manual (Source: Dolphin Corp).
Benefits of E-Invoicing for Suppliers
Switching to e-invoicing solves these complications, producing faster processing, lower transaction costs, greater visibility, and significant savings. From your business perspective, e-invoicing delivers lots of benefits through the entire AR / AP process.
To begin with, 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 significantly less time and energy to process generate bill payment. Together with the new system, you may earn and distribute a whole batch of invoices with simply a number of clicks. (Source: Pay Simple)
Next, there's no data entry required. Because the payment comes to the buyer's accounts payable system automatically, the accounts payable clerk doesn't have to enter in the data personally. E-invoicing eliminates the opportunity for mistakes and ensures accuracy. Likewise, there's no need to scan paper bills, another manual method that needs time and could be susceptible to errors including illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By eliminating mail from the equation, you are also eliminating several days from receipt to payment. Similarly, electronic payments speed the method and mean it's not necessary to wait in line with the bank to deposit your dollars.
Electronic invoices are really simple to store and reference, without physical file cabinets required. When you follow up with customers, you can actually will include a link or attachment for the original payment receipt, purchase order, or related documentation.
Advantages of E-Invoicing for Buyers
E-invoices offer benefits on your customers at the same time. As an example, you'll be able to give a number 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 url to the check. Your customers' accounts payable team will appreciate lacking to manually enter data or scan paper bill, too.
Switching to e-invoicing saves time and expense, a win-win both for sides.
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