Electronic invoicing, or e-invoicing, such as the name implies, could be the electronic exchange of invoice documents from the supplier and also the customer. Electronic invoicing surpasses merely sending a PDF receipt to some customer via email. A true e-invoicing solution is a solution where an electric invoice is transmitted and received seamless involving the supplier's a / r system and also the customer's accounts payable system. E-invoicing documents are normally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)
Why switch from a manual, paper-based system to an electronic invoicing system? Paper-based strategy is notoriously time-consuming and prone to errors. Therefore, paper invoicing has a tendency to have higher costs and longer processing lifecycles.
Regardless of the widespread adoption of automation for several business processes, accounts payable and accounts receivable processes remain largely manual (Source: Dolphin Corp).
Advantages of~conveniences of E-Invoicing for Suppliers
Switching to e-invoicing solves these problems, leading to 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.
First off, there is not any mail to sort, distribute, or open. Not just that, e-invoicing eliminates expenses associated with paper bills, envelopes, and postage. Plus, it will require a smaller amount time for it to process generate bill payment. Together with the new system, you can create and distribute a whole batch of invoices with several clicks. (Source: Pay Simple)
Next, there is not any data entry required. Since the payment comes to the buyer's accounts payable system automatically, the accounts payable clerk doesn't have to type in the data manually. E-invoicing eliminates the opportunity for mistakes and ensures accuracy. Likewise, you don't need to scan paper bills, another manual procedure that needs time to work and is prone to errors for example illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By reducing mail from the equation, you're also eliminating several days from receipt to payment. Similarly, electronic payments speed the procedure and mean you don't have to wait in line with the bank to deposit your dollars.
Electronic invoices are easy to store and reference, with no physical file cabinets required. When you telephone customers, you can actually will include a link or attachment to the original payment receipt, purchase order, or related documentation.
Benefits of E-Invoicing for Buyers
E-invoices offer benefits for your customers at the same time. By way of example, it is possible to provide a selection of payment options such as debit, credit, and ACH. Paperless system also opens the door to automated reminders complete with integrated "pay now" buttons that hyperlink 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 money, a win-win both for sides.
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