Electronic invoicing, or e-invoicing, such as the name implies, is the electronic exchange of invoice documents from the supplier along with the customer. Electronic invoicing goes beyond merely sending a PDF receipt with a customer via email. A real e-invoicing solution is a solution where an electric invoice is transmitted and received seamless involving the supplier's a / r system as well as 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 for an electronic invoicing system? Paper-based method is notoriously time-consuming and prone to errors. Consequently, paper invoicing will have higher costs and longer processing lifecycles.
In spite of the widespread adoption of automation for a lot of 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 complaints, resulting in faster processing, lower transaction costs, greater visibility, and significant savings. From your business perspective, e-invoicing delivers benefits through the entire AR / AP process.
First off, there is no mail to sort, distribute, or open. Not only this, e-invoicing eliminates expenses related to paper bills, envelopes, and postage. Plus, it will require a lot less time to process generate bill payment. Together with the new system, you may create and distribute an entire batch of invoices with simply a number of clicks. (Source: Pay Simple)
Next, there's no data entry required. Because the payment arrives in the buyer's accounts payable system automatically, the accounts payable clerk need not go into the data manually. E-invoicing eliminates the chance of mistakes and ensures accuracy. Likewise, there's no need to scan paper bills, another manual process that needs time and could be prone to errors for example illegible scans.
Meanwhile, all invoices are instantly and securely delivered. By eliminating mail from the equation, you're also eliminating a few days from receipt to payment. Similarly, electronic payments speed the task and mean it's not necessary to wait in the bank to deposit your money.
Electronic invoices are really easy to store and reference, with no physical file cabinets required. Because you telephone customers, it is simple to add a link or attachment to the original payment receipt, purchase order, or related documentation.
Advantages of E-Invoicing for Buyers
E-invoices offer benefits on your customers as well. For instance, you can give a various payment options like debit, credit, and ACH. Paperless system also paves the way to automated reminders complete with integrated "pay now" buttons that connect to the check. 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 for sides.
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