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The Benefits of Electronic Invoices

theinvoiceguideAug 15, 2018, 2:04:38 AM

A business has to deal with thousands of invoices every year for their suppliers. However, most businesses still use invoices that are in either paper or e-mail format. This form of invoicing often leads to a lot of inefficiencies - from delays from the time it takes the invoice to properly make its way to the supplier to the manual inputting necessary to properly process the invoice. Electronic invoicing allows a business to automate the processing of their invoices. When a business chooses to migrate to an electronic invoicing system like Openfactura, there are considerable financial and productivity benefits in store for them. Here are some of the most important benefits of electronic invoices.

First, electronic invoices improves the cash management process. On the side of the suppliers, paper invoices can take some time before it appears on their system. Paper and e-mail invoices have to be documented manually by their employees before they can start the payment process. There are many instances where paper and e-mail invoices get lost during the approval process. Because these invoices are not immediately visible, managers lack the kind of data needed to forecast their costs properly.

For invoices involving bigger amounts, any delay of this sort can lead to significant losses. Unless you are paid on time, you may be looking a huge cash deficit that can mean that operations will be at a standstill. You may need to borrow at a huge premium or turn to expensive financing options just to get the cash more quickly until you can get paid quickly by the supplier. This means that you would have to eat the losses yourself because of the unnecessary delay caused by this kind of system. An electronic invoicing system adequately deals with this kind of issue and improves upon, ensuring that invoices are readily visible to avoid any delays that could hinder you from getting paid on time.

Second, electronic invoices also translate to a more productive use of your employees' time. Remember that processing paper invoices can take up a significant amount of time of your employee's work hours. When you choose to automate the process, you free up your employee's time and allow him or her to focus more on operational processes and other more necessary job functions. You can also save money because you do not have to hire an employee whose only job is to keep up with your paper or e-mail invoices. Discover more here: https://en.wikipedia.org/wiki/Invoice.