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Important Things About Electronic Invoicing For Companies

Electronic invoicing, or e-invoicing, just like the name implies, is the electronic exchange of invoice documents from your supplier as well as the customer. Electronic invoicing goes past merely sending a PDF receipt to a customer via email. A true e-invoicing option would be an integrated solution where an electric invoice is transmitted and received seamless relating to the supplier's a / r 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 coming from a manual, paper-based system to an electronic invoicing system? Paper-based strategy is notoriously time-consuming and prone to errors. As a result, paper invoicing is likely to have higher costs and longer processing lifecycles.

In spite of the widespread adoption of automation for a lot of business processes, accounts payable and accounts receivable processes remain largely manual (Source: Dolphin Corp).

Important things about E-Invoicing for Suppliers

Switching to e-invoicing solves these problems, producing faster processing, lower transaction costs, greater visibility, and significant savings. From a business perspective, e-invoicing delivers advantages through the AR / AP process.

First of all, there is not any mail to sort, distribute, or open. Not only that, e-invoicing eliminates expenses associated with paper bills, envelopes, and postage. Plus, it will take a smaller amount time for it to process generate bill payment. With all the new system, you can create and distribute a full batch of invoices with a few clicks. (Source: Pay Simple)

Next, there isn't any data entry required. Since the payment arrives in the buyer's accounts payable system automatically, the accounts payable clerk does not need to enter the data personally. E-invoicing eliminates the opportunity of mistakes and ensures accuracy. Likewise, there's no need to scan paper bills, another manual process that needs time and can be prone to errors like illegible scans.

Meanwhile, all invoices are instantly and securely delivered. By reducing mail from the equation, you might be also eliminating a few days from receipt to payment. Similarly, electronic payments speed the method and mean you don't have to wait at the bank to deposit your dollars.

Electronic invoices are really easy to store and reference, with no physical file cabinets required. As you contact customers, it is possible to will include a link or attachment on the original payment receipt, purchase order, or related documentation.

Advantages of E-Invoicing for Buyers

E-invoices offer benefits for your customers as well. By way of example, you'll be able to offer a selection of payment options like debit, credit, and ACH. Paperless system also opens the door to automated reminders full of integrated "pay now" buttons that link to the bill. Your customers' accounts payable team will appreciate lacking to manually enter data or scan paper bill, too.

Switching to e-invoicing saves money and time, a win-win both for sides.

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