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Benefits Of Electronic Invoicing For Companies

Electronic invoicing, or e-invoicing, just like the name implies, could be the electronic exchange of invoice documents from your supplier along with the customer. Electronic invoicing goes beyond merely sending a PDF receipt to some customer via email. An authentic e-invoicing solution is a solution where an electronic invoice is transmitted and received seamless between your supplier's accounts receivable 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 a manual, paper-based system with an electronic invoicing system? Paper-based system is notoriously time-consuming and at risk of errors. As such, paper invoicing is likely to have higher costs and longer processing lifecycles.

Despite the widespread adoption of automation for a lot of 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 complaints, leading to faster processing, lower transaction costs, greater visibility, and significant savings. From the business perspective, e-invoicing delivers 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 related to paper bills, envelopes, and postage. Plus, it will take much less time for it to process generate bill payment. Together with the new system, you may earn and distribute a whole batch of invoices with just a few clicks. (Source: Pay Simple)

Next, there is not any data entry required. Considering that the payment comes to the buyer's accounts payable system automatically, the accounts payable clerk doesn't have to enter the data manually. E-invoicing eliminates the potential for mistakes and ensures accuracy. Likewise, you don't need to scan paper bills, another manual procedure that needs time and could be vulnerable to errors including illegible scans.

Meanwhile, all invoices are instantly and securely delivered. By reduction of mail in the equation, you are also eliminating a couple of days from receipt to payment. Similarly, electronic payments speed the process and mean you don't need to wait in line at the bank to deposit your dollars.

Electronic invoices are really easy to store and reference, without any physical file cabinets required. As you telephone customers, you can actually add a link or attachment towards the original payment receipt, purchase order, or related documentation.

Benefits of E-Invoicing for Buyers

E-invoices offer benefits to your customers as well. As an example, you are able to provide a various payment options such as debit, credit, and ACH. Paperless system also opens the door to automated reminders full of integrated "pay now" buttons that url 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 time and expense, a win-win both for sides.

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