Electric invoicing, or e-invoicing, as the name entails, is the electric exchange of invoice documents between a company and the client. Electronic batch invoicing will go beyond merely mailing a PDF receipt to a customer via email.
A genuine e-invoicing solution is an incorporated solution where an electronic invoice is sent and received smooth between your supplier's accounts receivable system and the customer's accounts payable system. E-invoicing documents are usually exchanged in EDI or XML types. (Source: E-Invoicing Essentials)
Why you should switch from a manual, paper-based system to an electric invoicing system? Paper-based system is notoriously time-consuming and susceptible to errors. As a result, paper invoicing will have higher costs and longer processing lifecycles.
Despite the common adoption of automation for most business functions, accounts payable and accounts receivable procedures remain mainly manual.
Advantages of E-Invoicing for Suppliers
Transitioning to Auto Invoice Delivery solves these problems, leading to faster handling, lower business deal costs, greater presence, and significant personal savings. From a company perspective, e-invoicing gives benefits throughout the AR / AP process.
For starters, there is no mail to sort, deploy, or available. Not just that, e-invoicing eliminates costs associated with newspaper expenses, envelopes, and postage. Plus, it requires much less time and energy to process generate invoice payment. Together with the new system, you can create and deliver a whole batch of invoices with just a few clicks.
Next, there is no data entry required. As the payment reaches the buyer's accounts payable system automatically, the accounts payable clerk doesn't need to enter the info yourself. E-invoicing eradicates the chances of faults and ensures reliability. Likewise, there is no need to scan newspaper expenses, another manual process that does take time and can be susceptible to mistakes such as illegible scans.
On the other hand, all invoices are instantly and safely delivered. Through the elimination of email from the formula, you are also eradicating several days from receipt to repayment. Similarly, electronic repayments speed the procedure and mean you don't need to wait in series at the bank to deposit your money.
PDF emailing is simple to store and refer, without physical file cabinetry required. Since you follow-up with customers, you can certainly include a hyperlink or connection to the initial repayment receipt, purchase order, or related paperwork.
Advantages of E-Invoicing for Buyers
Batch invoicing ensures benefits for your customers as well. For instance, you will offer a number of repayment options such as debit, credit, and ACH. Paperless system also starts the entranceway to robotic reminders filled with built in "pay now" switches that connect to the monthly bill. Your customers' accounts payable team will appreciate devoid of to manually enter in data or scan newspaper bill, too. Switching to e-invoicing will save you money and time, a win-win for both sides.
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