Electronic invoicing, or e-invoicing, just like the name implies, could be the electronic exchange of invoice documents from a supplier and the customer. Electronic invoicing surpasses merely sending a PDF receipt into a customer via email. A true e-invoicing option is a solution where an electric invoice is transmitted and received seamless involving the supplier’s a / r system along with the customer’s accounts payable system. E-invoicing documents are generally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)

Why switch coming from a manual, paper-based system to a electronic invoicing system? Paper-based system is notoriously time-consuming and susceptible to errors. Therefore, paper invoicing will have higher costs and longer processing lifecycles.

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

Benefits of E-Invoicing for Suppliers

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

First of all, there isn’t any mail to sort, distribute, or open. Not just that, e-invoicing eliminates costs associated with paper bills, envelopes, and postage. Plus, it will require a lot less time for it to process generate bill payment. With all the new system, you may create and distribute a complete batch of invoices with just a number of clicks. (Source: Pay Simple)

Next, there isn’t any data entry required. Since payment comes to the buyer’s accounts payable system automatically, the accounts payable clerk does not need to enter the data by hand. E-invoicing eliminates the chance of mistakes and ensures accuracy. Likewise, there’s no need to scan paper bills, another manual method that will take time and is prone to errors like illegible scans.

Meanwhile, all invoices are instantly and securely delivered. By eliminating mail in the equation, you’re also eliminating a few days from receipt to payment. Similarly, electronic payments speed the method and mean you won’t need to wait in the bank to deposit your cash.

Electronic invoices are really simple to store and reference, with no physical file cabinets required. As you telephone customers, it is simple to 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 for the customers too. For example, you’ll be able to offer a number of payment options like debit, credit, and ACH. Paperless system also paves the way to automated reminders complete with integrated “pay now” buttons that url to the balance. 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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