Out of all the various trends, we come across every day in the world of business, e-invoicing, or electronic invoicing looks like it’s here to stay. Like most of the trends today, e-invoicing has become popular, thanks to the digitization of the business world. However, a distinction should be made between e-invoicing and other forms of digital invoices. E-invoicing offers a comprehensive digital process in which the data is seamlessly integrated between both the supplier’s and the buyer systems. It’s a file created in specific formats using invoicing software, not a scanned paper or a PDF document. When used appropriately, you’ll get to enjoy multiple benefits of e-invoicing. Here are some reasons to tempt you into switching to e-invoicing right away:
The process of invoicing is quite tiresome for most businesses. You need to create the invoice, ensure its accuracy, print it, send it to the buyer, wait until the payment is made, and, then, enter the payment into your servers. E-invoicing, on the other hand, bypasses the hassle associated with traditional invoicing.
As explained by Digital Lessons in 90 Seconds at Digital-Invoice-Template.com, you can use a ready-to-use, downloadable, and customizable e-invoice template, instead of creating it from scratch. Moreover, you’ll avoid the hassle of printing and sending it to the buyer, as your e-invoice can be billed on the spot, and the payment can be made right away, keeping your cash flow accurate and well documented. For instance, companies that embraced e-invoicing in Singapore have experienced significant improvements in their billing processes, with streamlined workflows and faster payment cycles, setting a prime example for businesses worldwide.
Think about the amount of time and money, as well as the various resources, which go into your invoicing process. How many papers do you need to print? How many working hours are put into data entry? What are the resources utilized to finalize the process? Whether it’s direct cash spent or wasted time and human resources, all of this is costing you a gazillion dollars. You’re better off investing all of these resources into maximizing your output instead.
Traditional invoices depend on a fair amount of data entry to be finalized. The same goes for scanned invoices or digital invoices that are downloaded in extensions such as .doc, .pdf, or .xlsx. To enter the invoices into the system, you need to enter the data manually. In addition to being very time and effort consuming, this process gives a large room for human error. Switching to e-invoicing is, then, the best solution to prevent any human errors, with the added advantage of being more efficient.
The greatest thing about e-invoices is that they give you the ability to access them anywhere, using any of your smart devices. You get to track the status of the invoice, with some types of software even enabling you to know when your buyer has opened the invoice. You’ll receive the payment as soon as it’s been made, and you’ll be able to generate reports and analytics about your finances periodically. All of these features will serve you in gaining real-life insights into your operations, enabling you to further optimize them.
As a supplier, you know that the reconciliation of your customers’ invoices is one of the biggest struggles you face. Not every invoice is paid on the spot or on its own; sometimes, your customers will deliver payment on multiple invoices all at once. Other times, the amount paid will be lesser than the one documented in the invoice, whether it’s due to active promotions or claims of damaged goods. With an e-invoice system, you’ll have a single place from which you can monitor every customer, along with their history and multiple invoices. On the plus side, this will enable you to provide better customer service.
You might be surprised to find this reason on this list, but believe it or not, e-invoicing is one of the best ways to eliminate waste and improve the environmental impact of your business. All of the printing, papers, and resources that go into creating the invoice will be eliminated, which directly translates into a reduced carbon footprint. If you won’t do it for any of the amazing reasons we’ve mentioned above, then do it for the environment!
The switch to e-invoicing, or electronic invoicing, is one of the blooming trends in the business world, for good reasons. Not only does it provide your business with a more efficient and cost-effective way to operate, but it also gives you better access to and control of your invoices. Furthermore, it enables you to reconcile your accounts better, delivering better customer service in the process. If not for anything else, then perhaps you’ll switch to it after realizing how much carbon footprint you’ll reduce by doing so!