Advantages of Electronic Invoicing for Organizations

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 to some customer via email. A true e-invoicing option would be a solution where a digital invoice is transmitted and received seamless relating to the supplier's accounts receivable system and also the customer's accounts payable system. E-invoicing documents are normally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)

Why switch from the manual, paper-based system to an electronic invoicing system? Paper-based strategy is notoriously time-consuming and vulnerable to errors. Consequently, paper invoicing will have higher costs and longer processing lifecycles.

Regardless of the widespread adoption of automation for many 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. Coming from a business perspective, e-invoicing delivers lots of benefits through the AR / AP process.

First off, there is no mail to sort, distribute, or open. Not only this, e-invoicing eliminates expenses associated with paper bills, envelopes, and postage. Plus, it takes much less time for it to process generate bill payment. Using the new system, you may create and distribute a complete batch of invoices with only a few clicks. (Source: Pay Simple)

Next, there is not any data entry required. Since payment arrives in the buyer's accounts payable system automatically, the accounts payable clerk doesn't have to type in the data yourself. E-invoicing eliminates the opportunity of mistakes and ensures accuracy. Likewise, there's no need to scan paper bills, another manual method that will take time and is vulnerable to errors such as illegible scans.

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

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

Benefits of E-Invoicing for Buyers

E-invoices offer benefits to your customers at the same time. By way of example, you can provide a various payment options including debit, credit, and ACH. Paperless system also opens the door to automated reminders detailed with integrated "pay now" buttons that link to the check. Your customers' accounts payable team will appreciate not having to manually enter data or scan paper bill, too.

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

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