Reasons for Transitioning to E-Invoice
Electronic invoice or simply called as e-invoice is typically interchanged with digital invoice. Yes it is true that both of the invoices are capable of processing electronic payments from the point of its creation, there is actually a big difference between the two. For instance, e-invoice is made directly from online bank, straight from seller’s invoicing system or perhaps, via web form. Then from there, the file could be sent directly software of the buyer or have it downloaded.
The e-invoice would be delivered by the e-invoicing operator in which the operator may be compared to the postal system when sending paper invoices. Now if you are using invoicing software, you don’t necessarily have to open the software separately. The reason for this is that, e-invoice has its own e-invoicing address. By using e-invoicing, it can help in eliminating unnecessary steps such as accuracy check, manual data entry as well as swapping of software.
Electronic invoice is more of a structured data that is available in formats of EDI or XML that’s created by the invoicing software and it would not be considered as one if for example that the format is in Word, Excel or PDF, if it is scanned or if the documents were processed using optical character recognition.
As a matter of fact, there are many benefits associated to using e-invoice and some of them are discussed below:
Number 1. Save time – by using e-invoicing, a lot of unnecessary steps are taken out allowing you and your customers to save time in the process.
Number 2. Reduce costs – through paperless invoicing, there’s no need to pay for postal or paper fees. Moreover, by being able to save time using e-invoicing than emailing PDFs and using templates, you are literally saving time that can be used on more productive tasks.
Number 3. Reduce mistakes – any typos and mistakes are reduced since there are no manual input and more on automation. You don’t have to worry of the possibility that your invoice might be lost in the mail.
Number 4. Offer better customer service – it’s more convenient actually for customers to receive electronic invoice to their chosen platform. And according to research as well, you are likely going to save 90 percent on the processing cost if you will do this format than sticking to the traditional method. Aside from that, when there is shorter delivery time, customers can take advantage of the early payment discounts.
Number 5. Be paid faster – basically, there’s less time and effort for your customers to pay as you opt to use electronic invoice. Believe it or not, this makes them pay faster.