Looking On The Bright Side of Business
What You Need to Know about Electronic Invoicing.
Electronic invoicing also known as e-invoicing is a way of delivering bills and other information to the clients through the use of electronic communications which is usually the internet. As more people continue to adopt and accept e-commerce, there is the growing concern for security. Because of this, the need to shift to electronic invoicing is accelerated. On the other hand, many companies provide electronic invoicing software as well as services.
Cloud-based software are online platforms that help to raise online invoices. Such a software makes it easy to prepare and send the invoice to emails of customers directly online. Although electronic invoices are usually online invoices, online invoicing is not necessarily electronic invoicing.
E-invoices should, however, include the necessary information concerning the sale. As a result, e-invoice becomes identical to an online invoice. The e-invoices should, however, be sent in Electronic Data Interchange format or XML format. As a result, a creator signature is possible. It is also possible to stamp the sending date and time on the e-invoice. Once the invoice has been sent, it cannot be changed.
It is now possible for every supplier to use e-invoices through Cloud Trade invoicing. Due to the inefficiencies that arise from paper invoices, many businesses have shifted to electronic invoicing. There are, however, various reasons for shifting to electronic invoicing.
1. It becomes easier to capture digital invoices.
When invoices are sent in paper and e-mail formats, it causes unnecessary complexities and costs. This is because if the invoices are received through the mail, such document must be sorted, opened, and keyed into the account payable system. On the other hand, the invoices sent via email require the document to be saved first, the sorted and may as well be printed and keyed to the system if you do not have the necessary technology to extract such data. With e-invoicing, however, such complexities are eliminated.
2. Validation of invoices is automated.
Usually, account payable organizations must validate the invoices before they can process and approve the payments. Validations is usually done to ensure the vendor is actually existing and standing. Also, validation ensures the post office number and the name of the vendor match. Electronic invoices are, however, automatically validated using through date capture technologies. Otherwise, you would require manual validation and data entry.
3. Self-service is possible.
Hiring staff for payment inquiries is usually expensive. For example, the vendor needs to confirm whether the buyer has received the invoice and the approval. That would actually consume time and incur costs responding to the supplier. However, such expenses are, however, eliminated by e-invoicing while payment issues can be solved online.