E Invoicing System: Should Your Business Invest in It?

It is true that e-invoicing is the present and the future of world of invoicing. There are manifold reasons why e-invoicing is better compared to that of emailing pdfs or the traditional paper invoices. While e-invoicing can have some limitations, the pros outstrip the cons any day.  After all, if your business can enhance the growth and become better with the advanced ways of working, you must not miss out on it.

You can easily get a good e invoicing system from professional e invoicing solution providers for your business. And if you are still thinking about what really is e invoicing and all then keep on reading and know more.

What do you mean by an e-invoice?

An electronic invoice, or an e-invoice, is mostly confused with a digital invoice. Both can be processed electronically from creation to payment, however, there is a huge difference between these two. An e-invoice is formed up in the seller’s invoicing system, online bank or otherwise in a web-based form. From there, the e-invoice file cannot be either downloaded or sent directly to the buyer’s software.

The e-invoice gets delivered through an e-invoicing operator. You can compare the operator to the postal system when sending paper invoices. However, in case you are using invoicing software, you do not require to open the operator’s software separately. Every e-invoice recipient also possesses its own e-invoicing address.

Once you embrace e-invoicing, unnecessary steps such as manual data entry, the accuracy check, and swapping software get removed. In order for that to get possible, the invoice need to be in a format the purchaser’s system can process. The e-invoice files are available as structured data. Some commonly used formats that you may find are XML and EDI.

An e-invoice is:

• Structured invoice data in formats such as XML or EDI, formed up in invoicing software.
• Structured invoice information issued using web-based forms.

Then an e-invoice is NOT:

• Scanned paper invoices.
• Unstructured invoice data in formats such as PDF, Excel, or Word.
• Documents that get processed with optical character recognition.

Convincing reasons you should use e invoicing in your business

Save time

With e-invoicing, many needless steps are cut out of the invoicing process. Both you and your consumer can save time using online e-invoicing software.

Less costs

With paperless invoicing, you do not need to pay for paper or for postal fees. Further, by saving time with e-invoicing instead of using emailing pdfs and templates, you save working time. Concentrate on other value-adding endeavours instead. You should know that time is money.

Less mistakes

By minimalizing manual input and increasing automation, mistakes and typos get lessened . You don’t need to worry about your invoice getting lost in the mail.

Provide better customer service

It is easier for your customer to get an e-invoice to their desired platform. As per a research , receiving an e-invoice instead of a paper invoice saves up to 90% on procedure costs. Also, when the delivery time is shorter, your customer will have better possibilities to take advantage of early payment discounts.

Less costs

For suppliers, the acceptance of e-invoicing helps significantly reduce costs associated with storage, processing, printing, and delivery of paper invoices. E-invoicing’s can increase accuracy and it also means fewer customer services calls needed.

In other words, thanks to the discount, or even complete elimination, of manual data re-entry, categorization, validation, and registering of invoices, e-invoicing may offer considerable cost savings of 60 to 80 per cent.   Don’t you think that is really impressive?

You get paid faster

The e-invoice can be at the customer straightaway. Also, it asks for less effort and time effort to pay an electronic invoice. Because of this , the customer will most likely pay faster.

Moreover, a buyer can make the most of early pay discounts. Suppliers are mostly willing to offer a discount in exchange for an early payment. E-voicing permit for quicker processing and hence shorter payment cycles. As a result, purchasers who use e-invoices have better access to discount opportunities.

Less paper consumption

Why should you waste resources like paper when it is possible for you to send documents electronically? Right? You can be sure that there are no piled up or stacks of files laying on your desks once you have this system of invoicing. Moreover, e invoicing will ensure that nobody need to use paper in any format when dealing with you. Hence you can save a lot of paper.

Better account settlement

The settlement of invoices issued to customers against the payments got is one of the tests that every supplier faces. Customers can blend multiple invoices into one single payment. On top of that, such payment sum can be dissimilar from the original invoices because of diverse reasons, like customers claim deductions because of damaged goods.

So, a supplier may issue five invoices of $2,000 each and get a single payment of $9,000, and need to contact the customer’s AP (accounts payable) department to elucidate details about the payment.

With proper e-invoicing, customers can send the details of the invoices paid coupled with the payments to help simplify account reconciliation.

Less disputes and rejected invoices

Invoice disputes and rejections are pricy , time-consuming to resolve and can head to late payments. With e-invoicing, data from the supplier’s accounts receivable  system is conveyed directly to the customer’s AP system, lessen the risk of errors caused by data re-entry. Hence , the potential of invoices being rejected is lessened.

Better customer satisfaction

All thanks go to e-invoicing’s faster processing and fewer payment issues, suppliers can offer a higher level of customer service. The outcome is a higher rate of customer retention. After all, if you can keep your customers contented and satisfied, you can be sure that you get the best experience for your business and everyone.

Conclusion

To sum up,  you should invest in a gst e invoicing solution and ensure that you get the best outcomes for you. After all, your business can really speed up things and save a lot of time and money with the usage of e invoicing.