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Electronic invoicing, or e-invoicing, much like the name implies, will be the electronic exchange of invoice documents from a supplier as well as the customer. Electronic invoicing goes beyond merely sending a PDF receipt into a customer via email. An authentic e-invoicing option is a built-in solution where an electronic invoice is transmitted and received seamless between your supplier’s a / r system along with 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 a electronic invoicing system? Paper-based product is notoriously time-consuming and prone to errors. Therefore, paper invoicing will have higher costs and longer processing lifecycles.

In spite of the widespread adoption of automation for several 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, producing faster processing, lower transaction costs, greater visibility, and significant savings. From the business perspective, e-invoicing delivers many benefits through the entire AR / AP process.

For starters, there is no mail to sort, distribute, or open. Not only that, e-invoicing eliminates costs associated with paper bills, envelopes, and postage. Plus, it will take a smaller amount time for you to process generate bill payment. Using the new system, you may earn and distribute a whole batch of invoices with a couple of clicks. (Source: Pay Simple)

Next, there is no data entry required. Since payment arrives in the buyer’s accounts payable system automatically, the accounts payable clerk does not need to enter the data by hand. E-invoicing eliminates the chance of mistakes and ensures accuracy. Likewise, you needn’t scan paper bills, another manual process that will take time and is susceptible to errors such as illegible scans.

Meanwhile, all invoices are instantly and securely delivered. By eliminating mail through the equation, you’re also eliminating a couple of days from receipt to payment. Similarly, electronic payments speed the task and mean you don’t need to wait in line at the bank to deposit your cash.

Electronic invoices are simple to store and reference, without any physical file cabinets required. While you follow up with customers, you can actually add a link or attachment on the original payment receipt, purchase order, or related documentation.

Advantages of E-Invoicing for Buyers

E-invoices offer benefits for the customers too. For example, you’ll be able to give you a various payment options like debit, credit, and ACH. Paperless system also paves the way to automated reminders filled with integrated “pay now” buttons that url to the check. Your customers’ accounts payable team will appreciate devoid of to manually enter data or scan paper bill, too.

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

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