E-invoicing is a process in which an invoice is issued, received and processed electronically. It is digital from its creation in the financial system by the issuer until it is received and processed by the recipient. E-invoicing methods are currently used by many including trading partners, such as customers and their suppliers, to present and monitor transactional documents between one another and ensure the terms of their trading agreements are being met. Besides, it also helps both buyers and suppliers to reduce their cost effectively.
As a business or enterprise, it can be rather difficult to keep track of every transactional document of every customer as the workload involved can be overwhelming and exhausting which may lead to many possible problems such as errors in invoice issuing, delayed invoice, late payments, overlooked payments-to-be-made and many more related consequences. Hence, by implying E-invoicing system into a business, not only does it help to save down on your hustle but it provides more than that!
Here are 7 reasons on how E-invoicing can help you in managing your business:
1. Cost Saving
The adoption of e-invoicing helps a company to significantly reduce costs associated with printing, storage, processing, and delivery of paper invoices. The paper you used to print your invoices on, the postage fee you paid for the delivery of your invoices to your customers, you can save your money on this when e-invoicing is capable of overcoming these problems for you!
2. Better Account Reconciliation
As a supplier, it is never easy to reconcile the payments received from customers against the original invoices submitted. Customers often consolidate a number of invoices and allow a single bank to transfer, so suppliers must call the customer’s account payable department to understand the details behind the funds received. Now with e-invoicing, customers are able to send the details of the invoices paid along with the payments to help simplify account reconciliation.
3. Higher Efficiency
Traditionally, paper invoices were first received from the supplier and the customers had to sort, re-key and submit the received invoices for approval. This process may take time and still consists of the risk of the invoices being lost. However, with e-invoices, buyer’s system can be immediately accessed, routed and approved much faster. Consequently, payments are made on time, which in turn improves cash flow.
4. Increased Accuracy
When an e-invoice system is used, there are fewer steps involved, and therefore less friction, in the invoice process. In today’s era where our lives are very much depended on the convenience brought by technology, e-invoicing seems to not only fulfill such requirements but it also minimizes possible human errors and more likely to be accurate than paper invoices.
5. Environmental Friendly
As natural resources are depleting at a fast rate over the years, it is important for us to realize our role in helping to reserve such resources. With e-invoices, you can now replace paper invoices with paperless invoices and cut down on the use of paper! As a matter of fact, the manufacturing of paper products has been known to have significantly contributed to the act of deforestation, so by implying e-invoicing method, not only does your company helps in saving the trees but it also shows that your company has taken social responsibility when it comes to preserving the environment.
6. Improved Customer Satisfaction
Remember the time taken for your invoices to be sent to your customer and the consistent payment issues arose? It caused a lot of trouble and hustle to you and your company, didn’t it? But don’t worry, as e-invoicing allows faster processing and fewer payment issues, suppliers can now provide a higher level of customer service, in return for a higher rate of customer retention.
7. Better Management of Sales Team
Many people think that E-invoicing only brings convenience to business in terms of issuing invoices, but do you know? If you’re constantly understaffed, having yourself to manage everything going on in your business day in and day out may be a little too heavy for you. But, what you do not realize is that many e-invoicing nowadays provide assistance to you and your business to manage your sales team better where it monitors and motivates your sales force with well-organized management. As sales team generates most of the business’s income, there’s no doubt that it is important to ensure that the sales target of the month is met with great quality of work.
It has never been easy to manage a business, especially when it is a start-up business. So why spend that precious time of yours worrying about something that should not be a problem to you in the first place? Work smart with technology, and it will guarantee you convenience and better return! Try your hands on E-invoicing now and experience a whole new level of easiness, less hustle and more time for your business and yourself!