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. Many people are adopting and accepting e-commerce while still there are concerns about security. This has accelerated the shift to electronic invoicing. Again, more businesses are now offering the electric invoicing programs and services.
Also, online invoicing is a way of raising invoices through online platforms such as cloud-based software. These programs help to create and send the invoices with ease and to the clients directly online. Basically, e-invoices are usually online invoices but online invoices are not always electronic invoices.
E-invoices should, however, include the necessary information concerning the sale. As a result, e-invoice becomes identical to an online invoice. However, the e-invoice should be sent through Electronic Data Interchange or XML formats. These formats usually make it possible for creator’s signature. 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. Because of the inefficiencies that come with paper invoices, more businesses are shifting to e-invoicing. There are, however, various reasons for shifting to electronic invoicing.
1. Capturing digital invoices is easier.
Receiving invoices in paper or email formats add unnecessary costs as well as complexities. 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. Such complexities are, however, eliminated through e-invoices.
2. Automation of invoice validation.
For the account payable organizations, invoice validation is necessary for processing and approving payment. Validations is usually done to ensure the vendor is actually existing and standing. Validation is also meant to confirm post office number match the name of the vendor. Electronic invoices are, however, automatically validated using through date capture technologies. Otherwise, you would require manual validation and data entry.
3. Self-service is enhanced.
It’s normally expensive to employ staff to do payment inquiries. For instance, once the invoice has been sent, the supplier will need to contact the buyer in order to confirm receipt as well as invoice approval. Also, it would take time and incur expenses while responding to the supplier calls. With the help of an e-invoicing program that has a supplier portal every payment status can be checked and the supplier and the buyer can collaborate online to solve any payment issue.