What You Need to Know about Electronic Invoicing.
Electronic Invoicing or e-invoicing involves delivery of bills as well as related information to the clients electronically, with the use of the internet. The concern for security by business and acceptance and adoption of e-commerce is increasing. This has accelerated the shift to electronic invoicing. On the other hand, many companies provide electronic invoicing software as well as services.
On the other hand, online invoicing involves raising an invoice using an online platform like the cloud-based software. These software usually help in preparation and sending the invoices directly online to customers’ emails. Although electronic invoices are usually online invoices, online invoicing is not necessarily electronic invoicing.
Basically, e-invoices must contain pertinent information of the sale. This makes the e-invoice identical to the online invoice. Nevertheless, the e-invoices should be sent using XML or the Electronic Data Interchange formats. As a result, a creator signature is possible. Stamping of the sending date as well as sending time is possible. It is usually not possible to make changes after sending the invoice.
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. Shifting to the electronic invoices is necessary because of the following reasons.
1. It becomes easier to capture digital invoices.
Usually, there are unnecessary costs and complexities of invoices received in email and paper formats. This is because if the invoices are received through the mail, such document must be sorted, opened, and keyed into the account payable system. Also, when the invoices are sent through email, the documents need to be saved, sorted and could as well be printed and keyed in when there is no a technology in place to automatically extract the data. However, e-invoices eliminates such complexities.
2. Automation of invoice validation.
For the account payable organizations, invoice validation is necessary for processing and approving payment. The validations involves ensuring the supplier is existing and well 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. Usually, responding to the supplier would actually incur some costs and time as well. However, such expenses are, however, eliminated by e-invoicing while payment issues can be solved online.