Learn More about Electronic Invoicing.
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. The concern for security by business and acceptance and adoption of e-commerce is increasing. 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. Such a software makes it easy to prepare and send the invoice to emails of customers directly online. Although electronic invoices are usually online invoices, online invoicing is not necessarily electronic invoicing.
Generally, e-invoice should contain all information regarding the sale. This ensures the e-invoice is similar to the online invoice. The e-invoices should, however, be sent in Electronic Data Interchange format or XML format. This is because the formats will allow for the creator signature. It is also possible to stamp the sending date and time on the e-invoice. After the invoice has been sent no change is possible.
With Cloud Trade invoicing, every business or supplier can use e-invoicing. Due to the inefficiencies that arise from paper invoices, many businesses have shifted to electronic invoicing. There are, however, various reasons for shifting to electronic invoicing.
1. Ease capturing digital invoices.
Usually, there are unnecessary costs and complexities of invoices received in email and paper formats. Usually, the invoices received through the mail will first be sorted, then opened before they are keyed to the system. For the invoices sent via emails, they need to be saved and sorted first and might also require being printed for keying in if you cannot extract the data automatically. However, e-invoices eliminates such complexities.
2. Automation of invoice validation.
Account payable organization will have to validate invoices prior to processing or approving payments. The validations involves ensuring the supplier is existing and well standing. The validation will ensure the name and the number of the vendor are matching. However, electronic invoicing allows the account payable department to use data capture technologies to validate such invoices automatically. Such validation would otherwise require data entry together with manual validation.
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. That would actually consume time and incur costs responding to the supplier. However, such expenses are, however, eliminated by e-invoicing while payment issues can be solved online.