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Electronic invoicing, or e-invoicing, such as the name implies, will be the electronic exchange of invoice documents from the supplier and the customer. Electronic invoicing surpasses merely sending a PDF receipt into a customer via email. A true e-invoicing option would be an internal solution where an electric invoice is transmitted and received seamless between the supplier’s a / r system along with the customer’s accounts payable system. E-invoicing documents are generally exchanged in EDI or XML formats. (Source: E-Invoicing Basics)

Why switch from the manual, paper-based system to an electronic invoicing system? Paper-based method is notoriously time-consuming and at risk of errors. Therefore, paper invoicing will have higher costs and longer processing lifecycles.

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

For starters, there is not any mail to sort, distribute, or open. Not only this, e-invoicing eliminates expenses associated with paper bills, envelopes, and postage. Plus, it will require significantly less time for it to process generate bill payment. With all the new system, you could make and distribute a full batch of invoices with a number of clicks. (Source: Pay Simple)

Next, there’s no data entry required. Because the payment arrives in the buyer’s accounts payable system automatically, the accounts payable clerk doesn’t have to type in the data personally. E-invoicing eliminates the potential for mistakes and ensures accuracy. Likewise, you don’t need to scan paper bills, another manual method that needs time to work and could be vulnerable to errors for example illegible scans.

Meanwhile, all invoices are instantly and securely delivered. By eliminating mail through the equation, you happen to be also eliminating a few days from receipt to payment. Similarly, electronic payments speed the process and mean you won’t need to wait with the bank to deposit your hard earned money.

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

Benefits of E-Invoicing for Buyers

E-invoices offer benefits to your customers also. By way of example, you’ll be able to give a number of payment options such as debit, credit, and ACH. Paperless system also paves the way to automated reminders full of integrated “pay now” buttons that link to the balance. 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 for sides.

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