Learn More about Electronic Invoicing.
E-invoicing also known as the electronic invoicing is a process where bills are delivered electronically to the clients through the internet. As more people continue to adopt and accept e-commerce, there is the growing concern for security. This has accelerated the shift to electronic invoicing. On the other hand, many companies provide electronic invoicing software as well as 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.
Basically, e-invoices must contain pertinent information of 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. As a result, a creator signature is possible. Stamping of the sending date as well as sending time is possible. 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. Many businesses are shifting to e-invoicing because of the many inefficiencies arising from paper invoices. Shifting to the electronic invoices is necessary because of the following reasons.
1. Ease capturing digital invoices.
When invoices are sent in paper and e-mail formats, it causes unnecessary complexities and costs. 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. With e-invoicing, however, such complexities are eliminated.
2. Automatic invoice validation.
Account payable organization will have to validate invoices prior to processing or approving payments. 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. Nevertheless, it becomes possible for the account payable department to capture the data using technologies that validate electronic invoicing automatically. 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 example, the vendor needs to confirm whether the buyer has received the invoice and the 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.