What You Need to Know 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. Because of this, the need to shift to electronic invoicing is accelerated. On the other hand, many companies provide electronic invoicing software as well as services.
Cloud-based software are online platforms that help to raise online invoices. These programs help to create and send the invoices with ease and to the clients directly online. Also, online invoicing might not be necessarily e-invoicing, while e-invoices are generally online invoicing.
Basically, e-invoices must contain pertinent information of the sale. This ensures the e-invoice is similar to the online invoice. However, the e-invoice should be sent through Electronic Data Interchange or XML 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. 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. When the invoices are sent in paper format, the must be sorted first, opened and then keyed in 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. 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. To confirm the supplier is valid, validation is necessary. 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. Otherwise, data entry, as well as manual validation, would be required.
Hiring staff for payment inquiries is usually expensive. 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.