[ad_1]
Electronic invoicing, or e-billing, as the name suggests, is the electronic exchange of invoice documents between suppliers and customers. Electronic billing goes beyond just sending a PDF receipt to the customer by email. A true E-billing solution is an integrated solution where an invoice is sent and received seamlessly between accounts receivable system supplier and customer accounts payable system. E-billing documents are usually exchanged EDI or XML format. (Source: E-Invoicing Basics)
Why switch from manual, paper-based system of electronic invoicing system? Paper-based systems is extremely time consuming and prone to errors. As such, paper billing tends to have higher costs and longer production life span
Despite the widespread adoption of automation of many business processes, Accounts Payable and Accounts processes remain largely manual (Source: Dolphin Corp) ..
Advantages of electronic invoices to suppliers
switch to e-billing solve these problems, leading to faster processing, lower transaction costs, greater visibility and significant savings. From a business perspective, e-billing enjoy the benefits of AR / AP processes.
For starters, there is no mail to sort, distribute or open. Not only that, e-billing eliminates the cost of paper bills, envelopes and postage. Plus, it takes much less time to work to create the payment process. With the new system, you can create and distribute an entire group of accounts with a few clicks. (Source: Pay Simple)
Next, there is no data entry required. Since the payment is received in the buyer’s payment system automatically, accounts payable clerk does not have to enter data by hand. E-invoicing eliminates the possibility of errors and ensures accuracy. Likewise, there is no need to scan paper invoices, other handiwork that takes time and can be prone to errors as unreadable scans.
At the same time, all the accounts in place and sealed. By eliminating the mail from the equation, you are also eliminating several days of receipt of payment. Similarly, electronic payments speed up the process and you do not have to wait in line at the bank to deposit money.
electronic invoices is easy to store and reference, without physical file cabinets required. As you follow the customers, you can easily include a link or attachment to the original payment, Purchase Order, or related documents.
Advantages of electronic invoices for buyers
E-accounts offer benefits for customers as well. For example, you can offer a variety of payment options such as debit, credit and ACH. Paperless system also opens the door to automatic alerts complete with built-in “pay now” button to connect to the bill. Customers’ accounts paid team will appreciate not having to manually enter data or scan paper bill too.
switch to e-invoicing saves time and money, a win-win for both parties.
Works Cited:
1. Pay Simple, “Advantages of Electronic billing and collection,” – http://paysimple.com/blog/2011/07/13/advantages-of-electronic-invoicing-and-billing/
2. Dolphin Corp, “E-billing for accounts payable,” – http://www.dolphin-corp.com/business-process-management/e-invoicing-for-accounts-payable/
3. E-Invoicing Basics “What is E-Invoicing,” – http://www.einvoicingbasics.co.uk/what-is-e-invoicing/
[ad_2]