Learn More about Electronic Invoicing.
Electronic Invoicing or e-invoicing involves delivery of bills as well as related information to the clients electronically, with the use of the internet. Many people are adopting and accepting e-commerce while still there are concerns about security. This has accelerated the shift to electronic invoicing. Also, many organizations are now providing e-invoicing services and programs.
Cloud-based software are online platforms that help to raise online invoices. Such a software makes it easy to prepare and send the invoice to emails of customers directly online. Also, online invoicing might not be necessarily e-invoicing, while e-invoices are generally online invoicing.
E-invoices should, however, include the necessary information concerning the sale. This makes the e-invoice identical to the online invoice. Nevertheless, the e-invoices should be sent using XML or the Electronic Data Interchange formats. This is because the formats will allow for the creator signature. Also, sending time and date are also stamped 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. Because of the inefficiencies that come with paper invoices, more businesses are shifting to e-invoicing. Usually, there are various reasons that make shifting to e-invoicing necessary.
1. It becomes easier to capture digital invoices.
Usually, there are unnecessary costs and complexities of invoices received in email and paper formats. This is because if the invoices are received through the mail, such document must be sorted, opened, and keyed into the 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. Such complexities are, however, eliminated through e-invoices.
2. Validation of invoices is automated.
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. Also, validation ensures the post office number and the name of the vendor match. Nevertheless, it becomes possible for the account payable department to capture the data using technologies that validate electronic invoicing automatically. Such validation would otherwise require data entry together with manual validation.
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. Also, it would take time and incur expenses while responding to the supplier calls. E-invoicing eliminate such complexities and costs and issues with payment can as well be solved online.