Important Information Concerning 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. Also, many organizations are now providing e-invoicing services and programs.
Cloud-based software are online platforms that help to raise online invoices. These software usually help in preparation and sending the invoices directly online to customers’ emails. Although electronic invoices are usually online invoices, online invoicing is not necessarily electronic invoicing.
E-invoices should, however, include the necessary information concerning the sale. This makes the e-invoice identical to the online invoice. However, the e-invoice should be sent through Electronic Data Interchange or XML formats. This is because the formats will allow for the creator signature. 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. 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. Ease capturing 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. On the other hand, the invoices sent via email require the document to be saved first, the sorted and may as well be printed and keyed to the system if you do not have the necessary technology to extract such data. However, e-invoices eliminates such complexities.
2. Validation of invoices is automated.
Usually, account payable organizations must validate the invoices before they can process and approve the payments. The validations involves ensuring the supplier is existing and well standing. Validation is also meant to confirm post office number match the name of the vendor. Electronic invoices are, however, automatically validated using through date capture technologies. Such validation would otherwise require data entry together with manual validation.
3. Self-service is possible.
Hiring staff for payment inquiries is usually expensive. A vendor, for instance, will need to confirm if the client has received the invoice as well as its 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.