Why Switch to E-Invoice?
In most cases, digital invoice and electronic invoice or also known as e-invoice is causing confusion. Yes it is true that both of the invoices are capable of processing electronic payments from the point of its creation, there is actually a big difference between the two. For instance, e-invoice is made directly from online bank, straight from seller’s invoicing system or perhaps, via web form. From there, the file may be sent straight to the software of the buyer or it can be downloaded.
Actually, the e-invoice is delivered using e-invoicing operator to which the operator is almost the same with the postal system when sending paper invoices. If you’re using invoicing software on the other hand, there’s no need to separately open the software that’s used by the operator. This is because every recipient has e-invoicing address of their own. By making use of e-invoicing, it helps in getting rid of unnecessary steps like accuracy check, manual data entry as well as swapping of software.
Another thing that you need to know about electronic invoices is that, these are structured data that are made in formats of EDI or XML that’s created by the invoicing software and it would not be considered as one if for example that the format is in Word, Excel or PDF, if it is scanned or if the documents were processed using optical character recognition.
As a matter of fact, there are many benefits associated to using e-invoice and some of them are discussed below:
Number 1. Save time – much of the unnecessary steps will be taken out as you use e-invoice; this lets you and your customers to save time too.
Number 2. Reduce costs – you don’t have to pay anything for postal or paper fees when you have paperless invoicing. Moreover, by being able to save time using e-invoicing than emailing PDFs and using templates, you are literally saving time that can be used on more productive tasks.
Number 3. Reduce mistakes – by means of minimizing the manual input and boosting automation, this reduces typos and mistakes. There’s no need to worry that your invoice would be lost in the mail.
Number 4. Offer better customer service – the truth is, it is way more convenient for your clients if you can send them their invoice in their preferred platform. Based on studies as well, receiving invoice than the conventional invoices can save up to 90 percent on the processing cost. Furthermore, customers can make the most of early payment discounts by just having shorter delivery time.
Number 5. Be paid faster – as you use electronic invoice, it demands less time and effort for your customers to pay. This encourages them to pay quicker.