E-invoicing, also known as electronic invoice, is a method of billing between suppliers and buyers in which the clients receive an invoice in a specific electronic format.
In addition, e-invoicing is used to track transactional data between a business and its customer (whether it is paid, rejected or in progress).
The purpose of electronic invoicing is to replace traditional invoices with something that is more efficient and least inconvenient.
The more advanced the technology, the more we no longer have to process a large number of invoices physically.
By eliminating paper and manual processing from your invoices, you can save a lot of money and time.
Something like Accounting helps to estimate your cash flow, track profitability, know who owes you money and keep track of your accounts with current invoices and payment.
What issues arise with processing traditional invoices?
Invoice issues may have a severe impact on the bottom line, whether they entail paper-based operations or firms who are trapped between hard copy and digital workflows.
Identifying your company’s invoice processing issues and applying solutions that fully solve them, on the other hand, does not have to be tough.
- Confusing processes
When you are dealing with a larger company, it is not easy for the company to decide on the payment of invoice amounts.
This may be because the payment transactions are handled by different departments at the same time and many approvals are required depending on the number of purchases.
You can avoid this issue by being as specific as possible with your invoicing language and structure, and by basing your descriptions on the original purchase order (PO), work quotation, or other documents.
Only then will the approval procedure will flow smoother!
If the invoice is as straightforward to grasp as possible, the accounting department and the approver know precisely what they’re paying for.
- Administrative errors
Errors in pricing, payment due dates, and other oversights may all result in payment delays that no business can afford.
When a finance person has to go back and find out what went wrong, how many cycles were impacted, compute the appropriate modifications, and make sure it doesn’t happen again, that customer is losing a lot of time.
Even if the mistakes are inadvertent, you risk damaging the connection or losing the client.
For example, if your automated system is getting price data from a database that hasn’t been updated in six months, stop sending invoices until the database is updated.
Alternatively, if your invoices are manually created and prone to human errors, consider switching to a digitised system that reduces these mistakes and improves productivity on all fronts of business finance.
- Data is unclear or missing entirely
Your invoices must be correct if you want them to be paid on time and without the need for further human involvement.
When clients demand data in order to process invoices, there’s a strong possibility your payment will be sent to the back of the line until the issue is resolved.
An Accounting system like Enterpryze takes notes of any early payment discounts or incentives, as well as late penalties and acceptable payment methods.
It’s critical to have consistent, up-to-date data across all of your platforms – so you or your finance department have access to information immediately and without the need for multiple revisions.
In any case, make sure you have a system in place to properly examine invoice data before sending it.
What are the benefits of electronic invoicing over traditional invoices?
E-invoicing is a life saver.
Because it processed and sent the invoice digitally, you no longer have to manually create an invoice, to collect payments from your customers.
By removing paper invoices, we are able to:
- Improve your client service
Receiving an e-invoice to their preferred platform is more convenient for your consumer.
Receiving an e-invoice instead of a paper invoice saves up to 90% on processing expenses and when delivery time is reduced – your client will have more opportunities to benefit from early payment incentives.
- Minimize human error
Mistakes related to data entry that comes with manual invoice processing is too much of a hassle.
Therefore, electronic invoicing is an excellent approach to prevent making a human error.
Everything is kept on one platform, which is accessible from anywhere on any device if you utilise online invoicing software.
With Enterpryze’s Accounting package – you can even utilize automated reporting and analytics to have a better understanding of your invoices.
- Save money and time for faster payment
It is possible to eliminate the time-consuming processes for paper invoices such as printing and postage.
For example, PDF invoices consume more time as they cannot be processed automatically.
You won’t have to pay for paper or postage with paperless invoicing.
Furthermore, by utilising e-invoicing instead of templates and sending PDFs, you save time at work.
e-Invoicing makes your audit process a smoother one
Many countries around the world have adopted e-invoicing. It instantly reports B2B (Business to Business) invoices to the GST system, facilitating the filing of monthly returns.
Taxpayers benefit from e-invoice since it increases efficiency, reduce costs, and eliminate the possibility of human error in the application of the tax on goods and services.
With e-Invoicing, your auditors can easily evaluate whether the records for each purchase or sale are correctly preserved in a post-audit (also known as post-transaction.)
The invoice is the principal audit document for tax authorities that adopt this methodology.
An electronic invoicing system boosts your business’ strong compliance, which can help organisations perform post-audit tax compliance processes when need be.
You are not required to manually enter data for each transaction because our paperless invoice app can collect data from each invoice and transfer it into your Accounting system right away.
Here’s what the Accounting package can do for you:
- Improve cash flow for suppliers with more timely payment
- All transaction details will be always available online
- Build efficiency and avoid any fake invoices
- Secure document and data exchange
- Track e-invoices in real-time
So why waste time when everything is just a fingertip away?
Book a free demo of the Enterpryze Accounting package to see how your finance processes can be made a breeze!