Different aspects of today’s world is becoming digitized and the way businesses process their invoices is no exception. It is estimated that processing an invoice manually costs around 35 dollars while the processing an e-invoice costs 8 dollars. This shows that businesses can not only save time, but they can also benefit financially from e-invoicing.

So, what is an e-invoice and what can they be used for? This article will specify some reasons why moving your billing process toward online solutions can be a good idea. You can also get some tips on how you can get started.

What exactly is e-invoicing?

To put it simple, electronic invoicing is the exchange of invoice documents in electronic format. Traditional invoicing, which is based on paper, is intensively time consuming and is prone to human error.

e-invoicing

Generally, e-invoices don’t require the use of any sort of paper but they are as valid as paper invoices. However, in order to be valid, an e-invoice must contain the correct data and verifiable authenticity. This means that an e-invoice should state the goods or services received and must be executable based on the terms defined for the customer before the transaction.

Typically, it is beneficial for both buyers and sellers to stick to e-invoicing for their payment process.

History of e-invoicing

E-invoicing and its roots can be traced back to 1960s. At that time, companies developed Electronic Data Interchange (EDI) which helped them send documents such as invoices.

The EDI system became the groundwork for a more sophisticated system which emerged in 1990s. By 2000, suppliers and customers had a renewed ability to view and organize their invoices.

By 2012 and as the digital era began, companies had a rapid shift toward e-invoicing until the point where 73% of companies were using digital invoicing to some extent in this year.

Advantages of e-invoicing

There is no doubt that e-invoicing is full of benefits for both suppliers and customers, but the most noteworthy benefit is removal of humans from the process. Paper invoices required someone to enter the data manually. Aside from being too time consuming, the process was also prone to human errors. In addition, paper invoices were prone to getting lost.

e-invoicing

Another big benefit of e-invoicing is how processing invoices electronically can cut down on company expenses up to 80%. In what follows, I will provide you with a more detailed description of e-invoicing benefits.

Benefits of e-invoicing for buyers

  • Reduced costs
  • Better accuracy
  • Faster payment processing
  • Improved dispute handling
  • Improved cash management
  • Reduced fraud and duplications

Benefits of e-invoicing for suppliers and managers

  • Faster payments
  • Improved visibility
  • Reduced costs
  • Increased productivity
  • Improved supplier/customer relationship
  • Fewer rejected invoices
  • Improved cash management

How to get started with e-invoices?

e-invoicing

Getting started with electronic invoices largely depends on how big your business is. For small businesses and freelancers, the process is as simple as using a software. Some of the best e-invoice software you can resort to is Zoho invoicing software which allows you to create invoices and integrate other online payment gateways such as PayPal or Strip to make sure you can get paid through your favourite payment methods.

How to pay e-invoices?

If you are offering an international services, a payment service such as PayPax reduces the cost of your invoice payments. In addition, one of the most important factors for international transactions is to make sure your customers are paying and your suppliers are being paid by their favourite payment methods and currencies.

Getting starting with electronic invoices is absolutely simple and you can start saving a lot of time and money for your business if you join the digital world.

Leila

Author Leila

Leila is a technology enthusiast and an avid blogger who holds a Master's degree in English literature. If she is not writing blog posts, you can find her cozying up in bed with an e-book or watching a movie.

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