Electronic Invoicing or e-invoicing involves delivery of bills as well as related information to the clients electronically, with the use of the internet. As more people continue to adopt and accept e-commerce, there is the growing concern for security. As a result, many people are shifting to e-invoicing. Also, many organizations are now providing e-invoicing services and programs.
Also, online invoicing is a way of raising invoices through online platforms such as cloud-based software. These programs help to create and send the invoices with ease and to the clients directly online. Basically, e-invoices are usually online invoices but online invoices are not always electronic invoices.
E-invoices should, however, include the necessary information concerning the sale. As a result, e-invoice becomes identical to an online invoice. The e-invoices should, however, be sent in Electronic Data Interchange format or XML format. These formats usually make it possible for creator’s 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. Many businesses are shifting to e-invoicing because of the many inefficiencies arising from paper invoices. There are, however, various reasons for shifting to electronic invoicing.
1. It becomes easier to capture digital invoices.
When invoices are sent in paper and e-mail formats, it causes unnecessary complexities and costs. 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. However, e-invoices eliminates such complexities.
2. Automation of invoice validation.
Account payable organization will have to validate invoices prior to processing or approving payments. Validations is usually done to ensure the vendor is actually existing and standing. Also, validation ensures the post office number and the name of the vendor match. However, electronic invoicing allows the account payable department to use data capture technologies to validate such invoices automatically. Otherwise, you would require manual validation and data entry.
It’s normally expensive to employ staff to do payment inquiries. For example, the vendor needs to confirm whether the buyer has received the invoice and the approval. Usually, responding to the supplier would actually incur some costs and time as well. E-invoicing eliminate such complexities and costs and issues with payment can as well be solved online.