Important Information Concerning Electronic Invoicing.
Electronic invoicing also known as e-invoicing is a way of delivering bills and other information to the clients through the use of electronic communications which is usually the internet. As more people continue to adopt and accept e-commerce, there is the growing concern for security. Because of this, the need to shift to electronic invoicing is accelerated. Again, more businesses are now offering the electric invoicing programs and services.
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. Also, online invoicing might not be necessarily e-invoicing, while e-invoices are generally online invoicing.
Basically, e-invoices must contain pertinent information of 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. As a result, a creator signature is possible. Stamping of the sending date as well as sending time is possible. After the invoice has been sent no change is possible.
With Cloud Trade invoicing, every business or supplier can use e-invoicing. Because of the inefficiencies that come with paper invoices, more businesses are shifting to e-invoicing. Shifting to the electronic invoices is necessary because of the following reasons.
1. Capturing digital invoices is easier.
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. Such complexities are, however, eliminated through e-invoices.
2. Validation of invoices is automated.
Usually, account payable organizations must validate the invoices before they can process and approve the payments. To confirm the supplier is valid, validation is necessary. The validation will ensure the name and the number of the vendor are matching. Nevertheless, it becomes possible for the account payable department to capture the data using technologies that validate electronic invoicing automatically. Otherwise, data entry, as well as manual validation, would be required.
3. Self-service is enhanced.
Hiring staff for payment inquiries is usually expensive. For instance, once the invoice has been sent, the supplier will need to contact the buyer in order to confirm receipt as well as invoice 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.