Electronic invoicing or e-invoicing is, as the name suggests, the electronic exchange between a customer and a supplier of invoice documents. Electronic invoicing is more than sending a PDF receipt via email to a customer. An integrated e-invoicing solution allows for an electric purchase order to be sent and received seamlessly between the customer's accounting system and the supplier's receivables system. E-invoicing documents can be exchanged in EDI and XML formats.
Why should you switch from a paper-based, manual system to an electronic billing system? The paper-based system can be slow and error-prone. Paper invoicing is, therefore, more expensive and has a longer processing time.
Despite automation being widely adopted for many business processes accounts payable and receivable remain largely manual.
E-Invoicing Benefits for Suppliers
These problems can be solved by switching to e-invoicing. It allows for faster processing, lower transaction cost, greater visibility, and significant savings. E-invoicing offers many benefits for businesses throughout the AR/AP process.
E-invoicing eliminates the need to scan paper bills. This manual process can take time and is prone to errors like illegible scans.
E-Invoicing: Benefits for Buyers
Customers also enjoy the benefits of e-invoices. You can offer different payment options, such as credit, debit, or ACH. The paperless system allows for automated reminders with integrated "pay now” buttons that can be linked to the bill. Customers' accounts payable teams will love not having to scan or manually enter data.
E-invoicing is a time- and cost-savings move that benefits both the customer and the company.