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. Many people are adopting and accepting e-commerce while still there are concerns about security. This has accelerated the shift to electronic invoicing. Also, many organizations are now providing e-invoicing services and programs.
Cloud-based software are online platforms that help to raise online invoices. 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.
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. Also, sending time and date are also stamped on the e-invoice. Once the invoice has been sent, it cannot be changed.
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.
Receiving invoices in paper or email formats add unnecessary costs as well as complexities. Usually, the invoices received through the mail will first be sorted, then opened before they are keyed to the 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. With e-invoicing, however, such complexities are eliminated.
2. Automation of invoice validation.
Account payable organization will have to validate invoices prior to processing or approving payments. The validations involves ensuring the supplier is existing and well standing. Also, validation ensures the post office number and the name of the vendor match. Nevertheless, it becomes possible for the account payable department to capture the data using technologies that validate electronic invoicing automatically. Such validation would otherwise require data entry together with manual validation.
3. Self-service is enhanced.
Hiring staff for payment inquiries is usually expensive. For example, the vendor needs to confirm whether the buyer has received the invoice and the approval. That would actually consume time and incur costs responding to the supplier. However, such expenses are, however, eliminated by e-invoicing while payment issues can be solved online.