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. 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.
Basically, e-invoices must contain pertinent information of the sale. This ensures the e-invoice is similar to the online invoice. Nevertheless, the e-invoices should be sent using XML or the Electronic Data Interchange formats. These formats usually make it possible for creator’s signature. It is also possible to stamp the sending date and time on the e-invoice. Once the invoice has been sent, it cannot be changed.
With Cloud Trade invoicing, every business or supplier can use e-invoicing. Many businesses are shifting to e-invoicing because of the many inefficiencies arising from paper invoices. Usually, there are various reasons that make shifting to e-invoicing necessary.
1. Capturing digital invoices is easier.
When invoices are sent in paper and e-mail formats, it causes unnecessary complexities and costs. When the invoices are sent in paper format, the must be sorted first, opened and then keyed in account payable system. On the other hand, the invoices sent via email require the document to be saved first, the sorted and may as well be printed and keyed to the system if you do not have the necessary technology to extract such data. Such complexities are, however, eliminated through e-invoices.
2. Validation of invoices is automated.
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. 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 possible.
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. That would actually consume time and incur costs responding to the supplier. With the help of an e-invoicing program that has a supplier portal every payment status can be checked and the supplier and the buyer can collaborate online to solve any payment issue.