E-invoices, or electronic invoices as they are often called, aren’t really all that new of a concept. However, this doesn’t mean that many people can lack a bit of understanding around them.
Today we will be answering all the questions you have on the subject, and listing the benefits provided by e-invoicing.
What is e-invoicing?
E-invoicing makes use of accountancy software to issued, transmitted, received, and processed electronically. When being created they require specific document format types and remain digital throughout their entire life cycle, from the initial issuing to the eventual archiving.
Electronic invoicing can help to reduce overall workload by replacing manual tasks and minimising error.
What isn’t an e-invoice
To fully understand what electronic invoices are, you will need to understand what they are not. For instance, not all types of invoices or digital invoices are recognised as e-invoices. Here’s a couple of examples of ones that do not make the cut:
PDF Invoices –
PDF invoices are not recognised as e-invoices, even though they are normally sent by email, as they cannot be processed automatically. This is because they are not typically sent in a structured format.
Paper Invoices –
Paper invoices are not issued electronically, so even though they are converted to a digital format, they are not recognised as a form of e-invoicing.
Advantages of electronic invoicing
There are a large number of advantages to e-invoicing, which include the level of convenience they can provide a business and a customer with, the time-saving aspect they can provide, the reduced level of cost attached to them, and more.
Here is the full list of e-invoice advantages for you to consider:
Touchless operations: E-invoicing empowers the computerisation of tedious and blunder-prone assignments such as data entry, coordinating and approvals so you can redistribute staff to more important tasks.
Increased cash flow: By removing paper work and manual errands you can improve your cash flow levels and maintain a higher profit margin. This will also free up time for your employees to complete more important things on a daily basis.
Secure document and data exchange: Encrypted document transfers, digital signatures and secure networks all make e-invoicing the most secure way of sending and receiving invoices. There’s likewise no danger of documents being lost via the post office or ending up in someone’s junk email folder.
Real-time delivery and processing: View live conveyance and handling status of records on cloud-based platforms or straightforwardly from your ERP.
High-quality data: E-invoicing allows you to get to and dissect line level information that drives business development through better monetary and obtainment choices.
Reduced levels of error: Automated receipt approval and enhancement help guarantee only correct value-based information enters your ERP framework. Less disparities mean shorter process durations and better business relations.
Track and traceability: E-invoicing naturally tracks exchange history and the entire journey of your invoice; thus, you don’t need to invest energy doing it physically.
Harmless to the environment: E-invoicing not only assists you with bringing down paper use and CO2 outflows; this maintainable exertion additionally brings down task costs, prompts higher profit margins, and makes a straightforward, dependable brand reputation.
Satisfy lawful prerequisites: E-invoicing with the right service provider guarantees you are consistently up to date and agreeable with B2B and B2G charge and archiving enactment.
Remote work-prepared: E-invoicing errands can be finished from anyplace without the requirement for extra assets like printers, scanners or the postal services.
As you can see, the advantages awarded to any business venture utilising e-invoices are very much worthwhile. If you begin to use this format your invoicing standards will remain high, the amount of cost and time will become lowered, and your trading partners will appreciate the electronic format you now use, as it is more convenient for them to deal with.
Is now the time for you to begin e-invoicing?
We see no reason why it shouldn’t be. You are already aware of the benefits it provides you with, but if you are in need of even more reasons, we can help you out.
Many countries including the United Kingdoms, making tax digital scheme have begun to make e-invoicing mandatory by law, so your country could be the next to do so. Be ready for this to happen by making the change as soon as possible.
If you begin to use electronic invoices, you may be recognised as a forward-thinking business venture, and one that always has its customers and clients in mind. By utilising e-invoicing you will create a more convenient service for everyone that’s involved.
Don’t worry about having to let staff go if you decide to proceed with e-invoicing, as it will actually create more working opportunities than it’ll ever take away. Your company will be able to create skill-based roles, evolve existing ones, and keep in-house productions on the rise, rather than having to look for help elsewhere. As we have touched on previously, this will also make your remote workers more effective and flexible.