E-invoice: Issued, Transmitted, Received and Processed Electronically!
E-invoicing is todays and the continuing future of invoicing. A couple of multiple reasons why e-invoicing is way better compared to emailing PDFs or the original paper invoices. While e-invoicing may involve some limitations, the professionals outnumber the cons any day. We’ve listed the most compelling explanations why you ought to be switching to e-invoicing right now. But first, here is a quick continue reading what distinguishes an e-invoice from other invoices.
What is an e-invoice?
An electronic invoice, or an e-invoice, is often confused with a digital invoice. Both can be electronically processed from creation to payment, however, you can find a huge difference between these two. An e-invoice is created in the seller’s invoicing system, online bank or alternatively in a web-based form. After that, the e-invoice file can be either downloaded or sent right to the buyer’s software.
The e-invoice is delivered via an e-invoicing operator. The operator can be set alongside the postal system when sending paper invoices. However, if you work with invoicing software, you certainly do not need to open the operator’s software separately. Each e-invoice recipient also has its own e-invoicing address.
By e-invoicing, unnecessary steps like manual data entry, accuracy check, and swapping software are eliminated. For that to be possible, the invoice has to be in a format the buyer’s system can process. The e-invoice files come as structured data. Some frequently used formats are XML and EDI. Go to الفاتورة الإلكترونية for more details.
An e-invoice is:
- Structured invoice data in formats like XML or EDI, created in invoicing software.
- Structured invoice data issued using online forms.
In the event that you haven’t started e-invoicing yet, here are reasons why you should now!
- Save time
With e-invoicing, many unnecessary steps are cut from the invoicing process. Both you as well as your customer can save time using online e-invoicing software.
- Reduce costs
With paperless invoicing, there is no need to cover paper or for postal fees. Further, by saving time with e-invoicing instead of using templates and emailing PDFs, you save working time. Focus on other value-adding tasks instead. Everybody knows time is money!
- Reduce mistakes
By minimizing manual input and increasing automation, mistakes and typos are reduced. You don’t have to worry about your invoice getting lost in the mail.
- Offer better customer support
It is more convenient for your customer to get an e-invoice to their desired platform. According to Basware, getting an e-invoice rather than a paper invoice saves up to 90% on processing costs. Also, when the delivery time is shorter, your customer will have increased possibilities to use benefit of early payment discounts.
- Get paid faster
The e-invoice can be at the client pronto. Also, it demands less commitment effort to pay an electronic invoice. Because of that, the client will likely pay faster.
- Reduce paper consumption
Why waste resources like paper when it is it possible to send documents electronically? Right?
- Easier to keep track of invoices
Know when an invoice has been sent, viewed, and paid when using e-invoicing software. You will know for certain that the invoice is sent and received. With regards to the service provider, you can also see when the invoice has been viewed by the customer.
- An increased amount of control and insight into the invoicing process
If you use online invoicing software, everything is saved using one platform which is obtainable from anywhere on any device. Get an overview of your invoicing through automated reports and analytics. For instance, the Taimer invoicing software for smaller businesses and freelancers gives you real-time insights on your finances and cash flow.
- It really is promoted by many states
From April 2019, all public sector entities in EU-countries need to be in a position to receive e-invoices off their suppliers. The e-invoices then must adhere to the new European Standard EN (European Norm). Mexico and Brazil among other states have legislation that requires sales transactions to be documented in an e-invoice format. Even The U. S. Department of Treasury demands its bureaus to work with electronic invoicing.
- Easy to customize
Make professional looking invoices and never have to spend some time editing spreadsheet modules. If you still prefer to use spreadsheet invoice templates, you can download our free invoice template.
- Increased data integrity
From a buyer’s perspective, e-invoices decrease the threat of fraudulent bills. The authenticity of e-invoices is automatically validated.
- Everyone else is doing it
E-invoicing is already becoming typical, especially in the B2B-world. You may as well start e-invoicing now since eventually, you will have to, as your customers will demand it. Actually, some companies already won’t get invoices in virtually any other format.