Most businesses, no matter their size by now, have switched to e-invoicing. But some small businesses are having a hard time making the switch from a manual process to an electronic one. Most accounting and bookkeeping software have e-invoicing options, or there is software specifically dedicated to the electronic billing option to help make the transition.
Business owners who may be hesitant to switch to e-invoicing should know there are no disadvantages to doing so except possibly the software cost, which will be made up in the e-invoicing process. Here are six reasons your business should switch to e-invoicing.
Higher Efficiency
The process of invoicing is generally a cumbersome task for any business. The process is to create the invoice, check for accuracy, print, mail to the buyer, wait for payment, and then enter your servers’ payment. E-invoicing bypasses the difficulties associated with traditional invoicing. Besides invoicing software, you can use a downloadable and customizable e-invoice template instead of creating it from scratch. The most efficient aspect of e-invoicing is that you will avoid the hassle of printing and sending it to the customer, as your e-invoice can be billed immediately. The payment can be made right away, keeping your cash flow accurate and well documented.
Cost Reduction
The process includes many costs such as printer ink, paper, postage, and the time you pay an employee to process invoices. You can purchase invoicing software, and the rest of the process is cost-free since you will be sending the invoice electronically. Though individually, the costs may be less than a dollar, depending on how many invoices you generate per month or year, the cost could add up, and the cost of the software would pay for itself fairly quickly.
Avoiding Data-Entry Errors
Traditional invoices depend on data entry to be completed. Even scanning invoices that are returned with payment will require manual processing. Besides the consumption of time to do the data entry, there is room for entry errors. Even one decimal point entered incorrectly can end in a costly mistake. E-invoicing makes the entire process electronic. The accuracy will then be 100% rather than some room for error by doing it manually.
Better Access, Tracking, and Control
Most e-invoicing software offers the ability to access your e-invoicing data from any device, making it accessible from anywhere. The e-invoicing software lets you know when the customer opens the invoice, makes a payment, or communicates about the invoice. There are reports, analytics, and insights into your operations through the electronic process, enabling you to optimize them further.
Account Reconciliation
Businesses being suppliers to customers know that if there is any process for your business that includes deferred payments, invoicing is difficult to reconcile. This reconciliation is especially difficult when your customers may pay invoices all at once or break it up into lesser payments on their own. With e-invoicing, the process will be simplified, and the same no matter how your customer decides to make payments. The e-invoicing process allows for every type of payment and will record it accurately.
Reduced Carbon Footprint
With so many people concerned with the environment, e-invoicing is surprisingly environmentally conscious. You will save on paper products and non-biodegradable ink cartridges in your budget, and it will also save on their impact on the environment. Other waste reduction in the manual invoicing process will overall reduce your business’s carbon footprint.
Conclusion
Switching to e-invoicing has many advantages and no known disadvantages. It increases efficiency by saving time in the process and increasing the invoicing process’s accuracy. The data entry is built into the software and done upon receiving payment through the e-invoicing process. Because of the electronic process, you will also have better tracking, reporting, and control, which can make your business’s financial aspect more accurate.
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