The Advantages of Electronic Invoicing
Electronic invoicing is more efficient than paper or digital invoicing in terms of cost, speed, and accuracy. It also integrates more seamlessly into your accounting process and is more environmentally friendly.
It is becoming increasingly probable that some tasks and procedures that are currently completed manually will eventually be automated. Sending invoices is no exception to the general rule that automating manual procedures enables you to optimize your business and get it closer to operating at full efficiency.
What exactly is an electronic invoice?
An electronic invoice is electronic throughout its entire life cycle, which means that all aspects of its creation, sending, payment, and financial bookkeeping are handled by computer systems from start to finish.
Nevertheless, this should not be confused with a digital invoice, which is just a paper invoice that has been converted to digital form—probably in PDF format. Digital invoices are different from electronic invoices because they require human workers to enter the information from the invoice into the books—a procedure that is neither totally electronic nor automated.
Electronic invoices can be sent online or in a variety of file formats. For example, Bilflo provides a gateway for electronic invoicing that allows users to send client bills via email with only the click of a button.
The Benefits of Electronic Billing
When you contrast electronic invoicing with conventional paper invoicing, you discover that electronic invoicing performs better than traditional invoicing techniques in a number of areas.
Cost
As opposed to paper or digital invoices, adopting an electronic invoice allows you to save a sizable sum of money. With a digital invoice, you won’t have to pay for the paper your invoices are printed on or the postage you’ll need to use to mail them to your clients. In terms of a digital invoice, in the long run, you’ll save money because it will take less time to enter your data into accounting books. Data input for a digital invoice still needs to be done by a staff member, which takes time and demands payment (time is money!).
For instance, the US Treasury predicted in 2013 that the adoption of electronic invoicing would result in yearly cost savings of $450 million and cost reductions of 50%. It is probable that these numbers have increased since the report’s publication.
Efficiency
Most people who use electronic invoices discover that doing so makes their company and consumers’ lives easier. Electronic invoices often integrate seamlessly with your accounting software, eliminating the need for the labor-intensive and (sometimes) costly data entry procedure. They can be automated to send out recurring bills, can be paid by your customer with a single mouse click, and they can be sent out automatically to customers who have signed up for your service.
Speed
The pace at which these operations take place can significantly shorten the time it takes for your invoice data to be entered into your accounting system. Compared to paper and digital invoicing systems, electronic invoices can be delivered, received, paid, and settled considerably more quickly. This eliminates the time (and cost) required for an employee to manually enter the data from the electronic invoice format into your accounting systems by simply uploading or automatically syncing the information.
Accuracy
Compared to digital and paper invoices, electronic invoices are more likely to be correct. The process of creating an invoice is simplified when you utilize an electronic one, which reduces friction. There are various processes in which mistakes might occur when an employee is in charge of data input and transmission, such as during invoice production, client payment, and data entry, as in the case of paper and digital invoicing techniques. However, there is only one time in using an electronic invoice when a mistake can be made, and that is when the invoice is first created. In conclusion, employing an e-invoice reduces the possibility of errors in your billing procedure and accounting records.
Environmentally responsible
Environmentally speaking, utilizing electronic invoices is preferable to using paper ones. Using an invoicing technique that doesn’t include paper will demonstrate that your firm has taken social responsibility when it comes to protecting the environment, as the production of paper goods has been known to considerably contribute to deforestation.
The better approach to doing business
Due to the numerous advantages that electronic invoicing offers, an increasing number of businesses are using or developing electronic invoicing systems. Comparing paper-based billing to digital invoicing is more cost-effective, quicker, more accurate, and better for the environment. Additionally, you may save a ton of time and money by simply integrating electronic invoicing into your accounting books, which will help you keep your financial records organized and current.
Users of electronic invoicing have witnessed the benefits it may have for a company.
It would not be unexpected to see an increase in the number of manual operations becoming digitized in the future, given how much commerce is done online. One of the simplest ways to improve a generally laborious process is by using electronic invoices. Automated invoicing is also the more effective way to issue invoices. So, if you haven’t already, you should consider adopting electronic invoicing, especially if you want to be a pioneer in your field.
If you’re a staffing company, Bilflo is a great option for automating client billing and managing hundreds of contractors at once.
Source: TechRadar
