Advantages of Electronic Invoices
There are critical advantages of changing your invoicing system from manual or paper to an electronic one. Most firms that use the electronic invoicing method have been able to cut down operational costs that come from manual or paper invoices. Most firms in the current technological age have started moving from the manual invoices to electronic invoices. Listed below are the main advantages that are associated with the electronic invoices.
To start with, the carbon footprint will be reduced with the introduction of electronic invoicing. This is because people will change from the use of paper invoices to electronic invoices. Also the transportation of the paper invoices will be cut by a great deal. This in turn will reduce the processing of paper by reducing the amount of trees used in the production of papers. Hence , the environment would have been conserved in addition to reducing the carbon footprint. Thus, the electronic invoices are environmental friendly.
In addition, the electronic invoices make the reconciliation of invoices by the suppliers faster and simpler. This comes into play when a supplier supplies a given number of commodities, say more than one, in a given period of time. Therefore, the supplier will write an invoice for each of his/her supplies. The customer, on the other hand, will see it suitable for him to pay once in bulk. Therefore, the customer is likely to pay for all supplies in one cheque. When the supplier uses electronic invoices, it will be very convenient for him/her to reconcile all the payments with his/her invoices.
Another advantages is the effectiveness and efficiency of the electronic invoices. This is due to the fact that the manual way of invoicing always consumes a lot of time in getting the invoice to reach the customers. Hence, there are delays that may result from the manual or paper invoicing way. The delays may lead to a deficit in funds for the supplier. Also some of the invoices might be lost on the way, therefore the supply will have to write a new one. Electronic invoices will remove the risk of the invoices getting lost, this will also lead to payments made on time.
Lastly, electronic invoices can allow for self-service. In normal occasions, once the supplier sends an invoice, he/she has to check with the customer and see whether the customer received it. Once the customer receives the invoice, the supplier has to confirm its approval. After being approved the payment date need to be communicated back to the supplier. This process is very laborious and consumes a lot of time. The process can be eliminated by introducing an electronic invoicing system. The supplier will be given an online platform where he/she has to follow all the requests of his/her invoice.