Advantages of Electronic Invoices
The process of moving from manual or paper invoices to electronic invoices comes with a lot of advantages. Most firms that use the electronic invoicing method have been able to cut down operational costs that come from manual or paper invoices. With the current advancement in technology, most organization have found it fit to shift to the electronic invoicing. The benefits that come with the electronic way of invoicing are discussed below.
To begin with, the electronic way of invoicing will be able to cut down the carbon footprint. This is due to the fact that electronic invoicing will cut the use of paper for invoices. The reduction of paper invoicing will also result to the reduction of transporting the paper invoices. This in turn will reduce the processing of paper by reducing the amount of trees used in the production of papers. In addition to reducing the carbon footprint, the environment would have been conserved. Therefore, the electronic invoices are friendlier to the environment.
Next, the electronic invoices simplifies the process of invoice reconciliation by the supplier. This comes into play when a supplier supplies a given number of commodities, say more than one, in a given period of time. Hence, each of the supply will require its own invoice. The clients, on the other hand, may like to pay in bulk. Therefore, the customer is likely to pay for all supplies in one cheque. The electronic invoices will make it very easier for the supplier to compare and check his/her invoices with the amount paid.
Thirdly, electronic invoices are efficient and effective. 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 will impact the supplier negative has they will create a shortage in the funds at his/her disposal. When transporting the paper or manual invoices, they may get lost on transit hence making the supplier to make new ones. The risk of invoices getting lost is eliminated by the electronic invoices thus leading to earlier payments.
Finally, the electronic invoices provide an opportunity for the supplier to serve themselves. In normal occasions, once the supplier sends an invoice, he/she has to check with the customer and see whether the customer received it. After reception of the invoice by the customer, the supplier has to confirm its approval status. After being approved the payment date need to be communicated back to the supplier. This process is time-consuming and is very difficult. Electronic invoices provide for the elimination of this process. The supplier will be given an online platform where he/she has to follow all the requests of his/her invoice.