Importance of Electronic Invoices
There are so many benefits that can be achieved by moving from paper invoices or manual invoices to electronic invoices. The business that has done so already enjoys cost reductions that come from the use of electronic invoices. Most firms in the current technological age have started moving from the manual invoices to electronic invoices. The benefits that come with the electronic way of invoicing are discussed below.
To start with, the carbon footprint will be reduced with the introduction of electronic invoicing. 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. In turn the trees used in the production of paper will be reduced. Hence , the environment would have been conserved in addition to reducing the carbon footprint. Thus, the electronic invoices are environmental friendly.
Secondly, the use of electronic invoices will make it easier for suppliers to identify and reconcile their accounts. This comes into play when a supplier supplies a given number of commodities, say more than one, in a given period of time. Thus, the supplier will send different invoices for each supply. 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 because the manual invoices or paper invoices always take a longer way to reach the intended person. 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. Normally, when the supplier sends an invoice, he/she has to confirm with the customers whether he/she has received the invoice. 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 very laborious and consumes a lot of time. With the electronic invoices, the processes above can be eliminated. The supplier will be given an online platform where he/she has to follow all the requests of his/her invoice.