Benefits Of Electronic invoicing
Electronic invoicing is also called e-invoicing. It is a form of electronic billing that is used by trading partners for example suppliers and their customers to monitors and present transaction documents to ensure their agreement terms are being met. These documents include debit notes, invoices, credit notes, purchase orders payment terms and instructions. Learn more about e-invoicing below.
Many businesses are going the electronic invoicing route, here are the key benefits to doing so; cash management is enhanced because by processing invoices using the electronic means, all the future payments become visible in the accounting system hence improving the forecast accuracy. Both the buyer and the supplier will benefit a lot when it comes to discounting processes. There is also an instant and secure delivery of invoices hence you will not be required to wait in a line at the bank to deposit your day's checks. You can easily deliver the invoices to your customers with just a click of a button directly to their emails.
With an electronic invoicing account reconciliation is usually enhanced because the buyers can send the electronic remittance devices along with a payment which provides a detailed accounting of invoices paid and also the debits and credits. With e-invoicing there is always an automated matching because there is a technology that captures all the data which is necessary to perform all the calculations and validations.
Electronic invoicing through the Openfactura platform is also essential because it helps in eliminating the need for shipping and stationery costs hence leading to improved margins. It also reduces manual labor because only few workers will be required to process a lot of invoices in one day. Businesses that use electronic invoicing also reduce the risk of non-compliance, for example, wrong calculations of taxes, line item mismatches or using wrong codes, this is very important because it simplifies cash flow and also improves the visibility of the expenditures.
When you want to use electronic invoicing in your business, then you will be assured of the above benefits, and you will also easily monitor the cash flow in your business easily without any hassle. To enable electronic invoicing, you are supposed to have an existing Enterprise Resource Planning or an accounting system which helps in viewing the transactions. When you have a small business, then these invoicing will enable you to grow your business to greater levels; hence you will end getting a lot of profits and also customers, this is because many customers want quick transactions that are always transparent.