5 Uses For Services
Benefits 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. The improvement of technology has brought with it many advantages including the change of invoicing from manual to electronic. Listed below are the main advantages that are associated with the electronic invoices.
Firstly, the electronic invoices will lead to a reduction in the carbon footprint. 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. Consequently, this will lead to a reduction in the processing of paper which will in turn reduce the amount of trees used for paper production. Thus, conserving the environment and at the same time leading to a lower carbon footprint. Hence, electronic invoices are more environmental friendly.
In addition, the electronic invoices make the reconciliation of invoices by the suppliers faster and simpler. This is for when the supplier gives his/her customer a lot of goods or commodities within a specified period of time. Hence, each of the supply will require its own invoice. The customer finds it fit for him/her to pay once rather than paying for each invoice. Thus he/she will combine all the invoices and pay the supplier in bulk. With the electronic invoices it will be easier for the supplier to check whether all the payments have been made.
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 will impact the supplier negative has they will create a shortage in the funds at his/her disposal. Also some of the invoices might be lost on the way, therefore the supply will have to write a new one. The risk of invoices getting lost is eliminated by the electronic invoices thus leading to earlier payments.
Lastly, electronic invoices can allow for self-service. In the manual invoices the supplier will always confirm receipt of the invoice by the customer once he/she has sent it. After reception of the invoice by the customer, the supplier has to confirm its approval status. The payment date is communicated to the supplier after approval of the invoice. This process is very laborious and consumes a lot of time. The process can be eliminated by introducing an electronic invoicing system. in the electronic invoicing way, the supplier will be able to track the progress of his/her invoice online.