Advantages of Electronic Invoices
The process of moving from manual or paper invoices to electronic invoices comes with a lot of advantages. Most organizations that use the electronic method of invoicing have been able to accrue cuts in their costs. Most firms in the current technological age have started moving from the manual invoices to electronic invoices. The main advantages of the electronic invoicing over the paper or manual one are discussed below.
Firstly, the electronic invoices will lead to a reduction in the carbon footprint. This is due to the fact that electronic invoicing will cut the use of paper for invoices. By reducing the paper invoices, the transportation that comes with it will also be reduced greatly. 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. Hence , the environment would have been conserved in addition to reducing the carbon footprint. Therefore, the electronic invoices are friendlier to the environment.
Secondly, the use of electronic invoices will make it easier for suppliers to identify and reconcile their accounts. The reconciliation is for when the supplier supplies so may good or commodities in a given time period. 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. Hence he/she will pay the supplier in one cheque for all the supplies. When the supplier uses electronic invoices, it will be very convenient for him/her to reconcile all the payments with his/her invoices.
Thirdly, electronic invoices are efficient and effective. This is due the fact that paper invoices will take a long way before reaching to the customers. Therefore, paper invoices may lead to delays in payment. These delays in payment will affect the supplier and his services as he/she will have a deficit. In other instances, the manual or paper invoices will lead to other invoices being lost on the way, therefore requiring the supplier to draft new ones. 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. Normally, when the supplier sends an invoice, he/she has to confirm with the customers whether he/she has received the invoice. Once the customer receives the invoice, the supplier has to confirm its approval. The payment date is communicated to the supplier after approval of the invoice. This process is very laborious and consumes a lot of time. With the electronic invoices, the processes above can be eliminated. The electronic invoicing system provides the supplier with an online portal where he/she will be able to follow the progress of his/her invoice.