Importance of Electronic Invoices
There are so many benefits that can be achieved by moving from paper invoices or manual invoices to electronic invoices. Most organizations that use the electronic method of invoicing have been able to accrue cuts in their costs. 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.
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. 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. Thus, conserving the environment and at the same time leading to a lower carbon footprint. Hence, electronic invoices are more 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. Hence, each of the supply will require its own invoice. 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. 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. Therefore, paper invoices may lead to delays in payment. 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 eliminate the risk of losing invoices and in return will lead to early payment.
Finally, the electronic invoices provide an opportunity for the supplier to serve themselves. 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 time-consuming and is very difficult. With the electronic invoices, the processes above can be eliminated. in the electronic invoicing way, the supplier will be able to track the progress of his/her invoice online.